All Forum Posts by: Will Barnard
Will Barnard has started 146 posts and replied 13855 times.
Post: Cash Buyers List Strategies
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- Santa Clarita, CA
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Why not go to your title company and ask them to scrape a list of all cash sale transactions over the last year where the purchaser was an entity and where that entity bought multiple in one year. There is your real buyer list.
Post: Half bath vs full bath
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2 full baths is almost always going to bring you a higher value for resale. The only way to know for sure is to run an analysis on each along with the costs to convert to full bath. Get comps from agents on both options and see if the capital investment delivers a positive return or not.
Post: Selling Mom's place-freshening it up?
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The only way you can get a correct answer to your question is if you run a full financial analysis. Get the as is value, a quick lipstick upgrade value with associated costs to do so, and a value after complete rehab to full retail value along with those associated costs. Then compare returns for each of the 3 options.
Post: Best tool for bookkeeping
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Quickbooks or excel. Can’t go wrong. QB is more detailed and can be confusing, but you only need to use some of the tools, not all.
Post: Flip financial advice/question
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Originally posted by @Andy Thompson:
@Steve Sauro there was another post recently asking how to handle a similar deal, except the contractor wasn't family. The contractor ended up bringing receipts at the end of the project that were $40k in excess of the $80k they had budgeted for rehab (so he said rehab cost $120k). They'd had an agreement, don't know if it was written down, which required a PO prior to overages but they didn't get the PO's...so now they're in a sticky situation. All this to say that with fluctuating material costs and lead times it's reasonable to set the expectation early on that he should be reporting costs and submitting change orders--and also what will happen if it isn't handled correctly. Tell your brother that any investor will expect some amount of reporting during the rehab, and you're helping him learn to do the additional administration required to be a partner in a deal. That will hopefully remove the strain from your personal relationship and help keep an air of professionalism to the project.
This is a great example. I was going to state something similar in that the contractor can very easily add costs of materials into a job above and beyond the actual and it’s not easy to see it if you are not super experienced.
That said, this is your brother and I applaud your efforts to bring him in. My brother is my 50/50 partner in our construction and HVAC firm and we split duties according to each there strengths. Proper transparent accounting is essential to any partnership, including when partnership is family.
Post: Is It Just Me or Is BP Anti Wholesaling
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- Santa Clarita, CA
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Originally posted by @Randall E Collins:
Thank you Mr. Barnard. I've been following the wholesaling forum on BP for the past several months. Because I'm a wholesaler looking to connect with other wholesalers for educational purposes, network with others and offer advise where possible. I have noted however, that the forum's beginning comment starts with how corrupt wholesalers are. Under the title of the truth about wholesaling. And then there is always the handful of the "Higher-Ups" mentioned, that are not wholesalers, but also follow the forum for no obvious reason other than to criticize wholesalers. I don't believe BP is anti-wholesalers, not in the least, but there are those who need to get a life and find something better to do like tend to their own shop.
Nowhere in my thread of the truth about wholesaling does it mention anything about wholesalers being corrupt. It was an example of the poor tactics the wholesaler used to teach others. I have wholesaled many times years back so I have personal experience and in all cases, never did I violate laws or misrepresent myself like so many do.
Post: Is It Just Me or Is BP Anti Wholesaling
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- Santa Clarita, CA
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Originally posted by @Marlon Lunsford:
Is it just me, or does it seem as if the BP "higher ups" have a bitter taste in their mouths when mentioning wholesaling? No question,BP is a great site for learning and networking. Where is the love for wholesaling?
I will reiterate what Don, Joe, and Jay stated above. We “higher ups” as you stated, which more accurately is the long standing members of the community and NOT BP owners, is that we try to educate those who come here preaching or asking about wholesaling and spout illegal or misinformation.
I suggest reading this: https://www.biggerpockets.com/forums/93/topics/58383-the-truth-about-wholesaling-
Post: Flip in Sherman Oaks, CA w/ incredible views.
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- Santa Clarita, CA
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Investment Info:
Single-family residence fix & flip investment.
Purchase price: $1,055,000
Cash invested: $620,000
Sale price: $2,240,000
Sherman Oaks single family home repositioned with addition, new master deck, updated and newly formatted pool/spa and new modern farmhouse design. Incredible views, multiple over ask price offers made this flip a success!
What made you interested in investing in this type of deal?
Been doing this successfully for over 10 years here locally.
How did you find this deal and how did you negotiate it?
MLS, negotiated ask price down.
How did you finance this deal?
From my private money network.
How did you add value to the deal?
Re-designed the interior layout, added square footage, added master deck, and re-designed the exterior from dated Tudor style to Modern Farmhouse.
Post: Partnerships in flips
- Developer
- Santa Clarita, CA
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Originally posted by @Jose Contreras:
@Will Barnard
Good point! I guess the question will be is it worth the additional effort for marginal gains after taxes. I will have to dwell on that.
Thanks!
I have been flipping homes since 2009 and a RE investor since 04, so I would say it is worth it so long as you are working with good deals with enough meat on the bone for profits that make your return worthwhile. One should compare apples to apples by doing a cash on cash and IRR rates of return. If your deal lands you a return worth the time and effort beyond what you could get passively elsewhere, then that is a sign for a green light. You would also need to weigh the risk factor for each investment.
Post: First Rehab: WHERE TO START???
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- Santa Clarita, CA
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Originally posted by @Justin Rockitter:
I am in the process of searching for my first brrrr investment. I found a duplex and after analyzing comps and having my realtor estimate rehab costs, it seems to be a good investment. I am using a hard money lender. What are the steps I should take to get a solid estimate for ARV and rehab cost. Do you suggest I bring in a contractor for a bid? Do I even have time to bring in a contractor for a bid? Do I just take my realtors estimate and add 10% for a cushion? I know there is also a time crunch and I am a little overwhelmed with how to analyze this deal and have it approved by my lender in time before someone else snatches it up (if I do end up wanting to buy it of course).
You are putting the cart before the horse here. NEVER trust a realtor's rehab estimate, 99% of them have no clue what they are talking about when it comes to construction numbers. For your ARV, you certainly can get that price opinion from your agent but I would get second and third opinions - including from your hard money lender.