All Forum Posts by: Bill J Fay

Nailed it! I'd like to add a small piece to your Utility Activation line. Do a sewer scope before you start your project to understand the condition of your line. This can be a huge expense if it needs attention, so doing this up front will allow you to budget accordingly.

Totally agree with Mike. I would like to add, I highly recommend having your first flip be in your local area. You'll want to check in almost every day to learn the construction side of the flipping business. This will almost always be a requirement if you are looking for financing as well. Good luck!

I don't have any contractors in the MKE area, but I do have some suggestions. 

1) RE Agent's that work with investors. They can be a great resource for contacts. 

2) Local REI meet ups.

3) Home Depot usually has recommendations. Go early in the morning and get business cards. 

4) Call local contractors that have their contact info on their trucks when driving around town. This usually means they will be a tad cheaper since they don't have a marketing budget.

You came to the right place my friend: 

Find a Real Estate Investment Agent | BiggerPockets

Hard to give you an answer without seeing the property. Are there other homes in the area that are getting scrapped and re-built? For most Ground up construction loans, lenders will usually want to see at least $70+ per sf for rental grade finishes to $115+ per sf for higher price point finishes. With that being said, price per square foot will vary from market to market. 

All great and important points in this thread. I want to point out that providing Value is the MOST important in my experience. If you can purchase a deal on the front yet, dial in the renovation, and list the property slightly below or at the same price as older comps, you are providing value to a buyer. Put yourself in the buyers shoes though. Would you buy a property that sits on a double yellow that is fixed up, or opt for a property on a quiet street that is slightly outdated? In a seller's market, it shouldn't matter too much as long as the numbers work. When the buyers scatter, you need to look at external factors as well. 

It sounds like this is more than just an ROI, but an investment in personal enjoyment as well. $40k is a higher end bathroom remodel. I would get a few estimates before pulling the trigger. At the end of the day, if you have the funds to do a remodel that you will use, do it. It will add to the value of your home, but your ROI will depend on the rest of the house, the market you are in, and when you go to sell.

Hi Jackson,

Happy to connect! Sending you a message. 

Hi Jesse, most HML will have a doc fee. Some higher than others. Take a look at the BP vetted HMLs that focus on funding fix and flips: Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com)

Like @Jonathan said, give this deal a hard look into why the property has been sitting for almost a half a year. This means many investors have looked and all have passed. You can certainly call the listing agent and ask why it has been on the market this long. Being this is your 1st deal, I would walk this property with your contractor(s) before you make an offer. In regard to getting financing, look here for vetted HMLs that specialize in Fix and flip loans: Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com).