All Forum Posts by: Bill J Fay

I agree with @Nicholas L. A house hack would be a great start. Although if you come across a deal, wholesaling could also be a great start. You'll need about 20% down + fees if you want to work with Hard Money Lenders for your 1st flip. 

Looks like you are taking all the right steps here. Ask your agent/contractors for a referral engineer. They should have someone that is legit but that also works with investors. May need a few bids on structural unless they have rock star reference. Not sure about Indy market, but foundation issues are relatively common in 1800s homes. Make sure you fix it with a licensed contractor, these can cause headaches down the road if not fixed correctly.

Red Flag. They will nickel and dime you along the project. Be open with contractors and talk to them about pricing over the phone. Have them walk current or finished projects to get an idea of what they might charge for future projects. At the end of the day, don't waste the contractors time, but do not pay for a bid.

Be wary of lenders offering 100% financing, especially when you have no experience. I would recommend partnering with someone for your 1st couple deals to get started. Many Hard Money Lenders will work with 1st time investors but they will want to make sure the numbers check out and you will need to put down around 20%. 

Sounds like you have received some great feedback already. Many investors wait to put their flips on the market until after the holidays in Colorado. I would chat with your Agent to see what they recommend next year. It is super important to put your best foot forward the day the property hits the market. Overall, it looks like a beautiful property but the listing is stagnant and raises red flags no matter how great it looks. I would explore renting it out for a year or drop the price heavily to cut ties and sell tomorrow. 

Tub 100%, unless comps say otherwise.

As a lender, we do not lend on flips in the North half of NJ. We do however lend in the bottom half. Tougher when you get closer to the City.

Absolutely agree! All about the buy and executing your gameplan. So much headache can be avoided if you have the correct spread.

Are you asking on the front end or back end? To avoid delivering a poor property you can hire a home inspector on both ends. If you find your contractors are missing repairs, you can a hire a home inspector that is very thorough before your renovation. You want your inspector to find as much wrong with the property before you start so you can correct those items. Ask your Agent for recommendations and ask the inspector if he works with other investors. You can have the same inspector come back before you are ready to list. You can always share the 2nd report with the prospective buyer and show the items that were corrected by your licensed contractors. 

You can easily check prices online. I usually like ordering Home Depot supplies online and have it delivered directly to the property. Make sure it's a day that your contractors are there. Amazon, Wayfair, Floor & Decor (if in your area) are all great online shopping sites as well. Don't waste your time driving around looking for deals in person. Your GC should have great insight into warehouse/wholesale items like appliances, cabinets, flooring, etc. as well.