All Forum Posts by: Leigh C

The major risk I can see is as follows.

The 20k receivable becomes delinquent and he is forced to lien and then foreclose the property.   I'm assuming he permits the rehab to begin with.

During the foreclosure process the house lacks insurance and it burns to the ground making the asset not worth foreclosing.      I'm sure there are other ways for this house to drop 80% or more in value so I'll yield that he has some risk.   However nothing to the scale as a green investor hiring a greedy contractor after purchasing from a wholesaler.  

I'd wager the contractor pulls out fine more than 99% of the time.    The investor in this situation might break even or profit 10% of the time.

When my accountant informed me it isn't capital gains that i was a dealer.   

:(

50% to a contractor...I'm going to fall out of my chair!

Ashley, it all depends on the type of flips you will be doing.    Some fall in love with what they do on TV and bring a 30k house up to 200k, typically by putting over 100k into it.   Others do typically what Fannie Mae does and just fix whats wrong (or what they feel is wrong lol) and new carpet/paint.    The style you choose typically is determined by the actual asset.

With that all said, if the flip isn't extensive.    I mean EXTENSIVE I wouldn't even consider giving a contractor 50% of anything.   

In your math you are thinking about doing 20k in repairs with 15k going to a GC.    Is that GC really saving you 15k by not hiring someone for a fee?    In my neck of the woods a GC at 5k for a simple 20k job would throw in a lap dance and even if that GC isn't perfect he is still going to not screw up the extra 10k you saved.

As green as you sound I strongly urge you to learn a lot more from a local investor before you deal with wholesalers "sharks" and GC's "typically even bigger sharks".    They will smell the blood in the water.

Could do 110k close in 3 days..Too many new houses to compete with on that road to get any more out of it.

Seems like you should be able to call someone....like the water dept or police or something to hold the other people accountable.     

If we act now do i get a 2nd one for just the price of additional shipping?

I don't care either way if the property is occupied or not.    We consider hostile Tenants as a 2000 dollar cost repair cost but otherwise it makes no difference to us.

Feel free to post here or PM me with properties that fit what we are looking for.    Thus far I've only received properties outside what I clearly posted which is extremely frustrating.    I'm not interested in getting weekly spam

@Bruce McCray

see above.    

@Bruce McCray     Been doing this too long to be anything other than realistic.