All Forum Posts by: Chris Calabrese

The closing attorney will need to see your articles, which only list your attorney's name. I believe he will then need to sign a resolution giving you (or other members) signing rights for the sale based on your operating agreement. At least that's how I understand it. I just filed our articles with my name and my partner's as the organizers so there's no doubt. Maybe you could file an amended one.

Your contractor or someone knowledgeable should be able to get a good idea from a visual inspection. Unless the hvac looks great or you know it's newer, assume you need to replace it. Also check the ductwork if it's in a crawlspace.

Pop the electric panel cover and see if anyone's messed with anything. If not, the rest is probably ok. Also check the attic/basement/crawl for junction boxes or faulty wiring.

Plumbing is a little harder to diagnose without the water on, but it's also pretty obvious where there have been leaks in the past. Look over copper piping well as its prone to pinhole leaks. Water heaters are a crapshoot but not too expensive to replace.

Yes, definitely thinset. Mastic never sets up quite right, esp. for large tiles. Just mix small batches so it doesn't get too dry. My best tip is to lay each tile touching the previous one, then slide it out to create your spacing. It will prevent you from squeezing thinset into your grout lines and save tons of cleanup time before grouting.

Tony, we're averaging just over $30k per flip, which is our target when formulating offers. Just recently, we've been lowering the target a little bit to around $25k to account for the more competitive environment. This is on houses that retail for $115k-$150k. Only you can decide how much you need to make for yourself.

I just put my company name as the seller and sign my name. Then just submit your LLC articles that show you're a member.

The seller generally doesn't ask for the resolution, but the closing attorney will likely need one to draft the closing documents.

This is exactly why they require 10% with cash offers, to make sure that you are legit and can close, and not just "intend" to find a buyer. Once your offer is accepted, they will ask for proof of cash funds anyway. I use private lenders, and have had luck with having it considered cash, but I submit my lender's bank statement with a letter from them stating that I can use the money with no appraisal contingency and that it can be wired with 72 hours notice. I'm not sure if a HML would do this unless you had some history.

Tony, I think your attitude is great and you're way ahead of most new investors because you have a plan. I was just saying that if you're splitting 15k 2 ways, that's only $7500 a piece, and that's not a lot of profit for the time, stress, and risk that you put into the deal. Also, if your ARV is off by $5000 and you have to replace a heat pump you thought you could save, there's half your profit right there. Just that with a tight margin, your numbers need to be conservative and well researched.

If your partner is a contractor, he could probably do a kitchen remodel and turn a $7500 profit with no risk. But then again, I work in a partnership as well, and as long as you get along, I like it because you can keep each other in check and have a second set of eyes on everything.

Yup, stick with it, just be patient. You don't want to jump in over your head on your first deal, or it could derail your whole business plan. I'd say that for every house we buy, we look at 20 and make offers on 5 or 6. If your first couple of offers were accepted, you probably would have been paying too much.

I agree that 15k is tight, esp. with a partner. With that thin of a margin, you had better be pretty confident in all your numbers - rehab, holding costs, and ARV.

We tend to list at the top end of the market. The main reason is that our houses are generally one of the nicest in the neighborhood when we're done, and we've found that people are willing to pay a premium for quality once you get them in the door.

I always suggest to investors, or any home seller, to list at the highest price you can that will still generate showings. Once you get buyers in the door, you can always negotiate, but if no one sees the house, it doesn't matter how it's priced.

You can ask agents for your active comps how much activity they've had, or even pretend to be a buyer and try to fish out some info.

I've seen the same thing happening here lately more frequently, but I haven't been able to identify any of the individuals. It's really aggravating as the good deals are few and far between, and there are "investors" coming out of the woodwork trying to flip houses. I certainly plan on reporting anyone who is knowingly violating the rules.