All Forum Posts by: Brett Tvenge

Quote from @Brett Tvenge:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $305,000
Cash invested: $13,000
Sale price: $379,900

305k purchase price
4k closing cost
4k holding cost
13k remodel
13k closing cost on sale

380-339k = 41k profit

What made you interested in investing in this type of deal?

This is what we do...

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

10% down, HML

How did you add value to the deal?

Spruced it up, new carpet, new interior paint, new countertops, painted cabinets

What was the outcome?

Made some money

Lessons learned? Challenges?

0

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm the agent on the sell... used are normal wholesaler, contractor, and HML

What were your HML points & interest rate?

Quote from @Brett Tvenge:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $305,000
Cash invested: $13,000
Sale price: $379,900

305k purchase price
4k closing cost
4k holding cost
13k remodel
13k closing cost on sale

380-339k = 41k profit

What made you interested in investing in this type of deal?

This is what we do...

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

10% down, HML

How did you add value to the deal?

Spruced it up, new carpet, new interior paint, new countertops, painted cabinets

What was the outcome?

Made some money

Lessons learned? Challenges?

0

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm the agent on the sell... used are normal wholesaler, contractor, and HML

If you had a 10% HML, that's 30.5k down of your own cash. Plus the CC make it 34.5k. Add in holding and reno, that's 51.5k cash out of pocket. Where did you come up with 13k?

Quote from @Brett Tvenge:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $305,000
Cash invested: $13,000
Sale price: $379,900

305k purchase price
4k closing cost
4k holding cost
13k remodel
13k closing cost on sale

380-339k = 41k profit

What made you interested in investing in this type of deal?

This is what we do...

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

10% down, HML

How did you add value to the deal?

Spruced it up, new carpet, new interior paint, new countertops, painted cabinets

What was the outcome?

Made some money

Lessons learned? Challenges?

0

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm the agent on the sell... used are normal wholesaler, contractor, and HML

If you had a 10% HML, that's 30.5k down of your own cash. Plus the CC make it 34.5k. Add in holding and reno, that's 51.5k cash out of pocket. Where did you come up with 13k?

So I am going to be doing a major renovation on a unit. Current rent is $1150 but I believe I can get $1500/1600 if I ball out on the renovation. My question is what type of hard surface countertop would you use? Granite, Quartz.. or am I being stupid?

Thank you Wendy.  Scottsdale, West valley, Phoenix, Peoria, glendale

Thank you for the input gentlemen, I appreciate the feedback. The concept has potential and could use some refining. 

@Marty Boardman this contract structure is way different than involving multiple entities. It's strictly between a flipper (contractor) who has the capital and abilities to do the work and the homeowner. The home owner isn't a partner, they're a customer who agrees to hire a contractor. The homeowner benefits greatly since they have a professional contractor who will renovate their home without it costing them a dime. Essentially the future buyer pays for all the work and materials of the flip.

@Brett Tvenge I am in Ontario Canada, we need 20% down for a secondary dwelling. I agree there is always a risk you do all this work and it doesn't sell, just like any flip. At that point I'd make a cash offer to the seller for the return that I guaranteed.

The way the contract is structured the contractor is being hired by the seller to perform the work.

@J Scott the contract has been vetted and it is fully legal. The seller and contractor both have a mutual interest to sell the house for the most possible while doing the work within a few months and spending on renos wisely. The owner has a say, but ideally they will trust the contractor with decisions. I hear ya it could turn sideways if you have a difficult home owner. Relationship and trust building is key for this strategy. 

Ideally properties that have clear title are the safest route to avoid any issues. 

Hey all, wanted to share with you my house flipping strategy. I'm confident that this strategy is the future of flipping real estate. Buying houses to flip is costly and time consuming. Why buy when you can flip without owning the property?

Looking for a SFR to live in for now that'll make a decent rental down the road… to answer the previous questions:

What size property? 6,500+ sq ft lot
How many beds? 2+
How many baths? 1.75+
Pool? Yes, must have! 
Also need a garage for my motorcycle. 
Schools? No, just me + 2 dogs
AirBNB a room or two? No
What price range? ~$400k cash 
What part of Phoenix? See pic (but stay north of Bell Rd.)
What's your timeframe? +/- 1 month

A great example is currently listed at: 3501 W MICHELLE Dr Glendale, AZ 85308

I have my first fix and flip under contract in Glendale and looking for contractor/vendor recommendations while I am still in inspection period. If anyone has referrals that would be greatly appreciated and I would love to connect. Thanks in advance.