All Forum Posts by: Chad Shultz

Jack,

Good for you. Sounds like you are on the right track. I, too, am not a fan of using other people's money, unless I absolutely have to. I started my first project, years ago, with $35k of my own money and have not looked back. I am fairly certain I only ever used "hard money" for three total projects and I am above 20 projects now. During my flipping time, I have brought in a few people to mentor, but I think San Antonio would be just a bit far for either of us to travel to the other. I would imagine you will find someone in the local area. If you don't get any good prospects from this forum, try looking around at your local REIA. I usually connect with newer people in mine all the time. Cheers!

Personally, I like home warranties for a personal home purchase, but only if they are part of the transaction being paid by the seller.  I had a negative experience with a company, that actually turned out really good, but it was an effort.  In a home I purchased, the microwave died, so I called the home warranty company.  They said built in microwaves were covered, so they offered to take care of the issue.  I paid my $50 deductible and waited.  It took a while to get someone to come out and look at it.  (I mean really... who fixes microwaves?)  The home warranty company's whole goal is to fix anything possible and not replace anything.  Turns out, this was a countertop microwave that the previous owner built in, but it was still built in, so the warranty co agreed to replace it, since it couldn't be fixed.  We went around on it for weeks, because I just wanted the exact same microwave.  They insisted the exact same one was not available, even though I sent them links to where it was being sold.  Eventually, I kept refusing their offers of replacements and they gave up trying to replace it and they offered me a cash reimbursement.  I agreed, because I knew I could get the exact same microwave.  They ultimately sent me a check for about $450 to cover the microwave.  If you subtract my $50 deductible, which I had paid, and the cost to purchase the replacement, which shipped directly to my house for only $180, I made money on the deal.  Since it was a countertop microwave, I only had to remove one piece of trim to make the swap.  Moral of the story:  If you don't mind playing their game and jumping through hoops, you are covered for surprises on your personal home purchase.  As an investor, I never get a warranty on any property I am involved with.

@Shazie Park - You can search demographic and all kinds of other information on the City of Daytona Beach's website and/or sites like Zillow, etc.

@Shazie Park:  Mostly, I would say, "yes" to your question.  There are a couple small pockets of better area, but overall, values are less in 32114 and most are not well kept.  The same house in 32114 or 32117 is a world of difference on the market.  If you are doing rentals, be ready for lots of turn over, generally speaking.  You can find a few near the college that you might have a better rental term with.  It really depends on your exit strategy or if you are holding.

I tend to be a person who gets educated about the things I am interested in, then I use that education in my own ways.  I also strive to continue learning as I progress in my new venture, whatever it may be.  Having done about 20 properties in recent years, I certainly don’t fancy myself the overall expert in home renovation.  I do know how to set myself apart from the competition though.  I think is it important for everyone to realize they can always be learning and helping to make investment real estate a better atmosphere for us all.  Here is what I have learned along my journey:

The word “flipping” has garnered a bad reputation among the “lay person”.  In general, when you say a house was flipped, people put their guard up, or they get stand-offish, or sometimes angry.  I have had potential buyers cuss me out on the phone because they thought I was a “flipper”.  There are several reasons for this, with the most obvious, in my opinion, being the worst among us have made it difficult for the rest of us.  Like any other venture, you will encounter throughout your life; a few bad apples will ruin it for the whole bunch.  Many people get into the different investment aspects of real estate without learning the ropes and they may do unethical things.  In real estate, as a licensed Realtor®, we are obligated to put the public interest above all others.  We must do right by the customer, even if it means a lower commission, or even worse: Losing the deal.  We are bound by a thing called “Ethics”.  The same should be true with investors.  In the long run, a quick buck is not worth losing your livelihood or taking that livelihood away from everyone else who is willing to do it ethically.  I know; not everyone will listen and/or agree.

All too often, in the mostly unregulated world of flipping, wholesaling, contract assignment, etc., it seems these ethics do not apply to everyone.  While these types of real estate investment are not currently regulated in the State of Florida, we should all do our best to abide by the same ethics code as a Realtor® would.  By doing this, not only are we completing better transactions with the public and improving our image, but we are helping to preserve our investor friendly atmosphere.  This suggestion holds true for most of our 50 states around the USA.  It really would not take much in the way of complaints from the public to cause a State Legislature to enact laws preventing investors from performing in ways we do now.  Don’t believe it?  Check with your investor friends in Illinois, Oklahoma & Virginia where it is illegal to wholesale*. (*The Motley Fool; “Million Acres” article: “The Pros and Cons of Wholesaling Real Estate”, updated June 11, 2021.)

Get educated through Bigger Pockets, your local REIA or other reputable real estate mediums. Practice your craft, learn and apply ethics to every situation you are involved in. Don't let others judge you or steer you in the wrong direction to make a quick buck. If we all do our part, the right way, it will be a better business for everyone. Take the high road and put the customer first. Don't "flip it", you're better than that.

@Candice Scales:  Don't worry about being new.  Everyone starts somewhere.  I prefer to use just my name on a mailer envelope, so it is more likely to be opened.  Like Jerry said, a "marketing mail" from a business is more likely to be tossed in the trash.  It also depends on who you are marketing to.  If you are farming foreclosures or people in general, consider using an oversized envelope that looks more like a birthday card or card for an occasion.  Those are also more likely to get opened.  Someone in foreclosure likely does not want to hear from anyone "official", so a letter that looks like business may get tossed, because they are ignoring the lender or someone similar, etc.

@Candice Scales: Your LLC can still protect you, even if you don't have the name on the mailer. I find, using a personal name garners a better response, however, when I put pen to paper on a deal, I always use the LLC, or a Land Trust owned by the LLC. If something legal comes up, requiring your protection, it is the contract and the names on that contract that generally be involved, etc. Buying from someone is not likely to get you into a legal problem anyway. It is selling to the next person that you need to be more careful with.

@Bernardo Marquez:  I would say: Always be concerned, on any deal.  This keeps you at the top of your game.  The last thing you want to do is get complacent, or just follow the "crowd to the exit", only to realize it is a cliff they are walking off.  You can find some excellent deals in "sketchy neighborhoods" as you put it.  If you are looking for flip opportunities, I would try to avoid the areas where it is almost exclusively rentals.  If you are looking for a hold, rentals are probably better.  That said, one of my recent projects, meant as a flip, sold to a buy and hold investor who immediately rented it.  It all comes down to the "buy".  If the price is right on the purchase, you will likely turn out fine.

@Sarah Cowns:  

Good morning. I current am the leader of the Volusia Chapter of CFRI. (CFRI is chartered by the national REIA.) The main group runs out of Orlando, with six sub-groups: Volusia, Brevard, Orange, Osceola, Seminole, Lake. The Volusia meeting is last Thursday of the month, in Holly HIll. This month, it will be Sept. 30th. If you are a guest, or non-member, it is $10 to attend. However, that will be credited if you decide to join. Right now, we have the normal yearly membership and/or a 3-month trial version. More information can be found on the site, but BP doesn't allow posting links, so I sent you a connection request and can send through there, if you want to connetc. I would be happy to chat further.

@Jennifer Williams:  Thank you for the comment.  I am not sure why all the photos I posted don't show up in the forum article, but I have a few other finished pics on my profile, if you wanted to see the end product.  Cheers.