All Forum Posts by: Gregory Childs

From a personal perspective I always like to read J Scott's postings - as a fellow rehabber I really like to get his perspective on the business.

I also enjoy the interaction in general. I work from home most of the time and feel that the time I spend on BP is working "on" my business, not necessarily "in" my business. That's a refreshing and invigorating change; especially when I have been dealing with awol GC's etc all day! I feel as if I am sharpening my sword as I read the threads.

It is also great to see things from other people's perspective - in a question about a rehab estimate three of us came up with a $10k estimate (+/- $350) but we came to it from slightly different angles. I really examined everyone else’s methods to see if I was missing something in my estimating process. The poster got his answer - but I got a little wiser too.

One of my favorite threads was “Advice Wanted...Good Deal or Not?†J Scott, Steve Babiak, Bill Patterson, Charles Perkins “et al†all pitched in and the advice was succinct, intelligent, and pertinent. Certainly with that group of advisors a newbie investor can’t go wrong.

Anyway, it is a pleasure to have new friends/colleagues all across the US. I like associating with people smarter than myself! Hat's off to BP.

TTFN,

Greg

Sure, call them - then post back what they told you. This forum is all about learning from each other!

My guess is that they will tell you "it depends"
1. on your registering with the State that you are in business of banking type transactions (using OPM and paying returns) and..
2. that you follow the letter of the law in your dealings (disclosures, forms, filings, etc).

We looked at doing a PPM (private placement memorandum) a few years back and backed out based on the regulations involved.

Money is a VERY regulatorary environment - but please call and let us know what you find out; I would love to know!

Knowledge is power, speculation is gambling!!

TTFN,
Greg

My understadning is that you would run foul of the securities aparatus - unless they are truly "at risk" investors. You definately need to consult an attorney before you move forward.. jail time comes to mind if you mess up.
I see a bunch of "private money" webinars advertized by the gurus - might be worth checking out someone who is in the business. I am planning to go to a seminar put on by Pete Fortunato in Tampa in Dec - but that is more on notes/paper than borrowing funds for interest.
TTFN,
Greg

If you send me an email I will send you a basic spreadsheet I use to quickly look at a deal. It's not to be used as a decision maker - but it gives me an idea if I should look further or pass - based on the ROI. FYI, I don't look at anything withoout a 30% ROI (especially in this type of uncertain market). I also use it to formulate my initial low-ball offer to see if they will bite or counter.
TTFN,
Greg

Just one comment - an LLC is only as good as its operating agreement. I was at a LLC seminar a few weeks back discussing the protection of a Wyoming (multi member LLC). The seminar was put on by Jeff Watson Omega Wealth protection. I am sure you can find him on the web somewhere.
TTFN,
Greg

You're right - we use GC's to rehab all of our properties.
Our responsibility focuses on locating the right property, project management of the rehab, and then get her sold!
We keep it very simple.
TTFN,
Greg

Two weeks are up - have you called him? Accountability is a key element of successful investing!
TTFN,
Greg

We completed 38 flips in the last year or so. About a dozen we flipped to investors, the rest to retail buyers - most were in the Atlanta market, but included four in Phoenix and one in Chicago. Our focus was buying REO properties, with an initial purchase price in the $40-75k range and average gross profit of around 27% after commissions, etc. Our rehab costs ran $7k - $25K depending on condition.

We currently have two left in Atlanta and one left in Phoenix that are rehabbed and on the market.

We we weren't sure how the market would turn (once the Obama Bucks program finsihed) so we went to cash over the summer and have been sitting on the sidelines. Looking to get back in the fall as we believe that priices are a little more stablized - with mortgage rates so low these entry level type properties are fairly simple flips if rehabbed correctly.

Interested to see what everyone else is up to.

TTFN,

Greg

Assuming the house is 1,200-1,300 sqft the following seems reasonable:

Walls
Wall Prep Sand any rough areas for paint application. $900.00
Priming Spray or roll entire surface with primer. $1,800.00
Finishing Apply two coats of chosen color of paint. $1,800.00
Walls Total: $4,500.00

Electrical
Wiring Replacement Shut off main power. Remove existing outlets/switches. Rewire to all recepticles. $3,300.00

HVAC
AC Replacement Remove existing A/C unit. Replace with new condensing unit with electrical wiring and insulated copper lines. $2,050.00

Other
HotWaterTank Remove existing water tank. Install 40 gal. energy saver tank. Electric and gas connections will be made on site. $525.00

Grand Total: $10,375.00 plus landscaping.

Just my guess - not sure if I can be any more accurate.
TTFN,
Greg

T.A.R.P .(or any similar program) comes to mind... a program that rewards institutions for making bad business decisions.. using borrowed funds to pay off the dilinquency. Please tell me I am dreaming.
TTFN,
Greg