All Forum Posts by: Joshua Houchins

no your numbers and stick with them. You win some and lose some. All the people that are paying to much will be out of business before to long. I get my number and "let it rip tater chip".  Keep pressing you will do ok.

I make my own I would be willing to share. But I always say the first go at an investor should be 3 min or less. Once they are interest continue dialog at that point.

@Connor Williams I have found over the years realtors are a strange bread of individuals there are a lot of normal ones but the vast majority are strange characters.  But anyway I would keep calling all of them Some will  say no or they think they are to good for you. I have had that happen when I first started now those agents want my business and of course I do not respond or reply that I am currently working with someone else.  You have to be relentless print ever freaking realtors name and contact info off google in your area and call them. That what i did eventually you will find a good one and one who wants to work for you that is important .....not just slap a sign in the yard and put it in the mls and cross there fingers.

Reo property are usually all on the mls in my state anyway. Most brokerage firms will have a search engine of the mls on there sight and you can do specific search for them that way.  

Also when you do find a few brokers to work with get them to set up searches that will email you all homes that fit your criteria as soon as they are active in the mls  ie "as is" "needs tlc " " reo" etc etc.

Also Reia are ok some are some aren't alot of them are people preying on newbies some are are really good.  My advice would be not to share with them what you shared in in this forum attend a few and just sit back and watch who the players are and move with easy until you know what the group is about.  "The first to speak is usually the first to lose". I think you got the right game plan to go crazy searching for deals and make sure your math is extra conservative and you will do well.

@Zoran M. I guess the main question is does he build spec or custom?   The custom home market is tough business to be in but can be profitable.  If he is building spec I would just set up a small site showing his work etc. but why spend money advertising your in the spec home business? That is what the brokers and agents that sell your homes are paid to do?  Unless you are doing the entire development ie site development roads etc but if you are a featured builder in another land developers development let the agents do the work.

If he is a custom builder I suggest like above work on SEO to generate business most other forms of advertising are a waste of money.

Hope this helps. Good luck.

@Robert Ehrlich I agree with above not sure on the va but maybe hard money and a va as the exit stragity not sure the exact regulation.  But when dealing with most banks they are a person behind a desk and have no clue go find the most expensive contractors in the area get them to give you quotes then use those as a negation tool with your offer.  Not sure how big the unit are but 4 systems is going to cost you a min of 14-15k.  Also would have to understand rent rate property value erc to determine the deal. Good luck

@Account Closed there are several questions that must be answered to give you a correct response.

1. What are comparable lots selling for?

2. What is cost per sqft to build.

3. What is the average price per sqft for new homes going for in the area?

 Also I do a lot of tear downs and hire a GC never do a profit share pay the GC a flat rate and you pay all the subs and buy all material will work out a lot better for you! I pay 25k per house just to mange. 12500 rough in 12500 upon co. 

I'll give you an example here I can by a tear down for 250k rebuild for 250k and sell for 750k

So you get 250-250-750.  Obviously the lower the land  / tear down price the better.  

So in you case if resale is 400k ---80k lot and tear down---you could really not be in the house for than 175k construction to make the deal work.  Hope that helps good luck!

@Tom Giles I use the 40-50% rule to figure if it is a good deal.  From your figures looks like your actually in the property for 89k purchase and 30ish in rehab ===129k  I would assume you would list the property with an agent to sell it if that was the route you went? So you would potentially be losing money not figuring in the interest paid closing cost taxes etc (unless taxes are escrowed in your payments) If I understand your post correctly.  I would say rent the property unless you needed the cash.  Hold on to it for 5-10 years and get into the green on the deal would be my suggestion. From an investors stand point your 3.5% interest rate is "free money". Let someone else finish paying your mortgage and capitalize on some monthly cash flow.   Good luck !

@Account Closed I am not sure if you are married or not but I always ask myself "would my wife complain about this?"  If the answer is yes.....pass..... Fact of the matter homes should appeal to the wife... Most of the time the final yes or no will be made by the wife.  

But numerous items you listed are a negative ..... Double yellow lines out front, across from a school, power lines, shopping center, apartments behind, back yard is backing to interstate, etc etc is a pass for a flip property unless you can get it real cheap and sell it well below value for a profit.....but in general it will take a little longer to sell.  Just depends on your market kind of a general question. Hope that helps.

@Connor Williams I think you are set up and have a good game plan.  Flip a house put some money back for your next flip also buy some rentals along the way with your profits. gREAT GAME PLAN!  Really the only way to go.   I would start by contacting a few brokers telling them you are a investor looking for deals that fit "x" criteria and you can close fast,  I would also get a list of every reo in your target market and start pumping out offers,  wholesalers maybe .....,just do your homework most wholesaler under eatimate repairs and over estimate arv.   Maybe start running cash for home ads or direct mail.

But finally someone new in here actually has the right game plan out of the gate! Flip take portion of return buy a rental repeat for 5-7 years successfully you will be sitting pretty my find good luck!

@Tony Ngo I would contact his current landlord I would say if he pays his rent his personal matters should not really matter.  Now if he doesn't pay and has issues I would just say pass.  But in your case the section 8 pays 100% of the rent and he does not destroy your property or cause trouble in his current residents might not be a problem.  It is a tough call you just gotta go with your gut on this one.