All Forum Posts by: Dana Brown

Hey everyone. We were searching the site for any post that outlined the "due diligence" process and couldn't find anything that applied. Does anyone have a step by step process or form they use and are willing to share??? 

Thanks for reading

Thank you all for the amazing responses. There are may perspectives and is still clear as mud to us but we'll just dive in and see where it goes and what we can learn. Thanks  to you all!

We want to do renovations but we don't personally want to be swinging hammers. We will  plan to accept less profit and have a contractor do the work.

For those of you who consider yourselves pretty much dialed into the process, what does your day look like? What do you spend your time doing and in what proportions. OR what do you know is the best way to spend your valuable time?

After much thought and council we have decided to establish an S Corp for flipping. While I'm sure new questions will arise. The burning question I have at the moment to you             S Corp(ers) is... How much $$$ is a proper initial contribution? How much is too little or much? Is it dependent on sales prices in the market? Thanks for your thoughts

Mark and Dana

Portland, OR

Relatively new to flipping/rehabing. The rule of thumb we always hear is 70% of the AVR and rehab deducted from there. In our market the median sales price is close to 300,000. I understand in a <100,000 market how that rule of thumb is super important but in our accelerating market we are not seeing people willing to walk from 90,000+ repair costs. We are also inclined to think a 30k profit is acceptable and reasonable. It seems that  an 85% ( - ) repair costs. would still amount to a successful 90-120 day flip

1) With regards to the 70% rule, does the dollar profit ever over shadow the percent rule? 

2) Does anyone have any good advice for still succeeding in an accelerating market?

Does anyone have a set group of standard questions they ask when talking to prospective conventional, private or hard money lenders? How do you orginize that information?