All Forum Posts by: David Park

Quick survey for Flippers.

I'm an investor and an agent licensed in Delaware, Pennsylvania focused on working with Flippers. I'm honing my agent side to serve flippers better by creating value. So I wanted to get a quick survey and inputs on things you would want.

Most of the flippers have their own ways of getting their own deals, and need us for listing. From buying the house to selling. I'm thinking one of the best value add is to provide a list of connections. 

List of contractors that show up to HD/Lows at 6am in each location listing (specialty, pricing, licensed, vehicles, references, what my flippers said about them at his last point of contact) 

Asset base loans connections, lawyers.

Could also do MLS auto emails for properties they are looking for if needed.

What else would you want to help your business?

PS. Already read agent's guide and is incorporated into my business.

2 houses are pending from last week. I'll update the sheet when they are actually settled. As for this week. Here's the list.

I would recommend Carpet & Tile Mart on 230 N Dupont Hwy, New Castle, DE 19720

Good price and selections. The only thing is it's in DE. Which also makes it cheaper with no sales tax.

Obviously there are some bad areas, I have an accurate map if you guys need it. I found most of the maps out there to be bogus. PM me if you want it.

There are jobs that should be created with the CZA bill in Clayton near Wilmington. Regulations must be in place by October 2019 and should pump about 1 billion into making this happen. Lots of blue collar construction jobs. Also, the patent law rules changed from the supreme court, which would make all the companies registered in DE, having to fight patent laws in the state registered. So DE is a long shot #2 in this area, with TX being #1 right now. With this rule change, DE should climb to #1, but there is some blockage as we are short on judges. But this would create alot of inflows of outside lawyers to the city. So Riverfront should be pumped with more money as the lawyers would get bored after their day job. 

Also the Riverfront areas that are not being used are breaking ground as well.

The catalyst for some of this is the DE budget. 

ARV( After repair value) challenge for Delaware and Pennsylvania in the 3 counties( New castle county, Delaware county, Chester county)

The reason why having the right ARV is so critical is because, not only is having the right ARV needed to know your wiggle room. For flippers time is really money if they are using hard money, etc.

So, when it's time to list. A lot of houses want to have the highest price possible, then once they see that no one is biting, they lower the price, and eventually take the market price. This does 2 critical things.

1) Wastes a lot of time (could be months of interest paid)

2) Wastes the new girl effect ( The new house in the market is most viewed the first 2 weeks, after that buyers start asking whats wrong with the house and the seller starts to lose the upper hand)

You can still have the highest price that the market can support by creating a bidding war. As long as its not too low to have bids that you wouldn't take serious. 

If you have the right ARV and the right marketing execution. Then the house could be sold quickly, and you can move onto the next one.

So the challenge: 

Get 20 examples each week as the house comes to the market.

Guess the price they will sell for.

House must be sold within the month of being listed. (The reason for this is prices change with so many different factors, also if it's not sold within the first month it wasn't done right. Especially with the inventory is at 10 year lows now days)

Get 97% correct rate with (+/-)5% error rate from actual sold price.

Get 95% correct rate with (+/-)3% error rate from actual sold price.

Keep in mine the examples that I use are my opinions and should not be used for anything else.

7/8/2017 20 houses that came out this week 

Wish me luck!

Connect with wholesalers, they have a bunch of leads that they actually visited and 9/10 are looking to list. 

The payout to the wholesaler might be tricky since they are probably not licensed. 

Philadelphia Real estate Division, there is a # I can't post here. PM me if you want it. The number is also on officeofphiladelphiasheriff.com . I would try to call them for more info, as it's best to hear it from someone dealing with these kinds of questions on the regular.

Josh, I used to live in OC, and now back in the East Coast. The prices definitely makes more sense here for cash flow. Let me know if you need any help, as I have access to the MLS that covers my area.

https://www.officeofphiladelphiasheriff.com/en/rea...

This video was helpful. It's about 30 minutes long and shows the POV from the law. Lot of nuggets.