All Forum Posts by: Drew Leonard

Thank you, Ben and Michael. I appreciate the additional insight. 

More from a liability standpoint, his comment was really towards the standpoint that as a licensed GC, I would have a higher level of knowledge regarding the work performed and disclosures. And so if you weren't careful, perhaps you could not disclose something you should have to in order to make the sale. I guess that depends on what kind of flipping operation you run, but as a person with an operating contracting firm, I don't see myself falling into any sort of shady practices along those lines. But having not flipped before, perhaps it's easier to get tripped up in this regard than I realize. 

Thanks, everybody. @Jeremy, out here in the Denver metro there is no such thing as a $150k house so the savings on each deal could easily be 5 figures per deal. As a would-be part-time flipper, keeping $10+k in my pocket, while not necessarily a make or break amount, could be the extra money that gets me comfortable with pursuing a deal. 

I have recently started to consider flipping as I'm already an investor and a licensed GC. I don't have a large funnel for off market deals so I was considering becoming a licensed agent such that I could go after deals quickly, keep sales commissions, etc. In discussing this with an agent I'm close with, he advised me that pursuing that type of model could pose a conflict of interest in some cases and/or become a liability for me, and perhaps is not worth the headache. In trying to run numbers on a few flips and make numbers work, it seems like a no brainer that being an agent would benefit me in this pursuit. Does anyone have experience with this such that they can share the pros and cons?

Thanks,

Drew

 Thanks, Jay. Especially for my first short-term flip, I was thinking a preferred return setup such that they get 100% up to a certain amount and can get more comfortable with their position in the deal. Appreciate everyone's comments. Not sure this is the time to be starting in this spectrum of real estate, but the wheels are churning nonetheless.   

Thank you. As far as the percentage return, I was referring to the actual net return they'd typically expect (eg 10%, 20% on their money).

I'm an investor focusing on value-add multifamily (out of state), but I'm also a licensed GC performing residential interior remodeling work. I'm starting to evaluate flips but am looking for a JV partner to fund them in order to eliminate the interest carrying costs. Does anyone have advice on how to find such a partner or have interest in pursuing a JV arrangement? And what do JV partners typically expect for a percentage return?

Thanks,

Drew

Stabilized 5-plex within one block of DSM’s Drake University. https://b1iw.app.link/5aqVQXdY... https://www.realtor.com/reales...

Definitely not hard and goes pretty quickly if you don't have a huge area. I did this on my 120 year old building last year. With the equipment rental from HD and other supplies, I think I was in for less than $250 for a 200 ft2 room. Sure beats the linoleum it had or laying down carpet. Take your time, get enough sanding pads, and you can knock it out if you want to. 

Chris Fisher with PMI Central Iowa. I'm out of state, and they've been great to work with.

Drew Leonard