All Forum Posts by: Erik Larson

My RE agent (who is an REO agent for 2 banks) came with this: $130k 3bd 2 bath Vacant for about 1 month all windows busted, needs a full gut and start over he said $35k in work Says He could sell it for $190 to $197k Area of town isn't great, nothing in Zillow in 1 mile sold for over $190, on on the market for 45 days at $190. And he hasn't provided comps for it to me yet. He said I would need to tile the house, new kitchen, glass back splash etc. Which is pretty much what the one house at $190 has minus the kitchen backsplash. 70% rule rules this out right quick, but I'm being told (by him anyway) that this is how our market is in PHX. 70% would put me about $90k. Is it common to offer that far below ask for an REO? Or just a deal I should pass on and make note of for learning.

Mark Nolan thanks for this, oddly it was the reason signed up for BP but never could figure out where to download it, worked this time though. Thanks for tonight's reading.

Michelle Reynolds thanks for the info, I just joined up and hope to make it Thursday.

Hello all, I'm Erik. I'm from Chandler AZ, father to one nearly 5 year old girl that I felt my daily IT 12-14 hours days was robbing her of needed father and family time. My wife is a IT manager still putting in 12'+ and I left my final IT job back in August of last year. I took some time and went to Europe (thanks Octoberfest!) for a couple of weeks to try to do a IT cleanse, which didn't work. I came back and every time I applied for an IT job I hated the idea of going back to it. At the beginning of February I started the processes of getting a HELOC on our house we paid off in a little under 7 years and setting up my LLC in order to start doing flips. This all should come to fruition in the next week or two. BP has been a very large driving factor in my move to REI. I've read the Flip and Est. Rehab books and the Tax strategy books cover to cover, and I have not fully read any book in the last 22 years haha, but these I have.

I have a realtor that I've worked with for nearly 10 years up here (I say up  here as I lived in Tucson for 28 years prior to PHX), he's helpful kind of but not really helping me at this point, can't totally blame him as my money still isn't lined up. As I've started taking deeper looks around the PHX area I'm realizing there isn't many properties which would put a small damper on things but I'm only looking to flip 3 or 4 houses this year and solidify a 4 plex for cash flow. Maybe even a couple. 

The plan currently is to clear about 1/2 what I was making in my IT slavery and have fun while learning something new. I'm trying to build out my team, using contractors I've worked with on my own remodel of that house we paid off and looking for contacts to speak to/work with in the Phoenix area. I really want to build my wealth and have fun doing it.

Something odd about this for sure. Possible the LL is related or close to the tenants, doesn't want to anger them in some way, or yes is hiding something. Which contingents are still in play that she wants dropped tomorrow?

Welcome. I'm new too, actually reminds me I should do this as well 😀

Prices still rocketing or is the flip market that good? I'm assuming there is plenty of REI there snatching up the pre-hab's?

Originally posted by @Tim Ryan:

Because too many people on BP are telling newbie investors that wholesaling is the best place to start "and generate quick cash so then you can flip with the money then save that and then buy large apts and then retire in a couple years"
LOL

 Yep this is what I'm seeing as well. Sadly more than 1/2 the wholesalers I've come across in PHX are guesstimating and pulling numbers out of the air and don't have a solid line on the house in the first place.

Sadly with it being tax season he's only slightly easier to find than a Yeti (the furry kind and not my cooler ;) ) But I'll keep trying. The first flip will be all personal due to timing.

I haven't started the LLC but am in the process of finding who I can file though. I'd like to save on the taxes in any way I could but am still reading up on what can and should be done under the LLC.

I'm probably only going to flip 3 or 4 houses this year, I hope to do more, but 4 is my goal. I'm under the impression that there might be a tax savings (albeit small I figure) If it's a single owner LLC (Me only). So I don't have to start the LLC right off the bat, if at all.

Jamie you did answer what I was looking for, thanks!