All Forum Posts by: Evan Wiesner

When I look at a property that old I will pull all properties built up to about 1970 and then separate them by style and features. An appraiser will do the same when you go to sell it.

There are a number of companies who can do that. Vineyard Services, Alacrity, Knipp Contracting, Asons Construction etc. Look up a couple and do some due diligence to see which one you think would handle your projects well in that area. I don't know which ones have a footprint in KC already but I'm guessing more than one.

These are all former property preservation companies (for the most part) that built networks of contractors helping banks secure and clean up properties before they were listed as REO's. The natural progression was to use those same contacts to actually build remodel networks, and some have made the transition better than others. At the same time, not all of their national coverages are equal so you have to learn who is good in your market.

I would look for a national vender for rehabs. There are a few in that market who can take over your deals and they are reputable and already established. You'll pay a little more, but in most cases you'll end up with decent work as long as you stay connected to them.

I say this from the perspective that another deal with a contractor like this could really hurt. You've already been burned, I would bite the bullet and make sure this next agreement sticks instead of risking a relationship type deal again. 

Good luck Itay! Sorry to hear that this worked out so poorly. 

In most scenarios I've seen on the open market you'll fall somewhere in between. Very few will take 100% of the financial risk and give you 50% of the profit straight up without some other kicker. And then allow you to be any part of the LLC would be a stretch. That's not to say it wouldn't happen, but that person has all the risk and is allowing you to partner for half the profit.

More likely is a split of the capital, and LLC agreement as the instrument, and then some split of the profit that is weighted by risk and responsibility.

If you throw in the financing variable, be prepared to put up some of the up front capital needed which may be a lot smaller but also comes with monthly payments. That has to be resolved as part of the deal and the hold time becomes more of an issue if it's a flip because of the effect those payments can have.

Good luck Parker!

@Matthew Sutton That's a tough question but I'll give you a different point of view. I buy from wholesalers all over the country. If a wholesaler doesn't live or work extensively in person to the market they are selling me I usually am extremely hesitant to work with them. As an out of town buyer, I need someone who knows the market and I rely on them for that exact information that a local should know. If you're going to try and wholesale away from your home I would suggest you learn that market like you've been there your entire life.

The variables on this are many. How it works with the floor plan, where you add and what you add, how the remodel looks with the rest of the house, it's all one big line of questions.

The short version is that in most of the country we can add square footage with plumbing and electrical for between $80-100 per foot. Then $20-40/ft for remodeling the rest of the home depending greatly on quality of the remodel (class of materials for some). 

With permits, landscaping, and some cushion that seems to put you up near a 100K remodel if you're going high end. That seems to leave room for a very healthy profit if the planning is done correctly.

Hope that helps!

@Rashad S. like 2008? No. There isn't nearly as much sub prime debt out there as there was in 2008.

Are we headed towards a bubble? I think so. I don't know the depth or breadth though. I'm guessing it looks more like a market correction and in some markets it may just end up as sustained stagnation in values. 

The rapid appreciation over the last few years is not going to continue so playing the game for appreciation is dangerous. But smart decisions and calculated investments should keep good investors in the money.

@Joshua Poitras I don't know that there's a really good one that exists. I know that we've run the gauntlet over the years, all the way up through enterprise style solutions and customized software packages. If you're scaling up, the basic software will still work. And you'll still have to jimmy rig it a little. Sometimes the basics are still the best.

@Michael M. Great points. Zillow is similar to your county assessor when it comes to valuing your home. Often they look at generic numbers for an area and then just put an algorithm on it to adjust for years at a time. I know my personal residence hasn't been evaluated by my county for at least 4 years and probably won't be for another couple. 

Where both systems fail is the "artistic" side of real estate. And that's fine, more people need to understand that though. To your point, they don't know if you've done the remodel work already compared to the zombie home that sold three doors down. The difference to a buyer could be 30-40% in some markets but the adjustments made by both sources, if any, would be minimal. 

And when 3D printed homes are available, zillow still won't be able to adjust appropriately for the topographical changes and your view will not be valued enough. I can't see them ever being right on, even if they get closer.

@Juan Vargas What kind of checklist are you looking for? Things you need to have in order to buy? Remodel items to figure out? I can think of a hundred things you need but I'm not sure what you're needing to start. You'll have to be a little more specific.