All Forum Posts by: Glenn Espinosa

Awesome numbers! Hope you get a buyer soon.

To be honest, at that price point, the house looks awesome! One comment - I really like what you did with the bathroom backsplash. I've been contemplating something similar with one of my current rehabs.

What comments have you been getting from potential buyers?

I'd wouldn't even recommend going full time until you've had a couple of flips under your belt. One or two successful flips doesn't guarantee future success.

Whenever I leave my day job I want to have no consumer debt and my personal mortgage covered for 6 months at least. That is on top of having a hefty amount of investment capital for flips.

Hi Sheree!

Welcome to the site. Glad to see you've chosen real estate. Stick around and read as much as you can. Use the search function for any key topics you're interested in.

I read your plan and it's doable. You have to work hard at it though!

Sorry, no tips about REI and raising children. Im sure others have some though.

Best,

Glenn

Thanks Pace! I figured a lot of new guys could benefit from a topic like this. Now we just need the veterans to start chiming in. Guess all of them are sleeping in this weekend!

One tip that I have: Make a connection first before you hand out your card to someone. Let them know what you have to offer them. You want that other person to be on the verge of begging for your card before you offer it. Otherwise it's going straight into the trash!

You wouldn't believe the amount of cards I get from people who literally haven't even told me what they do yet. REI clubs are infamous for that sort of thing and it's ineffective networking in my opinion..

Taylor Forconi It sounds like you have the right goals in mind! I especially like the fact that you're taking the time to get your financial situation straightened out - A lot of people forget that step and think they can jump straight into making 5 figure pay days with no money, no credit, no experience.

Read up, gain some knowledge, and network all while you build your investment capital in the background. Sounds like a killer plan. Put some numbers and a set timeline in their to add accountability and you'll really be set!

Also, reach out to a local mentor and run all their little errands for them. You'll get first hand experience on what it takes to flip a house and you might get the opportunity to partner with them in the future!

Let us know how we can help.

Best,

Glenn

Hi all. I'm working on a blog series to help the newbies and wanted to get some material from some of the experienced flippers out there. In one simple sentence, where did you get the money to fund your first flip? Eg. conventional loan, HML, savings, credit cards, family, friends, etc.

I'll start:

First flip was funded with 10% personal savings, 20% loans from friends, 30% credit cards, 40% construction loan from credit union.

Justin Atkinson If you are approaching a money lender - you have to have your ducks in a row beforehand.

Google up "investment proposal" or terms similar to that and look at examples. You'll want to put together a packet with your credentials and experience as well as the deal numbers. I'd leverage the experience you have working with you in-laws who do flips. You have been working/shadowing with them, right?

The deal numbers are whats really important, especially to hard money lenders. They want to know:

- The home's ARV as well as comps to support it. (Use homes sold within the past 6 months and within 1/2 mile, the more recent and the closer the better)

- How much you are purchasing for

- Your plans and costs for rehab. Itemized generalizations can work here but the more detailed the better. Include info from the contractors that you've spoken to already regarded project ballparks. Always budget for a contingency and include this with your numbers. If you try to "sweeten" the numbers a hard money lender can easily sniff that stuff out - they know their stuff and they know when you haven't budgeted enough.

- You quiet costs to include buying/selling costs, realtor fees, utilities, cost of money, etc.

- Lastly, figure out exactly how much a HML stands to make if they offered you so and so terms. Other than making sure you working a real deal, this is what they really want to know. Typically you are looking at 3-5% origination points and 12-15% simple interest.

Throw in a bunch of pictures and you will probably be better off than 75% of new investors applying for hard money. Also this does not have to be long. I put one together that was only 2 pages.

If you have a substantial amount in the bank then a statement will also help.

Hope this helps,

Glenn

How many sq ft? I don't know the condition of the comps you are talking about but that exterior (especially if you're doing the roof) will cost you $5k+ alone. All new plumbing = $3 - 6k+ alone. Freshing up the interior - $4k+.

And all those estimates are on the low end in my opinion. Double your rehab and you might be closer, but I'd venture to say still low.

How about HVAC, windows, flooring, electrical? Just to name a few.

Flipping and wholesaling are sustainable but J Scott and others already harped on the importance of adaptability and knowing your local market.

Effective flipping formulas will change as the market changes. Marketing effectiveness will also change. Key is adapting and being able to identify what works and what doesn't.