All Forum Posts by: Glenn Espinosa

I love hearing stories about young guys making BIG moves. Best of luck to you! Keep us updated.

Sometimes I wish I would have majored in Business/Real estate development.

Try Wix.com

That site was suggested by one of the members here in a blog post. I messed around in their page creator and it was very easy to use and has all the features you'll need for a simple listing page. For a little money you can even host your site and get a custom URL.

I've also used postlets.com in the past. Those things work wonders for craigslist ads.

Welcome! Glad to see other young investors out there. I jumped in at 22 and I still wish I would have started sooner.

Best of luck!

I've done full bath guts for $3k in my area. A double vanity will add about $600 installed. I like to take it up another level with my finishes so I will budget a little extra than most, especially for the master bathroom.

Bathrooms with windows will need more money especially if you have to replace the window.

Don't ever skimp on the master bath. Spend a little extra if there is room and really wow your buyers. It works for me and my area at least.

Depositing what was at that time the biggest check check of my life into my bank account. The check was for over $100k and it was written out to me. What a rush!

Of course I had to pay everything back that I owed on the flip, but the remaining amount was still a pretty nice sum. I reflected on how I came about earning that check and although it was some of the hardest and most stressful months of my life, I knew right there that I wanted to keep rehabbing homes and investing in real estate for a long long time.

Without Biggerpockets I would have never jumped off the fence and made my first real estate investment. So for me the most important thing Biggerpockets has done has been instilling the confidence within me to make my first move.

I was able to post information about my first deal, get valuable feedback that helped me avoid pitfalls and make my first deal profitable.

Nowadays I come back with the goal of helping other first time investors find the motivation to hop off the fence and pull the trigger.

Other than that it is true that I learn something new everyday from visiting Biggerpockets.

Even if you were to get $59/sqft on this house you're still only netting a $98k sale price. I don't think you or those current houses on the market will get $135k-$145k.

Unless you get the house for 50k like what Mike suggested, you don't have anywhere near what I'd call a deal.

Don't even think about offering more until you have a recent sale that suggests what you're trying to sell it for.

Losing $300 on that structural inspection is a lot less than what you would lose if you moved forward at 79k.

Dave,

I totally understand where you are coming from. The point Im trying to make is that if he is not willing to take the risks associated with real estate then he doesn't need to be in this business. The numbers he laid out to me (ASSUMING they are right) are, to me at least, all I would need to green light this deal. In my market that deal would be a home run. Im going to be conservative here:

235k ARV - 50k (20%+ quiet costs) - 60k rehab - 100k purchase = 25k profit potential

Also, I would beg to differ than it takes experience to be confident. Im sure many rehabbers have jumped into their first flip feeling confident without having ANY experience. As long as you are SURE your numbers are good and that you have done your due diligence, first timers can come into a deal with some sort of confidence.

I jumped into my first deal with only a month of studying and researching because I was 100% confident in the numbers I came up with. Did I make a lot of costly mistakes? SURE! But my numbers had enough room to allow for those mistakes and in the end I profited!

Simply put, if someone takes the time to do their due diligence on a deal and still does not take advantage of the opportunity that has fallen into their lap then they will never pull the trigger and forever be in the sidelines. Find something else, real estate is simply not for that person.

Wholesale it, do as Aaron suggested and find a partner, do something. Don't let this opportunity pass.

Those figures can be thrown out the window. You have to go by what has SOLD in the area and not what people think they can get for their house. What the seller wants and wht the buyer is willing to pay are two different things and guess which one matters in the end...

Use the most conservative numbers and trust your realtor when he says that 95k is the average. With a purchase price of 79k + 16k rehab you have 95k. That means in the best case scenario you will absolutely lose money on this deal!

Why in the world would you pass this up?! If his numbers are right then this will be a great opportunity to get in the game. If he passes this deal up then I don't know what kind of deal he'd need in order to jump in.

I say wholesale it to an investor and then offer to help said investor during the rehab process. That will help you two fold: 1) put more cash in your pocket and 2) give you a great opportunity to network and learn more about the actual rehab process.

If not then you can always look for a hardmoney lender. Be prepared to pay high fees but this will probably put the most cash in your pocket. You can't be greedy when you have zero track record and with almost the equivalent of no skin in the game.

Before you do all that, though... check and double check your numbers. Get a CMA from a realtor using recent sales and go ahead and get some contractors out there and pay them for their bids on the project. That info will go a long way when looking for an investor to wholesale to.