All Forum Posts by: Whitney Hutten

@John Smithe I would invest in the types of homes and areas much like @Ryan Mullin mentioned and be sure you have multiple exits (rent, refi,   However!!!  I wouldn't buy retail.  I would buy low, rehab, rent, refi, repeat.  This makes your capital go further and protects you in a market decline or the need to flip a property.  
OR buy a MF unit (second option), partner up with others for a larger deal (third option).

@Daniel Martinez There are special lenders out there that specifically lend on homes that need to be rehabbed.  So the condition shouldn't matter as long as the numbers work to complete the project.  This could keep your capital freed up for future projects.  Feel free to PM me and I can share a few of my lenders I've used.  

I echo, Steve's advice AND 50/50 is not a horrible split either. I'm currently partnered on a flip where one party is doing the "legwork" and I'm bringing capital and personally guaranteeing the loan. We've split all out of pocket costs 50/50 so we are both aligned to A get it done and B get it sold. As you negotiate the split, also talk about who is bringing any construction overages, timelines, and contingency plans should the property not sell as expected (ie. how / when will you exit). AND get a good JV document in place. Can't stress that enough ;)

I like hiring out a crew (option #3).  Keep all of the auditing issue on someone else and keep overhead low.  I'm sure there is a breakpoint on costs.    Do you have enough deal flow all year around to keep personal crews busy?  I hear that being one of the biggest objections to hiring your own crew.

@Tanner Gish   I agree!  But I'd add 1 more step.  1. Get a locksmith over there NOW and change the lock.  Lockout that contractor ASAP.  2. Hire WeGoLook (like $40) or someone local to get on site and give an assessment ASAP.  That way if there is an issue you can start wrapping your head around that.  3.  Get on a plane ASAP and get eyes on what is going on.  You are losing money every second this property is not listed, and you have no idea what is truly going on.  

Lastly, once you have all of that under control, call and file a grievance against the contractor's license (if he even has one) and get legal support.  I hope I'm wrong, but this could be a true mess...

Thank you for clarifying @Bruno Nunes .  I'm not sure I would stick it out for a deal that I "might" break even on especially given we are close or at the top of the market.  There are so many other deals out there where you can make money now!  

Super helpful info.  People want to move into a "done" home.  You will have an advantage with a fence in place AND less likely impact of the neighbors spoiling the view.  If you can afford to do it, I'd build it.  

@Leland James Guess what!  You just networked ;)  Have you thought about becoming a Pro member and working the Deal Finder on BP?  You could post your deals.  Or working with out of state investors (hint... hint...)?  

40% under ARV.... wow! With a crew in place! You just need to find 2-4 BRRRR investors who fit your model and you will crush it! Happy to talk more as I've worked this model in two other markets :)

@Bruno Nunes So you would be all in for $330K for purchase and rehab if I understand this.  How are you planning on financing it?  Can you get all of your money out or are you planning on leaving money in the deal?  

Also, if your timeline is 4 months for rehab you are in August now if everything goes well.  Can you get strong rents at that time of year?  What about sales?

And since this would be more of an investor deal, you may need to consider where rates will be at that time (which we don't know if they are going up or down). Just factor that into the model. It looks like rents would put you at $3600 which on a $340K ARV is over 1% so that is good.

I had a deal similar to this and just couldn't stomach the timeline, the unknowns, and the need to be liquid for upcoming deals.  While this could work... I personally would pass for more of a slam dunk deal.  

Happy to help you pick through more numbers!

@Johann Harshman   Great question!  I feel having a privacy fence attracts a higher end tenant and keeps the neighbors for being such a huge impact on your rents.  The tenant can have their pets and kids in the yard and not be concerned about peering neighbors or anything unsightly (we did just that on our personal property and I feel like I have a private oasis).  

That said, I don't have fences at all of my properties for the very reason of pricing.  However, my B+ properties all have privacy fences...