All Forum Posts by: Matt Stewart

@Brad Clarizio

For me it comes down to two simple things when considering a partnership, time vs money.  I'm in the fortunate position to have more of both than many, but I'm not willing overindulge in either.  And they both tend to fluctuate depending on what I have going on.  In the times when I'm heavily invested I'll consider a money partner with the understanding that I will be the one investing the majority of time and effort in the project.  Profits will be shared, but the ball keeps rolling.  Other times I'm in more cash and I prefer to be on the other side where I can find a partnership that saves me time and frees me up to pursue other sources of income, partnerships, and explore new possibilities.  

There's a lot variables to consider when taking on a partner.  Clear communication about goals and expectations is vital.  And of course written documentation is also a good idea, especially when dealing with a new partnership.  It sounds like you've got a fair amount of experience and you've got the finances, so the question would be, what does a viable partner for you bring to the table?  It has to be something that's worth half of your profits.  Otherwise, why bother.

It's interesting to see how different parts of the country appreciate smooth walls/ceilings and others want/expect to see a texture.  It's unusual in Ohio to see a ceiling smooth.  I pay a guy good money to stamp a texture into the ceilings, and then at the same time I pay him to make the walls as smooth as a baby's ***.  

Keep in mind it's relatively easy/cheap to texture a smooth surface, but not the other way around.

I also use a builder's risk policy.  The cost of the acquisition plus the budgeted rehab costs are used to determine the premium.  It's important if the property is vacant that your insurance company understands that, otherwise you'll end up paying for nothing because they will not allow your claim if something bad happens.

@Jeffery Waicak

Is this for a rental or a flip? Either way, $110k ARV granite? No.

At 110k I'd go with a laminate floor, unless you've got a nice easy lay space for sheet vinyl.  I would not go tile for a $110k flip.  

@Karla Talancon

I just completed (or nearly completed, closing next Tue) a flip where the buyer is located on the west coast.  The agent was able to view the property and share with the buyer through facetime.  As I understand it the agent also handles property management.  I was impressed with her at least from my perspective as the seller.  I'll send you a private message with her info in case you want to contact her.

@James Mason

I'm also in Pickerington.  You're not the Jimmy Mason I know are you?

@Ronda R. No, there are flat fee listing services that will get you on the MLS just like any agent would list your property. The buyer's agents call you for showing and you negotiate the deal and handle all the paperwork that a Realtor would otherwise do. You still end up paying the 3% to the buyer's agent, but you save the 3% on your side. I use ohiobrokerdirect.com and have been for several years.

The margins on Ohio for flips are tight, so in order to be profitable you need to save money wherever you can.

 I agree with Mohammad.  It sounds like a great deal for her.  You're taking on all the risk, investing in the property and the rehab costs while she's getting paid twice, once as a partner and once as a Realtor.  I'd have no problem with the 50/50 split, but I'd want to back out her commission on the selling side.  Otherwise just do a flat fee listing and save half the commission.  I've been selling my flips that way for years.

@Jessica Hood, yes I've been in Pickerington for about 20 years and flipping for the past 8 years.  I do remember the house because you don't see houses in Pickerington at the price point very often.  I didn't go see it because I was fully invested at the time and I knew it'd get a lot of attention.  Had I had the cash on hand I definitely would have been bidding against you.  

Interesting reading about the issues you had with the appraiser, although I'm not surprised.  Appraisers hold a lot of power in a real estate transaction and some of them have let that go to their head.  As a seller there are a few appraisers that I will absolutely not allow to appraise my property.  Of course as a buyer it seems the rules are a bit different.