All Forum Posts by: Matt Stewart

@Account Closed  You're going to find that most experienced flippers aren't too interested in sharing the profit with a partner right now.  There's just not enough deals.  The more value you can bring to a partnership the better.  Obviously there is value in your design work.  And from looking at the photos you do amazing work.  But really it's going to come down to how much capital you can bring to the table.  

I've worked with partners in the past that brought 100% of the funds needed for the entire project, and then we split the profits.  It sounds like you can't do that on the west coast, but in the Midwest that might be a workable option.  Even then you're going to have to bring your design skills to the table to add additional value. Prepare to negotiate on the split.  You may not get 50/50, especially initially.

Find ways to promote yourself and your design work.  Local agents are probably a good place to start.  Select a couple markets that you're interested in and make another post.  Start taking this conversation local and you may find what you're looking for.  Good luck!

You need a probate attorney.

Move on with another contractor immediately.  You have to get the project finished.  Don't let a sense of loyalty cost you more money. 

If or when he shows back up, you have a brand new conversation with him.  Starting with the $5k he owes you for work not completed.  Keep the generator and any other tools he has left behind as collateral until you've settled up, one way or another.  

Best of luck.  I hope it works out!

I don't know how to answer your questions because I've never known anyone to do it.  At least in my market.  Why would you do this?  Are you planning to finish the basement?

The basements in older homes are notoriously damp, so if you decide to finish it to add living square footage you'd have to look at waterproofing as well.  Not to mention if you dig up the floor to add depth, you're going to have foundation issues.  

I'm genuinely interested if this is happening in some markets.  But it seems unfeasible, and a horrible waste of money.

@Kevin G.  No way do you "need" a GC for the work you are describing.  But you do need qualified subcontractors that are capable and skilled at their particular trade.  Sounds like you have that.  The bigger issue is you need the ability to manage the entire process.  That means scheduling the work in the right order, making sure materials are on site for the subs when they need it, and being available on site to make sure the work is done to your standard, and to resolve any problems that will definitely come up.

I'd definitely find out what permits are required.  Drywall, and electrical work will probably require a permit.  It's always a good idea to hire a licensed electrician for any electrical work.

This all comes down to how much you or your partner is available to manage the project.  If you've got the time and ability, then skip the GC.  Be up front with your lenders about your scope of work and who you intend to hire to get it done.  If they have a problem with it, then find another lender who will work with you.

 I don't rate an area solely by the quality of the tenants that live in it.  I also don't rate an area by the return you make on a deal.  In my opinion, a general area should be rated by factors such as price/affordability, the quality of the properties in that area, the amenities available (schools, parks, retail, infrastructure), and livability (crime and safety).  I also take into account the ratio of rentals to owner occupied.  

Obviously everyone rates area their own way..., or not at all.  In a small town there may not be enough area for rating differently at all.  But for the purposes of trying to answer the original question asked here, we should keep in mind this is how most investors rate an area in a large or medium market.  

Clearly you don't, but most investors do. A property with an ARV in the low $100k's is not an A/B area. You can't polish a turd and call it a diamond. Even if it gives you a decent return percentage wise.

 Those aren't B neighborhood deals though. 

I don't think those exist anymore.  I can only speak to my market, but a distressed property in a B area is $180k+ around here.  And those aren't cosmetic rehabs.  

Maybe in a smaller market you might have some luck.

I'm buying flips in Lancaster.  I've done a few down there.  West and south side of town are more buy and hold areas.  My flips have all come north and east of the center of town.