All Forum Posts by: James Masotti

Thanks @Michael S.!

Am I missing where the chat feature is, or has it gone away again?

@Timothy J. - Can you by chance post up the rest of the pics and details for this project? I would love to see how this wrapped up and pick your brain on some of what you learned.

Great post here! I'm submitting an offer today in South Jersey and ...my scope of work is a bit different than yours but I'm budgeting 50k for renovations. 

3 bed 1.5 bath rancher

New Roof

Full mold remediation in one bedroom

Full basement demo

Add 4th bedroom and full bath to basement

Finish rest of basement, including can lighting

Refinish hardwood floors on main level

New carpet in bedrooms.

New Kitchen

New Appliances

Full renovation of full bath 

Replace a few windows

Replace several interior doors

Clean pool 

Basic landscaping

Remove old shed and add a new one.

If I am able to go under contract I will need to bring contractors through the house to validate all of my pricing during my inspection period, but I built my cost models by reading J Scott's book and then spending a few hours at Lowe's and Home Depot researching material prices at the low, medium, and high end. 

I've bounced the numbers on this deal (as well as a few others I've looked at and done simulations on) by experienced investors and contractors and have said it feels like I'm in the right ballpark. I'm also building in a pretty decent time buffer and profit margin, so that i have some space in the event that my numbers end up being incorrect, I wont go completely broke on the deal. Hopefully this helps provide a bit another example.

 I would love feedback from others here on BP as well :)

@Jay Hinrichs - All very good points that I appreciate you brining up. What are your feelings on a lease option then? They often seem very similar to me with the difference being when title actually transfers (at least that's been my understanding). 

Thanks @Brian Gibbons! Great post! Just to make sure I'm understanding then...if you were to buy directly from them in a wholesale agreement you would be looking at 70% of ARV minus repair and acquisition costs, minus the remaining amount on the mortgage.

In your example that means you can pay the seller $70k for their house. 

In the JV scenario you would look at the ARV subtract out the repairs and the first mortgage as well as the cost to sell. I guess this is where I'm looking fro clarification...is your $15k JV fee included in the $20k cost to sell or is that an additional line item?

Meaning the seller gets $110k, because your $15k JV fee was included in the $20k cost to sell...or they are getting $95 after you take your $15k JV fee out of the $110k?

@Brad Pickett - How do you approach a seller about subject to? This is a strategy I would like to try for acquiring rentals and flips that only need light rehab. 

Appreciate your thoughts and any tips you can provide!

@Kyle Norris - Welcome to the forums! You will definitely learn a lot on here as there are a great number of investors all doing different things. The key is to not get shinny object syndrome and move away from what you've decided is your best strategy. 

Even though you've had good success so far and aren't really a Beginner, you may want to read the Ultimate Beginners Guide, so that you can get a feel for the different communities here on BP.

Best of luck and continued success!

@Scott Costello - Thanks for posting the update on your experience with IC. I had been seeing your name pop up on a number of threads that were a bit older and was curious to know how it's worked out for you in the long haul.

Is there anyone out there who has maybe had a similar experience they can share with LeadPropeller?

@Anthony Kasa - I encourage you to just soak in all things BiggerPockets. There are a ton of great resources from the BP Podcasts, the AskBP Podcasts, the books (I'm reading J Scott's The Book on Flipping Houses right now) and of course the forums. You'll learn so much in 6 months that you will completely forget what it was like not knowing anything. After that I'd just suggest you try to reach out to other local investors here on BP or at your local REIA. It's amazing the resources that are out there for the people willing to put in the effort for them. Definitely check out @Brandon Turner's Book on Investing with No and Low Money Down as well if you're interested in Lease Options. Some great info in there on all sorts of creative financing options.