All Forum Posts by: Jason McDougall

This craftsman style house has a lot of potential to be a great rental or fix-and-flip project. Although it is listed as a 3/2 with TAD, it's actually a 2/1 with a room added to the back of the house. It's a room, but not a bedroom. ARV of $100k, rehab estimate of $40k. Repairs include general rehab/cosmetic, roof replacement, exterior brick repair, electrical, HVAC. Contact me if you'd like to view the property.

Hey @Doug Simpson

If the numbers all work, then my only concern would be the fact that you mentioned that you're in a slower market. When your realtor pulls comps, have them find out the average DOM (days on market). If houses sit for a while, you might also be sitting on yours for a while, with what sounds like quite a bit of money tied up in it. 

You mentioned that you're going to do all of the work yourself, and you also work a 60 hour/week job. Do you know how long this project will take you, and have you calculated your holding costs during this time? If it's your cash, your holding costs will be a lot less, but I personally want to be in and out as quick as possible to keep my money making money. This might mean subbing out a few jobs in the house to a handyman to help you keep things progressing as you're at work during the day.

Just a few of my thoughts, but overall congrats on taking the leap!

@Kyle Critchnau

I think you'd be smart to add a contingency for clear title, but I haven't done that in the past. Since I've given the money to the seller as an option fee, I'd be out the money if the deal fell through. Thankfully, that hasn't happened yet. Let me know how everything goes.

@Kyle Critchnau

I've done this several times, but the key is making sure that this really is a deal and that you're confident that you can sell it at the contracted price. I've given sellers money in the form of an option fee, and noted in the contract that it will be credited towards the purchase price at closing. Sometimes when we're helping sellers out of a bad situation, they don't have any money to move out of the property, and this is the only option to complete the sale. 

Good luck!

@Justin Fussell

With an ARV of $100k, getting this house at $72k doesn't sound like a deal, unless it needs zero repairs to be rent ready. If he's willing to owner finance the house at $72k, you'll likely find an investor that would take this property as a rental, assuming the rent minus payment would cashflow a decent amount. Give me a call with more details, and I'll run the comps on it and give you a better idea of how you could make some money on this deal.

@Lian Shi

I recently got a quote from NREI (www.nreinsurance.com) as well as a quote from my local Farmer's agent. The prices were very comparable, but I ended up going with Farmer's because of convenience, and there were a few things that I liked better about their products (I got a $1mil liability umbrella policy from them as well). If you decide to contact a Farmer's agent, let them know that you'd like a quote on a rehab policy from Foremost Insurance. From what I can tell, Foremost won't quote to you directly, they work through Farmer's agents.

Good luck, and happy house flipping!

@Tyler Morland

You've got the right idea, congrats for taking action. Remember that it may take 7 - 10 "touches" before you get a response from some of those leads. Keep mailing or calling them until they tell you to stop contacting them, or that their house will not be for sale.

On to your question, I use www.spokeo.com for reverse lookups. The annual membership is inexpensive, and it will come in handy. If you can't get in touch with the homeowner, sometimes contacting one of the relatives that Spokeo lists can be beneficial.

Good luck, and let me know if I can help you with anything else.

@Don Harris

Great, thanks for the advice!

Hello BP!

I have a family friend that is loaning me some money to do a flip, but I don't know how to structure the paperwork for the loan. Can somebody point me in the right direction of where I might find some sample documents to use for this?

Thanks!

Hello BP!

I have a family friend that is loaning me some money to do a flip, but I don't know how to structure the paperwork for the loan. Can somebody point me in the right direction of where I might find some sample documents to use for this?

Thanks!