All Forum Posts by: Account Closed

Good morning! 

Im a flipper in JC but I also have my real estate license. I don't really work as an agent, but the brokerage I work with specializes in Commercial real estate and Multifamily. I know one agent in particular who has a good hold on what is on the market and he is an investor himself. 

If you're interested, I can pass along your info to him.

Hello! I'm from JC as well and started flipping houses with an 80k heloc a year ago. Flipping with 48k is possible, but you will need to do the work yourself to save money and it will be difficult to find a deal that returns more than 5-10k. My first flip was probably my best deal to date in terms of roi; the entire project cost around 40k and I made 28k, so it is possible. Total turn around was 5 months but it was my only job... I know another couple who started a flip around the same time, also doing the work themselves, and they are still working on it. Granted their house will be a lot nicer than mine was when finished.

The three basic investment options that come to mind are:

1- flip- this will be difficult with you working a full-time job and only having 48 to invest.

2- brrrr - this is very possible. It is a strategy I would have employed myself before now if I had a W-2 job.

3- invest in someone else's project- I would be a little cautious of this one because you are using a HELOC that is tied to your primary residence (I assume). You could partially financed the deal with the first position lien to protect your interests. For example, I sold a house last month that I put a total of 35ish in, and a private money investor put in an additional 23. The private investor got a first position lien on a 100k house. Very secure. Worst case scenario she could have foreclosed on me and more than tripped her money.

There is a REI group that meets at the downtown Kingsport Association building every third Monday at 7. You can find other people doing business there if you want to scope out potential deals to invest in.

Feel free to reach out if you need any help!

Honestly I don't know how to work the site very well either:-) As far are other people to follow on BP, I'm not too sure who is active. I'm not on BP too often. I do think that several of the people who come to our investment group meetings are active though. I would suggest coming to a meeting and within an hour you'll probably have 5-7 new contacts in the area. 

It is really informal and we mostly just chat, though we try to have speakers lined up. 

You should come to our REI meetings; they're a great place to meet people and share ideas. We meet every third Monday at the Downtown Kingsport Association building. Our September meeting will be moved to ETSU for a speaker, but other than that we are in Kingsport every month. You can find more information on meetup.com.

This helps a lot! It gives me several things to think about...

Derek, in your partnerships do the passive partner investors provide all of the money to purchase the deal or do they provide the down payment needed for bank or seller financing?

How would you alter their percentages in each scenario?

I would be careful with self-leveler because of its weight. I generally only use it if I'm installing tile on top and steer clear completely if weight is a concern. 

Every house I have ever flipped as had uneven floors. Most are so slight, as in your case, that they can be shimmed up with cardboard or scrap paneling if you are going to use a floating floor like laminate. Once you install a thick floating floor (not the thin stuff) you shouldn't be able to tell. 

DO NOT use peel and stick vinyl flooring, no matter what the Lowes associates tell you. It can easily handle uneven floors and is groutable (but I would never grout the stuff..in my experience it would definitely crack), but I recently installed some in a flip but literally every piece bent and buckled within three weeks. It looked horrible.

I don't have anyone in mind yet. The way I have approached investing in the past is to have a solid idea of what I'm looking for so I can be specific when I talk with potential partners. I'm starting to see the limits of this tactic though. Maybe I should start by finding someone who is interested in multifamily investing and build the partnership from scratch...

Thanks for the podcast suggestion! I've been listening to them in reverse and just got to episode 100 so it would have taken me a while to find #17.

I'm stuck and need help finding the next piece of the puzzle! 

I would like to structure a partnership to purchase a 15-30 lot mobile home park in the NE Tennessee area. How would you structure the partnership given: 

1) The purchase price will be around 450k 

2) I may qualify for a commercial bank loan with 115k down (a loan officer said I would qualify, but I don't want to count on it too soon). 

3) I can find owner financing deals with around 100k down

What I have to offer:

1) 50k

2) I am able to do almost any type of renovation work (I'm a full-time flipper)

3) Flexibility of time/extra time

How would you structure a partnership in this scenario ?

Can/should I just use a 65k private money loan instead and how would I structure and secure that loan? 

Thank you all very much for your help, it makes life so much easier!

Thanks for all of the help! I finally found a local bank that is going to do it. Oddly enough, the first time I asked they said it wasn't possible, but then when I asked specifically why they couldn't do it they decided that they can.

Thank you both for your input! I'm going to specifically mention your points to lenders over the next week and see what they say.

I really appreciate your help.