All Forum Posts by: John Seitz

I'm looking for recommendations on brands of cabinetry that are decent quality but won't break the bank. What have you guys had good luck with? They could be RTA, Custom, Ready-to-install, or semi-custom. I'm looking for cabinets that are reasonably priced but that I can feel good about installing in someone's future home. Thanks.

Correct.

Tony, welcome aboard. This is a great place to be. I am also just getting started in the STL region. I look forward to following your journey. Let me know if I can be of any assistance.

Hi Justin,

I am just starting out in the STL area. I'm looking to get a few fix and flips under my belt to build capital then transition to the BRRRR method. I'm having a tough time finding the deal, but I've only been at it for about a month. I am learning a ton though - through experience and through BP. Good luck. I look forward to reading more of your posts.

Don't forget to factor in your purchasing costs, holding costs, and sales costs. You have a $50K profit based on those numbers, but all those costs can be 40K+ if you allow for a 6-month key-to-key turnaround.

Nicolas, I had something similar happen to an up/down duplex I used to own in the Holly Hills area. Turns out one of the downspouts was leaking water onto the outside of the downstairs unit. It was eating away at the mortar and getting to the interior walls. So checking the tuckpointing is a good start, but look at your gutters, downspouts, and roof flashing as well.

Samantha, I am also in STL using a HML. I have yet to get my first fix and flip under my belt so take what I say with a grain of salt. What I'm finding is that there are good deals, but there is also a lot of competition - it's hard to beat an investor who can do a cash deal, and there are a lot out there. Most of the houses I am looking at (150 - 180K) are selling for 15-18% over listing, with 10+ offers. So they look like deals initially, but wind up blowing up my numbers. I have a calculator that I've built myself using the BP and many other calculators as reference. I've line-item'd out every closing cost, HML fee, etc. I can think of. I think it's pretty good, but again I'm a newbie. Message me if you'd like me to share it.

Quote from @Account Closed:

Quote from @John Seitz:

Quote from @Jaron Walling:

I agree with @Joe Villeneuve. 

In the book the Psychology of Money they define the cost of success. "Nothing worthwhile is free. Most financial costs don't have visible price tags. Uncertainty, doubt, and regret are common costs in the financial world. They're often worth paying. You have to view them as fees (a price worth paying to get something nice in exchange, rather than fines (a penalty you should avoid)." I think that quote relates to REI. You need to know the costs before you buy, flip, or manage rental properties.

 Man, did I need to hear this today - Uncertainty, doubt, and regret are fees, not fines. I have yet to make my first transaction and I am finding it difficult to find the deal. I feel like everyone else knows the secret and I'm on the outside looking in. 

It's like riding a bike. When you first try to learn, you run into a telephone pole. That hurt, but you get up and now you head the other direction. It's especially easy if someone is holding the bike for you until you learn how to balance and brake. You don't/shouldn't start out on your own, that's crazy talk. You should either get some training or team up with someone who knows what they are doing.

I am considering the latter. I just need to spend some time figuring out how to find that person. I have signed up for a couple of mastermind meetups in my area. Hopefully, through networking I can find a mentor.

I think we're saying the same thing with a different approach. There is a calculation you can use to get what your ARV should be. Once you have that number compare it to 3 or more comps. If the comps aren't matching your projected ARV then it's likely not a good deal.That 185K you have is probably about 17.59% short of my calculated ARV.

Quote from @Jaron Walling:

I agree with @Joe Villeneuve. 

In the book the Psychology of Money they define the cost of success. "Nothing worthwhile is free. Most financial costs don't have visible price tags. Uncertainty, doubt, and regret are common costs in the financial world. They're often worth paying. You have to view them as fees (a price worth paying to get something nice in exchange, rather than fines (a penalty you should avoid)." I think that quote relates to REI. You need to know the costs before you buy, flip, or manage rental properties.

 Man, did I need to hear this today - Uncertainty, doubt, and regret are fees, not fines. I have yet to make my first transaction and I am finding it difficult to find the deal. I feel like everyone else knows the secret and I'm on the outside looking in.