All Forum Posts by: John Seitz
John Seitz has started 23 posts and replied 57 times.
Post: New member. Aspiring investor
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Welcome Bryan. I'm just on the other side of the river from you.
Post: Flipping using Hard Money calculations
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Quote from @Daniel Llauger:
@John Seitz Thanks for looking into this example, how is that ARV calculated?
That ARV x 75% calculation shown is what the Hard Money lender maximum amount they could lend based on the ARV I give them (max funded loan amount by LTV), so out of the $185,000 they can lend me up to $138,750 and the difference I need to pay it when closing. Perhaps I label it incorrectly?
Post: Flipping using Hard Money calculations
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
One thing I see is that your ARV calculation is off. The formula is (Purchase Price + Renovation Costs) / ARV Percentage. In your case, (118000 + 450000) / .75 = 217,333.
Post: Rehab cost estimation tools
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Hello, I've been practicing estimating rehab projects on my own - viewing properties, pricing out repairs and updates online, etc. I am a newbie (I have yet to purchase or flip a property) so I'm not terribly confident in my numbers yet. Are there any DIYers out there that could recommend an estimating tool? Are they all BS? I figured could do my own estimating along with an online tool just to compare and contrast. I don't think I would ever solely rely on a third-party tool. Thanks.
Post: How are people making money when using contractors?
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Hello, I am a newbie and a fix and flip virgin. I'm spending a lot of time learning how to analyze properties and finding that the current market offers some pretty slim margins for profit. I'm a DIYer so most of the work and savings will come from NOT using GCs. I'm curious how people are making a profit when using the more costly option of using a GC. Are you accepting smaller profits? Do you just have great relationships with your GC where they're willing to give up their profit margins for volume work? Am I figuring something wrong? Thanks.
Post: Is my hatred of W2W Carpeting sane?
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Quote from @Corby Goade:
Just popping in here to confirm that you are indeed insane.
I think everyone generally likes hardwood floors, except tenants. They hate them and will stop at nothing to destroy them.
I'll happily put carpet right over hardwoods on a rental, heck, it's like bulletproof protection for them. When I go to sell, sure, pull up the carpet and get that hardwood looking nice and fancy. Until then, I'll just replace the carpet every 7-8 years.
Excellent point. I should have specified this was for a flip, not rental. Thanks. Also, thank you for your honest evaluation of my sanity :)
Post: Is my hatred of W2W Carpeting sane?
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
I live in St. Louis, MO where we have many beautiful old well-built brick homes, many with (potentially) beautiful hardwood floors throughout. I love hardwood floors. I think carpeting is a crime against humanity. Even when I see a property with new carpeting in near-mint condition my first thought is to rip it out and polish up the hardwood underneath. Is this sane? Am I removing value when I remove perfectly good carpeting? Are there certain rooms (eg bedrooms) where carpeting is more acceptable?
Post: For DIYers: Recommendations on Paint Spray Guns
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
I've been doing my research, but there are so many options it's difficult to decide. I haven't seen a lot of posts about tools, but i thought I'd give it a shot. Does anyone have experience with different types: conventional air spray, compliant, HVLP, air assist, electrostatic or rotary atomizer? What about brands? Thanks.
Post: Ceiling Fans - Yea or Nay?
- Investor
- St. Louis, MO
- Posts 59
- Votes 30
Quote from @Ricardo R.:
@John Seitz if its a flip and there is AC either window or central then, I would likely just do recessed lighting, LED thins. Here's why... ceiling fans are one of those things that are only usually noticed when they are present; meaning if it's there people notice them, if not, then no one usually notices. Next, if you are trying to use a ceiling fan/light combo then people will take note of it but will also notice that it is the only source of light in the room. Recessed lights show cleaner and more updated in contrast. Lastly, it's usually a one-way street in 'perceived' and actual value... ceiling fans alone won't do anything at all to raise your value and don't raise the perceived value because while some will think it's practical others will think it's dated or cheap or not their style... whereas with recessed lighting it gives the perception that the space is updated immediately and higher end in comparison and allows you to piggyback on that perception into other aspects of the flip and market it as updated and clean also it is something that many more buyers love when compared to just a ceiling fan. Just my two cents, I hope this helps.
Ricardo,
These are some excellent points. I hadn't thought about it this way, but I agree with what you're saying. It makes a lot of sense. Gracias por la ayuda.
Post: Ceiling Fans - Yea or Nay?
- Investor
- St. Louis, MO
- Posts 59
- Votes 30