All Forum Posts by: Jordan Deeney

Hi @Annie Ramirez. Congrats on your first flip! My wife and I are fairly new ourselves. We are on our 4th and looking for our 5th. My method seems to be working somewhat. I reach out to investors, wholesalers, realtors, and work on direct to seller strategies every time I am looking for a deal. I am just starting to do that again right now actually, as I am looking for another house to buy. I analyze all the deals I have coming to me and try to turn over rocks I haven't turned yet. Attempting to increase my network each time around until I find something.

 If competition is a problem, just look in different areas or search in ways that are less competitive now (which is hard to find now days). 

My first deal took me 3 months to find and I got in on the MLS. My last two deals have been off market and I found the homes immediately. And my latest one came from my own direct to seller lead. Your network helps a lot.

I Hope this helps and good luck!

@Declan Schreiber. No, not at all. My intentions were to say make sure you are educated before you make decisions that can limit your options. When I made that decision I described, I wasn’t educated on assets/liabilities and what impact that new debt would have on me. My payment was $500 and I wasn’t making lots of money. And it took me a while to recover so I could invest. It was a huge impact on my debt to income.

Hi @George P George III. Sounds like a winner. Just get it listed as soon as you can.

Hi @Declan Schreiber. Save money. Money is 10x more powerful when you are 19. Save it up and put it to use acquiring assets and not liabilities. Always keep your options open, don't tie yourself down via any debts or bad credit scores. My life lesson: I got hooked on the idea of real estate investing shortly after buying a nice BMW for our family when I was 24. I discovered that I could not qualify for pretty much any home loan in our market carrying that BMW debt. We sold the car immediately and spent a year paying off the 10 grand of remaining debt from the car. It was a huge loss financially and it took a year to get on track. Don't limit your options :). Hope this helps!

Hi @Account Closed. I highly recommend getting some money saved up or finding a good partner you can trust. Typically, the worst thing that can happen on a flip is you run out of money. It would be hard to bounce back quick with that on your record. Flippers are very likely to be going over budget by quite a bit on their very first deal. I am sure their are lenders that do 100% if it is a screaming deal, but it is going to be hard to find a screaming deal when you are new. And I would be surprised if those lenders would lend 100% to someone with no experience. Plus, most all the HML's I know have tightened things up a bit due to coviid. You can do whatever you want, but I would think the wisest move would be to find a good solid money partner or just save up that dough. Start looking for access to lines of credit too so you have reserves to catch you if you fall on a flip.

Hope this helps!

Hi @Chrisna Ouk. If the deal is good for you, do whatever you can to help them with whatever situation they are in. There is always a solution. You can work it into the contract that they have X amount of days to move after closing. (Be careful with this right now with coviid going on. I have heard a lot of horror stories because you can't evict people from their homes right now, and the seller could be considered a tenant if you let them stay after closing) You can even go the extra mile and help arrange a moving company or help find them a place if that is another hurdle for them. Some people just aren't great at solving problems. 

Hope this helps!

Hi @Efrain Torrez. Ya, we really need to know what it is worth now vs the arv. The big question is what the return in equity is vs the money you spend on the rehab. And we need to know what your scope of work looks like. I am unclear if you're doing a full remodel or just trying to accomplish adding a bedroom. Like @Geoff K. said, it doesn't look like it makes that much since to spend that much just to add a bedroom. We just need more information to assess your situation. 

Hi @Daniel Del Vecchio. I was in your same spot about 20 months ago and I started flipping about 12 months ago. I would just devour everything you can on Biggerpockets. Read the forums and every book from the famous 4 that has anything to do with any step of the flipping process, personal development, and business. Then network with people from BP as well. 

Like @Evan Polaski said, make sure you have cash reserves. If you run out of cash on a project, you are done. You need to make sure you have options to pick up the pieces if your construction goes way over budget. The worst thing that can happen is that you can't finish the house. Make sure you have plenty of cash reserves and back up plans for that situation. 

Make sure you really know construction yourself, or have a good trusted contractor to check out a house you are wanting to buy. This was a mistake I made on my first one. I was feeling good on my first house, I had about 20 GC contacts. But when I called them to come take a look at a house I was buying, I only ended up being able to get 3 out there. Try the best you can to find "your" contractor that you like a lot before you are really looking at buying a house. 

I ended up playing GC on my first house and it was the best thing that could have happened to me. Having 0 construction experience, it was extremely hard, but the knowledge I gained was immense. 

Good luck and I hope this helps!

@Tanner Litchfield. I would....

1.Scour the MLS.

2.Reach out to every wholesaler you can find. Look for them on BP, We buy houses websites, Bandit signs, facebook, craigslist. (Just know how to analyze a deal. You will come across a lot of bad wholesalers with bad deals in your search)

3.Look for investor friendly realtors. BP is a good source. 

4. After doing these steps when I started out, I was analyzing the deals coming in and then experimenting with finding deals myself. 

I don't know your background, but be sure to know the construction side fairly well or bring a trusted contractor with you for wholesale stuff. Typically you have to act quick, without an inspection, and with a good chunk of non-refundable money down. 

I Hope this helps!

@Keith W.. This is going to be a very vague response. I heard David Green on a very recent podcast episode talking about this very issue of difficult comps. I am talking within the last 2-4 episodes I'd say. He seemed to be very on point. If you can't find comps, expand the search criteria a bit, and go back further in time. And he suggested looking to another area nearby that is very similar but might have more recent sales. The trick here being that you make sure it is a similar area, which I am sure is hard to do without an experiences agent. I recommend trying to find that tidbit in the podcast episode to get a more accurate representation of what he said than I said here. Hopefully this helps!