All Forum Posts by: Joseph Pytcher

I unfortunately made the mistake of investing with him a year ago and have yet to receive anything back. I am in contact with an attorney in RI and we are looking at possibly doing a joint filing against Teshaw. Because there are so many of us out there, I would appreciate if you could reach out to me if you sent any money to him. It appears he may be running a ponzi scheme. 

Thanks, Joseph 

It's extremely competitive here right now. Unless you're willing to do this full time or have someone that can find properties for you full time, you're going to have trouble finding any deals. 

@Kenneth McKeown Absolutely! I do build custom homes though which takes up the majority of my time. I have a good team that handles the flips which is almost automated at this point. Once non-QM loans open back up, I'll probably start loading up on more rentals. I've had to pause that due to all the covid stuff. 

@Kenneth McKeown

I have business level expenses of course but that $16-18k is net on a per home basis. I have about 8 rentals that I've kept, would like to get up to 50 within the next 5 years or so.

Don't get me wrong, when I first started, I lost money on my first two deals, but I just kept going and it's paid off. 

@Kenneth McKeown Totally get it, the key is to find a formula that works for you, apply that to every house you flip and run with it. Trying to design every house from scratch is going to cost you time and money. I take 1-2 templates, apply them to each house, and that's the finish out we do on every single one. I flip 35+ properties a year and I average about $16-18k on each one. Sometimes less, sometimes more, but on just about every house I use the same carpet, flooring, paint colors, exterior paint colors, cabinets, etc. The key is to figure out what works for you, from a design and cost perspective and of course, making sure it conforms to current market trends and just run with it, making changes periodically as markets change. 

I would avoid Mesquite. The city is getting extremely aggressive on flippers. If they see ANY construction going on they'll put a stop order on your door and make you pull a permit and their inspection process is terrible. You'll spend WAY more on construction than you think if you do a deal in Mesquite, and you will get caught, trust me lol  

Thanks Vernon, no I don't mentor but I've been doing this a long time. 

Joseph 

I think you're dreaming if you think you can do 70% or better in all honesty. Just want you to set the right expectations for you. 95% of the deals I get are at 80-82%. The name of the game in DFW is volume if you want to be successful. Holding out for 70% deals just isn't going to happen. 

I am flipping 3-5 properties a month in DFW. If you do the flip right, you'll do just fine. The market isn't slowing down. 

FYI, if you were raising money and you were charging a 1-2% management, I would not be working with you. Your income should derive from how you perform, not by managing people's money especially with only 1 property completed. Also, yes, set up an LLC. Do not buy properties in your personal name.

I mainly buy from wholesalers who I have had a long term relationship with. That's where I source most of my properties.

Also, tax purposes, if it's your main job then you'll be taxed ordinary income, no way around that. You can set up your LLC with an scorp and pay yourself a W2 and avoid a lot of the self employment tax though.