All Forum Posts by: Kyle B.

Thanks, I will give them a call when I have a new project lined up.

@Adrien C., who did you have in mind? I'm mainly looking in Munster, Highland, Griffith, Schererville, Dyer, Crown Point and Saint John. Thanks!

Definitely probates, no bureaucracy of a big bank... close in 10 days. 

@Account Closed, I don't have a specific house in mind. I'm just planning ahead for my next potential project. Typically though total kitchen and bath remodel, all new flooring, paint, drywall basement, plus electrical and plumbing all up to code. Exterior work to if necessary.

Hey all, I wanted to see if anyone from the northwest Indiana area can recommend general contractors they have successfully used for a home flip in the area. I'm looking for someone who is licensed and bonded... doesn't necessarily have to be the cheapest. 

Thanks!

Kyle

@Andre Key what do you mean by "right walls"? Are you referring to which ones are load and non-load bearing? Any licensed structural carpenter will be able to help you out with that as well as the issue with the cabinets. Or are you referring to what will make the layout and finishes look the best? If it's the latter, an architect and/or designer can help you out with that, but you have to keep your budget in mind. If you are rehabbing a high end property, then they could very well likely be worth the expense, but for lower end homes, I'm not sure an architect can add much value to the resale price of a home. 

Can you expand on your question some more? What types of homes are you looking at (price range, size, cost of rehab, etc.)?

@Sam White I "own" a house flipping business. Although I'm hesitant to call it a business at this point because it really has no tangible value other than the labor I put into it. With that being said, I have found that I differentiate through my marketing activities. I have essentially given up on purchasing through the foreclosure market due to competition driving up prices. Now I market almost entirely through probate and estates. With these leads I've found almost no competition from other investors. It takes a lot of work to gather these leads but so far it has proved a great resource (as echoed by a lot of others on this site). I'm just hoping the other investors in my area continue to stay away from these leads so I can stay in business!

@Manolo D. talk to real estate agents in the area you want to flip and get their opinions. If you are going to list the property with them, then they of course will offer up all the knowledge they have of the market. If you find a good one, then they will know if there is any stigma from purchasing a previously foreclosed house or one that needed foundation repairs. In my area, I haven't really noticed any type of stigma about this. Of course it could be different in your market, so verify that with a realtor. My guess is that as long as you make all the correct repairs and pull the proper permits, it won't be an issue. However, since you're not an expert in selling, hire an expert for this area (aka real estate agent)!

@Shawn Roberson, this sounds like a high risk loan to me. This investors doesn't have $1,000 in liquidity to put down as EMD? What if the financing they are waiting on doesn't come through. Then there is a really good chance you lose your $1,000 EMD and then this investor has no way of paying your $1,000 back.

If it were me, I'd charge a very high interest rate, at least 50%. Is it a deal you'd be interested in investing in? I'd also write in a contract that if the investor can't deliver on the funds, you are able to take over the contract. Since you have the PoF, it sounds like you have the capital for it. Again, that depends on if it's a deal you're interested in yourself.

Emphasis you're making a cash offer with no financing contingencies, can purchase the property in as-is condition, and can close in a short time frame. Those are all advantages you bring to the table that traditional buyers can't. However, if the seller is set on a price well above what you're willing to pay, then there really isn't anything you can do. Real estate investors need to purchase properties below market value, so if a seller is in a position to wait for a higher offer, then they have every right to do that and you should move on to looking for new leads instead of trying to figure out how to make your offer more "appealing". 

I would follow up with the seller a couple months down the road. It is possible that their circumstances have changed and they now need to sell the property in a quick time frame.