All Forum Posts by: Kuba F.

In Los Angeles I can't get anything done for less than $100/sqft unless I'm doing it myself, so that's where I start the back of napkin analysis.  Doing the work myself I've been able to squeeze out $20/sqft.   If all you're doing is paint and floors then you might be able to get away with $10/sqft but I haven't seen one of those deals in years.

If you're trying to wholesale deals and want a $/sqft number then the best source for that would be the people paying for it, not other wholesalers. Talk to active flippers in your neighborhood and ask them what they ended up paying for rehab on their last few deals.

This back of napkin stuff will still have huge margins of error though, so ultimately you will need to make the lowest offers you can negotiate and back those offers up with some sort of rationalization for them to ever be accepted.

Are you local to the property?

If you are you should already know what utilities you pay and who to call for that.  

If not there are generally 5 basic utilities, electric, gas, water, sewer, trash.  Sometimes they're combined into one utility company.

For taxes in Atlanta you can search for a property's previous tax bills here: https://www.fultoncountytaxes.org/property-taxes/search-for-tax-bill.aspx

Of course this is based on current assessment.  When you purchase it it will get reassessed and likely increase.

For insurance, I personally use NREIG but call around different companies that offer builder's risk.

I could be wrong, but the questions that you're asking worry me that you don't necessarily understand the scope of work involved, and therefore don't understand really how you're going to make money and what your risk is.

Starting from the top, assume that everything your wholesaler has told you is untrue until proven to be true.  This is not a dig at wholesalers, it's the nature of the relationship.  

First you need to find the after repair value of a property and the rehab cost estimates before you make an offer.

The after repair value is determined by looking at comps and looking at the level of finishes that those comps have.  This will help you determine what kind of rehab to perform and how much it will cost.

If you have made an offer already and are in the due diligence period, then I would be getting as many contractor estimates as you can within that limited time frame to see if the cost to repair the property is within acceptable margins.  

If not cancel the deal immediately before your contingency period expires.

Hi Everyone,

My name is Kuba and I'm the founder of REIkit.com online house flipping and wholesaling software based in Los Angeles.

I wanted to let the BiggerPockets community know about two tools that I built out that are free for anyone to use: the ARV Calculator and Comps Adjustment tool, that could save you thousands on your next investment.

If you've ever found yourself in a situation where you were looking for comps as part of your After Repair Value calculations, but everything that was coming back was just not the same as your subject property, you need this tool.

More bedrooms? Less Bathrooms? Pool? No pool? This all matters.

On my very first flip I did not account for the fact that all the comps had a garage, and my property did not.

That was an expensive mistake that shaved $15,000 off the profitability of my flip.

If I had just taken a few extra minutes to adjust the comps, I could have avoided it entirely, instead of finding out months later when it was time to sell.

It's exactly why I built out the free ARV Calculator and Comps Adjustment tool, so that others could avoid the same scenario.

Wouldn't you like to know if you're going to lose money, before you make the deal?

Click this link to analyze your property with the tool instantly:

https://tools.reikit.com/comps

Feel free to reach out to me here in the comments or on the site chat if you have any questions or suggestions.

Cheers!

Kuba

Hi BiggerPockets Community,

Kuba Fietkiewicz here, founder of REIkit.com online house flipping and wholesaling software. I've got a quick question for you today:

How much are you spending monthly on all of the subscriptions that you use to run your business? Does it look like this?

$39/mo - ARV and comps

$40/mo - Leads CRM

$30/mo - Rehab estimation tool

$40/mo - Lead capture website

$9/mo - Property reports for marketing to your lenders and cash buyers

Combined, these tools add up to almost $160 dollars a month, and that doesn't even include robust analysis of financials, nationwide premium property data, or nationwide rehab costs.

You get all of that, and more, with a subscription to REI/kit where you'll find 7 complete tools integrated into one dashboard.

Our affordable price point does not mean an inferior product -- many of our customers have been with us for years and have enjoyed access to some of the best technology that continually improves.

Plus, we work 24/7 for you to add more and more features, along with fantastic customer support and an always helpful approach to real estate investment issues.

To learn more about all seven tools, and to try out the software with a full-featured, risk-free trial, click here:

https://www.reikit.com

Cheers!

Kuba

Hi Everyone,

Kuba Fietkiewicz here, founder of REIkit.com online house flipping and wholesaling software, based out of Los Angeles.

Real estate investors today know that finding deals is not as easy as it was just a few years ago.

Properties on the MLS are going for tens and sometimes hundreds of thousands of dollars over asking.

This makes finding a deal on the MLS very difficult, although there are still deals to be had if you can find a property that is hugely undervalued.

The alternative to the MLS is to think outside of the box, and utilize every single method, strategy, and website that can possibly net a deal.

Such sources of deals can be as well-known as putting out 'We Buy Houses' signs on every street corner.

Not so obvious methods would be looking at property seized by the IRS or other government real property surplus sites.

That's just one example of how to find wholesale and off-market deals online.

I have compiled a list of 54 other methods, check it out at this link:

55 resources to find real estate deals online

Check out also the sister articles on the site:

27 ways to find real estate deals offline

and

35 ways to find deals by cultivating relationships

Let me know if I missed any techniques in the comments below...

Cheers!

Kuba

Hi Becky, 

Thanks for the feedback.

It works in Houston just as well as anywhere else as you're completely in control of the comps and adjustments.  

If you don't want to include comps from a different subdivision then you can remove them on the map.  If you would rather adjust for the values across subdivisions because you can't find any comps, you could do that as an adjustment.

This is no different from what an appraiser would do.

Cheers!

Kuba

Hi Everyone,

My name is Kuba Fietkiewicz and I run my online house flipping and wholesaling software company, REIkit.com, out of Los Angeles.

REIkit was born when I made some serious mistakes while flipping houses and wanted to find THE magic formula for how to make sure it didn't happen again.

Through building REIkit.com and doing more flips, I finally figured out that there is no magic formula to be found.

The only thing we can do is educate ourselves as much as possible and try to account for every single risk and cost we can think of before jumping into a new project.

That's what I had in mind when I build out all the tools on the site...

With each tool I build, I ask myself: "Does this tool help my customers prevent the mistakes I made back then? Does this tool help my customers succeed?"

The comps adjustment tool, which is part of the free ARV Calculator, is particularly close to my heart, because I lost over $15,000 on my first flip by not accounting for features and amenities of my comps (such as beds, baths, garages and pools) when I did my initial deal analysis.

These tools are free for everyone to use instantly and will improve your estimated After Repair Value in under an hour.

.

Is an hour of your time worth $15,000?

I'll leave you with the link to the ARV Calculator and Comps Adjustment tools:

https://tools.reikit.com/comps

Comment below or chat on the site if you have any questions or even to just let me know how it worked out for you.

Cheers!

Kuba

Hi BP Community,

Kuba Fietkiewicz here, founder of online house flipping and wholesaling software REIkit.com.

If you're a wholesaler, flipper, or buy and hold, you need to use every tactic and technique available to keep your deal pipeline flowing. Finding distressed properties with motivated sellers takes perseverance, but you can cut down on the learning curve with this post.

I focus on 27 ways to find real estate deals that don't require the internet -- anyone can use these methods, and many are low-cost:

https://www.reikit.com/house-flipping-guide/27-ways-find-off-market-wholesale-real-estate-deals-offline

Also check out the sister articles on the site:

55 Ways to Find Incredible Deals Online

and

35 Ways to Find Properties by Creating Relationships

Let me know if I missed any in the comments below!

To your success!

Kuba

Hey BiggerPockets Community,

Kuba Fietkiewicz here, founder of REIkit online house flipping and wholesaling software.

Today I'll talk a little bit about two free tools that will make you look like a rock star to your cash buyers. The first is the After Repair Value Calculator, and the second is the Comps Adjustment tool.

Putting yourself in your buyer's shoes, there are two questions you have to ask yourself when analyzing a potential property to put under contract.

Can the buyer profit?

First, you need to know if your cash buyers will even consider the deal you're looking at. Does it have enough spread to fit both your AND their profit? Getting an accurate After Repair Value can be accomplished with this free tool that imports comps for your property.

How do we get to Win-Win

Seasoned cash buyers can smell a bad deal from a mile away, but as you bring your buyers win-win deals, they will keep coming back for more.

How do you get to win-win stage? It's easy, take the time to do the research on a property you're putting under contract by performing a comps adjustment on it.

99% of wholesalers will not take this extra step; but I guarantee you, when you do the legwork, and get to the same result as the cash buyer, THAT is a deal worth working.

Run an analysis on a potential property you're interested in getting under contract instantly with the free ARV Calculator and comps adjustment tool by clicking on this link today:

https://tools.reikit.com/comps

Let me know how it works for you in the comments below or on chat at the site.

Cheers!

Kuba