All Forum Posts by: Kyle Gardner

Yeah pretty common with the spds. I've been a part of about 5 where we had proof that they knew something and lied about it. Showed them the proof of them lying and they either called and begged us not to report them or denied it and quit answering our calls. It's a lot easier to hold the seller responsible if they're also a realtor. 

But, I doubt these specific guys got an inspection. It's a numbers game for them. Buy low enough and they'll never lose. I agree with the other comment though. You need to get them to drop price during your due diligence. List items that are non negotiable, ask for 30k that you didn't plan for.... Decide what's right for you

Cool cool, Casa Grande makes sense. Wish you the best of luck. That makes sense to learn on the job. You don't always make as much money but learning on the job is valuable. 

I think I found the house, I won't list it in case you want to keep it private. Disregard all of this if I maybe have the wrong house but it matches what you said. Comps are all over the place, active 210 to your east that isn't a bad house, much newer house cancelled at 270k to the west. 240k sold to the south but it's on a massive lot. 

Also, the sellers on this house are wholesalers. They move quite a lot of houses. Don't buy what they are saying about not wanting to flip it cuz they're too busy or it doesn't make enough money. Or that they didn't buy it for 60k. They use realtors to sell their properties so that they're less likely to get in trouble for violating the code of ethics. Their realtor is telling you what she believes to be the truth. 40 days on market matches the week that they bought it. Not to say it's a bad flip but I'd bet money they got it for 60k. There's no intermediary party on the sale records. 

Anyways, you'll probably be ok on this house. A lot of my subcontractors try and do flips on the side and get burned by wholesalers. So forgive my skepticism. We've flipped about 80 houses and wholesalers lie like it's going out of style. Doesn't mean that you can't make money on it, but don't trust anything that they say. Make sure to check everything multiple times. 60k seems about right for this remodel too. Did you get a sewer scope? Check the Roof? AC unit? 

Also.... Assuming you're getting this in the PHX metro and arv around 240k... Sounds like you're getting a manufactured home or a condo. If that's the case, you need to look into whether this home can be financed after repairs. 

A comp isn't a comp if one can be financed and the other cannot. 

Yeah if the numbers seem ok then it could be worth it. Just make sure you're being conservative with the ARV. Now that you're under contract, it's probably worth getting a couple of second opinions on the value.

People that are capable of flipping don't leave money on the table though. It sounds like you're dealing with your average wholesaler. They'll say anything to get you to buy from them.

Anyways, wish you the best of luck. Get some second opinions on ARV from people who aren't financially vested in this deal. The rest is just math which you seem to have down.

Nobody passes on a good flip that they already own. That's like mining gold in Alaska, bringing it to San Francisco and saying, "I can't do the rest, take it off my hands at a discount." All the hard work is already done. 

They either know something that you don't or you know something that they don't(the only correct answer is if you know it's worth more than they think it is) 

Otherwise you're likely buying fools gold. Given that I hear this story once per week with people doing their first flip... I'd steer clear

Sorry to hear that Alex. I'm building quite a few duplexes near downtown Phoenix and we've bought and scraped houses and done minor land divisions in the area. Send me the details on your lot and I'll give my 2 cents. 

If the property isn't in terrible condition, you can usually find a flipper that'll pay you more than they should. If it's too trashed, then may be worth selling just the land.

Not meant to critique but we flip and sell a lot and here are some things that would probably help:

1. The listing has 9 pictures. You need a lot more pictures that showcase the great things about your house. No magic number but a minimum of 20 that showcase that great room, nice kitchen and yard.

2. The curb appeal. The first pic clearly shows weeds at the sidewalk. And the grey exterior doesn't pop. Grey and white is out, or should be used sparingly. 

3. The interior is also grey and white. You can't change much of it now, but look up the best sale in the area, and copy what they did. Someone else already provided proof of concept, just copy them. 

4. The pool is clearly dirty in the pics. Also the pics that highlight the powerlines... Not ideal

these might seem nitpicky, but I sell a lot of houses and buyers are nitpicky. 

5. Price is the cure-all. But ideally you'll get more if you remedy the above 4. I also wouldn't use words like transformation in the listing of my flips. You're alluding to the house once being in poor condition. Use words that excite people like, upgrade, remodel etc.

6. Staging never hurts

Ditto Josh. New, professional pictures is a must. Bite the bullet of $100 for photos, fill the unit quickly and you won't lose $1800 for another month being vacant. Maybe drop to $1750, I don't think $1800 is crazy though.

Use chatgpt to rewrite the description. Don't say that "tenant covers electric." Rather focus on what you're doing for the tenant. 

" Owner pays water, sewer, trash."

I have a friend that charges like $85/door/month to manage. He also charges a lease up fee. Up to you though, I manage my own stuff but my question is, how easy is it for people to view the rental with you in Germany? Renters are typically looking to act quickly and avoid any hassle to find a place. If someone's interested, how quickly are you calling them to show them the place?

Ill probably keep 3-4 and sell the rest. We've got 10 new ground up projects going right now.

Thanks guys, Im more curious about 3-4 beds vs 2beds. 

Understandable to want 4 units. But for a duplex, affordable 2 bed units, or more expensive 4 bed units?