All Forum Posts by: Lou Veiga

Thanks @Gerald Harris

I'm definitely take a leap of faith. I'm a little scared but I have to keep the momentum going. I have gotten beaten out on some other offers on other properties. The market around here is very competitive which is why I put my offer in where I did.

I already spent hundreds of hours reading and trying to learn as much as I can on the forum. I figured even if I break even on the first one, I will have learned so much.

@Jacob A.

This is a cash deal which is why there is no financing costs.

@Timothy Smith

I will be doing most of the work myself. So yes, most of it is just material costs.

One of the things I battle with is how much work do I put into it. For instance, the hardwood floors are not too bad (I'd give them a 6 on a scale of 1-10). Do I still go ahead and have them re-finished to make them look new or keep as is? Also the furnace is about 18 years old (replace it or keep it).

I'm being a little conservative on ARV. I think it's more like $220k. Do I cut a few corners and save some money on the re-hab? or try to make it perfect to get top dollar.

I submitted an offer on a property that I looking at flipping. I haven't heard back yet. I'm expecting to get a response tomorrow.

I wanted to post the numbers and get everyone's thoughts on the overall deal. The property is located in New Hampshire. Here are the numbers I'm using:

Purchase 139200

Closing - Buy 3000
Closing - Sell 3000
R.E. Sales Commission 12000
Taxes 2500
Insurance 500

Windows 3000
Paint 600
Trim 500
Kitchen Floor 500
Living Room Floor 1100
Refinish all Hardwood Floors 2700
Furnace 3500
Hot Water Heater 800
Cabinets 2500
Appliances 3500
Countertop 1000
Sink 200
Doors 800
Garage Door 800
Dumpster 400
Gutters 800
Roof Leak 500
Full Bathroom 2500
3/4 Bathroom 1200
Bulkhead Door 400
Misc. (knobs, locks, lights, etc) 2500

Total Investment 190000
ARV : 215000
Profit: 25000

What do you think? Do the numbers look reasonable.

I'd love to hear everyone's feedback.

Hi Dan,

Welcome to the forum!

That's fantastic! Is that all sweat equity? If it is, that's amazing.

I think you'll find various opinions on how to get into buy and hold. But you've definitely come to the right place. Spend as much time as you can reading the posts, listening to the podcasts, and go to a few REIA's to network with local investors.

Hey @Joel Owens

Thanks for sharing that. It's very interesting. I was surprised to see New York as one of the top three that people are moving away from.

Congrats guys! I love listening to the Podcasts. It's great to hear the stories of how people got started, their strategies, tips, mistakes and success stories. It's very educational and inspiring.

After listening to each one, the only thing I don't like is having to wait another week for the next one to come out.

@Steven Hamilton II

Thanks for the response. When you say to keep good insurance, are you referring to insurance for the partnership? I'm not familiar with partnerships. I'll have to look into that some more to learn more about it.

I do like the idea of having a separate account to keep the accounting a little easier. I am getting an interest free loan from the private investor. He's basically supplying the funds for the purchase, and I will be paying for the rehab. The other partner will be doing the work (along with myself). So a 1099 for him might be the best approach. Can the profit at the end flip be considered interest on the loan and a 1099-int be issued to him?

I'm heading in the same direction. I plan on doing a flip. The property will be held in my name, but I'm using private funds to buy the property. Profits will be split 3 ways. What the best approach to distribute the funds at the end of the flip so that I am only liable for my portion of the profit?

Hi Brooke,

Welcome!!!

Apparently Chelmsford is a popular place...My wife is also from there. I'm originally from Lowell, but live in Nashua now.

@Joel Owens Maybe our wives know each other.

There's a Black Diamond event in Worcester tonight.

@Ned Carey

Thanks so much! I can't believe it's that simple...How did I not try that. WOW!