All Forum Posts by: Mateusz Prawdzik

@Marc Weisi @Charles H. @Ben Rutkevitz Why don't you guys come closer to me in Bergen County or Union county? I feel that unless you are very well known, getting deals in JC will be really tough for good cap rates.  There is definitely still lots of upside in JC especially in Greenville but I feel that better returns can be made more inland and around the areas where I am flipping. What kind of investing do you guys want to do? Passive or Active?

@Scott Culver Exactly what @Account Closed said... No matter what happens and how many houses down the line you are, never settle and always get 3-4 estimates because even thought one of your guys might get you a good price the first time, you need something to compare to and some times the same guy will slowly start to raise his prices, so you have to be able to catch that.

I would drive around in your area or the area of the property and stop at any house that you see construction being done and get the numbers of the guys working there, don't get the GC numbers get the actually sub's number. Sometimes Angie's list has someone good but you really need to look as most of the people on Angie's list are expensive for quality you can get for half the price. 

I am not from your area, so I can't recommend anyone, but do what we said and you'll find someone quick

@Damien McDonald If there are no new constructions in the area or the area doesn't call for development, why are you developing there? Is it for you to live in personally? Selling the property is a shot in the dark because some people might want to live in a new construction when the area is not developed, but then MOST people that live in new constructions want to live in areas where they aren't the only well developed house on the block. Most people, from my experience, like to live next to similar houses. 

And like @Wayne Brooks said, it doesn't matter what you build for... $100-125/sqft is average depending on the finishes, but it matters what you sell for.

@Barry Cooley To give you some insight on the flipping side because it seems like most of the people are saying for the rentals they do it.... for every flip that I purchase I create a separate LLC to purchase the property under .. 123 ABC ST LLC and then I make a separate account in order to keep all the expenses separate from everything else and the other properties that I have. I get separate checks and business debit cards as well for all the accounts as well, I find this to be the easiest way to organize everything and make life super easy at the end. It costs $126 to do each time.

I feel that this has tax benefits, liability benefits, and is way easier to manage. 

@Herman Chen Just make sure that you have the attitude to ride the times of appreciation and not get in where everyone else is getting in. As a beginner you are probably not the first one in the line to get deals from wholesalers or agents so that means the deal you get aren't the best. If you are looking to get started and want to learn, I would only take a deal that is a really good deal where you can make lots of mistakes and learn from them and still make money because the spread is large enough. This is only my opinion, I did that to a certain extent but I got lucky because my first flip was in a town where the property value appreciated 30k in 3 months. So I made more than I expected and learned a lot because I made tons of mistakes. 

@Emmanuel Lopez I develop and rehab yes. I am trying to do more additions or total gut jobs than minor renovations. I don't like to do touch up jobs. I am doing one in Elizabeth now, but I am just giving it to one guy to do all the work and not really managing it at all. 

@Steve A. I am not a big fan of Nick Tang so I don't go to his meetups, but maybe we can meet at another meet up like Kyle's or Glen's... Keep us posted on the progress of your flip, it would be great to see how it coming along ESPECIALLY because it's like on the TOTAL opposite side of the US.

@Ben C. Hey Ben , are you looking for a contractor/project manager?

@Kyle Merritt Do want @Donovon Rogers is saying. Go to local REI meetups and look for cash buyers. Something that I did when I was first starting is went to every single meetup in the area and made sure that I was known by anyone and everyone there. I must of spent 200$ a month for admissions I went to so many. The key is to not be like the other wholesalers, don't promise deals and then no provide, don't market deals that you don't have under contract yet, and most importantly don't lock up deals for bad prices that don't make sense.

Most wholesalers right off the bat don't get the rehab estimates correct because they are new to the business and if they don't have any construction knowledge, usually butcher this part tremendously... The key is to butcher it a couple of times and learn. Get contractors that you trust to walk the property with you and tell you exactly what costs what and learn from them. The first couple of properties always have a contractor and then after a while make sure that you go and do it alone so that way you are applying what you are learning. Talk to investors and builders also, make sure that you shadow them and ask them what they are paying for what...

The best way to get good at something is to do it over and over again until it becomes innate... Once you get good, people will start asking you for help.

If you have any other questions about the process or anything REI related, please connect with me. I will help you like I have helped Donovon and many many others on BP.

@Michael Plante Just have the attorney you are going to use for the closing provide you one? If that isn't an option for you just look online for a sales contract, there should be plenty. Also, on another note, the best thing to do is have the buyer provide you a contract since he is buying the property "ASIS." I, as the buyer, usually always provide the contract if I am buying as-is.