All Forum Posts by: Miller McSwain

@Brandon Abbott

That certainly sounds like a great way to get a more accurate estimate. I'll likely make a spreadsheet for that calculation instead of doing it by hand every time. Haha!

Another thing to keep in mind. Although you will have to pay PMI with both of those loans, with the FHA you will have to refinance once you reach 20% equity to get the PMI removed. With the conventional, it should go away without needing to refinance. That doesn't exactly answer your question, but it is information that I recently uncovered and found interesting. For that reason, I would choose the conventional.

I heard this on the podcast the other day, but I do not recall which episode. I am currently listening to the newest releases and catching up on all the old ones, so it is a bit jumbled.

If you are still under 18, I'd recommend spending a lot of your free time educating yourself. Some of the best things you can do are:

1. listen to the BP Real Estate Podcast and BP Rookie Podcast
2. Read lots of real estate books! Set a goal to read one per week or one per month. Having a goal will definitely help keep you on track!
3. Hang out on the forums and learn from investors

The other thing I would recommend is to develop good money habits. The BP Money Podcast is a great resource for learning financial tips. In particular, I would recommend:

1. Tracking your spending
2. Saving a large portion of your income (30%-50%).

I became interested in finances/real estate in high school and followed these steps. It has helped me tremendously along my journey thus far!

@Richard Helppie-Schmieder

That sounds like an awesome service, especially if I ever become a remote flipper/rehabber. I'll certainly check Roof Scope out. Thank you!

@Greg Dickerson @David Lee Hall, III

That makes sense. I should have mentioned that the rule of thumb I'm looking for would just be for a super quick estimate upon first seeing a property. I would certainly use more precise methods before purchasing.

Thank you both for your input!

I'm developing repeatable processes for house flipping and was wondering if there is a quick way to estimate roof area. 

I think I've heard that the size of the roof can be estimated by doubling the 1st story sqft of the home. As an example, if a single-story house is 1300 sqft, a quick estimate for the roof size is 2600 sqft. Did I hear this correctly, and is there a better rule of thumb?

Thanks!

You are in the right place! Welcome to the forums!

You mentioned connecting with people. Definitely attend any of your local REIA/BP meetups and network with other investors (https://www.biggerpockets.com/...). People say it all the time, but networking is certainly key in this business. Investors are always looking for great deals, but they won't be buying them from you if you never meet them and ask!

For education, I'd recommend browsing this forum (wholesaling forum) every day. Additionally, consistently listen to the BP Real Estate podcast and consider reading "The Wholesaling Blueprint" by Luke Weber.

Hi Nir. Welcome to the BP Forums. I'm glad you made your first post!

If you are interested in wholesaling, you will definitely need to become an expert in finding off-market deals. Here are some methods you should try out in order of money required.

1. Driving for dollars (free!):
One of the easiest and cheapest way to find off-market deals is by driving around your local market and taking note of properties that look distressed (boarded windows, old cars, uncut grass, etc.) Once you have a list of these properties, you can contact the owner by mail, phone, or door knocking.

2. Ask an agent (free!):
You can ask your real estate agent for expired listings that were on the MLS. It is possible that some of the expired listings did not sell because there was an issue with the property. If you can find a solution for the seller, you can probably find some good wholesale deals.

3. Direct list campaigns (cost depends on size of campaign):
Lastly, you can purchase data on property owners in your area from places like www.listsource.com . People often purchase data like equity lists, probate lists, tax delinquent lists, etc. You can then market to these individuals by mail, phone, SMS, etc in hopes that they are motivated enough to sell at a discount.

There are tons of strategies, but these can get you started!

I agree with @Lynnette E. . If the contractor has bad credit and no money, he likely does not possess great management skills either, although this is not necessarily true.

I do think that giving a contractor a slice of the deal is a great way to motivate them to work hard on your project. But if the contractor doesn't have a completely clean record, I wouldn't take on that risk and give up a large portion of your profits. 

You can still motivate them, however, by giving them bonuses. I would recommend giving bonuses as milestones are completed by a certain date instead of one large bonus at the end. By giving smaller bonuses throughout on a schedule, you have more assurance that work will be completed on schedule for the duration of your project.

Networking at REIA/BP Meetups is likely the most common way to find cash buyers, but if you get creative, there are many other ways. Some alternative strategies are:

1.Check your county assessor website for absentee property owners near the property you have under contract. Absentee owners that own multiple nearby properties will possibly be interested since they have already performed research on the area. If they aren't interested in buying your deal, maybe they will be interested in selling you their current property!

2. Get an absentee list with only 100% equity owners. This indicates that the property owner is an investor and owns their property free and clear. This is an indication that they may have cash available. You can get this data from listsource.com or an alternative.

3. Visit auctions and ask frequent bidders if they buy from wholesalers. Individuals who buy at auctions have to provide a check AT THE AUCTION to purchase a foreclosure. If they are at the auction frequently, then they have lots of cash to purchase deals from you.