All Forum Posts by: Andy Luick

I had a lengthy chat with a husband/wife team who were trying to replace his income flipping (he'd lost his job). They bought 2 houses without a real team...even though they were here in Atlanta. They took advice from realtors but ended up over improving both houses and they didn't sell. They then rented them out and the real disaster started. They rented both houses out to 2 "sweet" nice looking families....while still trying to sell the houses as turnkey rentals. Neither set of renters were cooperative. Both ended up not paying the rent....first they started paying slower...then not at all. Owners had to file evictions on both....got one out but they did $20k in damages to the property. the other filed for personal bankruptcy. To date, the investments have almost cost them everything including a marriage.

We have convinced the tenant who filed bankruptcy to move immediately. The house needs minor painting. We will turn both units into shared housing and sell them off with a 10% net return to passive investors for 18 months as we do with all of our products. Even with our program, they will still suffer a loss on the sale. Once they sell, they will redeploy with us and earn at least 20% on their funds without the headaches of landlording.

So how much can you make flipping? just depends on who you are, where you are, the model you are using and who you have on the team. These were both very well educated and smart people.....they nearly lost everything. If you want to invest in your market....find an agent or broker who is also an investor...those that are not, have no clue what they are talking about as was the case with the agents used by this couple. happy investing...and happier returns!

same range in atlanta - $650 to $750 with materials and install. Some can do it cheaper but there are usually problems...the units are "reconditioned" which often means they got it off Lowes or somewhere used, wiped it over and sold it to you!

I have to apologize - I am often tired when posting here - so yes 3.5% plus 1.75% MIP...and an interest rate around 4 or sub-4%... still the cheapest deal an investor is ever going to get. I'm not a mortgage person nor do I wish to become one. Up until 2013, you could always refinance once you had 22% equity in the property and recover the MIP that was pre-paid. Those rules have now changed...so what, if you qualify for the loan it's a true 30-year loan and at current rates....a huge bargain over time. Plus, you can roll any upgrades or repairs into the loan and still only 3.5% down out of pocket. You can't get a better deal than that unless you find someone who bought one of these and is either stuck and wants out or is older & retiring and is willing to carry a note back on the property. I've done quite a few owner financed deals on duplexs and tri's over the years....all were good deals for me.

Here he is buying a 4-plex or quad - if this is his first investment, it's a great idea for him to occupy one unit and rent the others. Are the 2-bedroom units or what are they? If they are and you have the parking, turn a couple of the units into shared housing.....it will boost your net rents and you won't ever have any vacancy. I love shared housing and our model turns losers in winners every day here in Atlanta.

How many doors in the building and how much will it net rent for? I JV on most of the deals that I do these days. We make about 10% on the contracting end and split profits 50/50 on most deals and 70/30 where investor has put up all of the cash for purchase and rehab....which is you case here.

If you can live in one of the units, you should qualify for the 203k loan program.....just find a lender in your area that offers it. You'll do 3% down and can include repairs in the loan....best loan program ever for an investor/occupier. Happy Investing!

What's incredible is that you're able to get people to pay $2k a piece for a field trip but if it converts into a profitable i suppose it is money well spent for some. I usually do this once a month for a small group for free. So if Myk hustles and brings in $6k worth of revenue she gets to go for free....start hustling Myk,,,,,or just keep reading BP for free......Happy Investing!

Welcome! BP is a great place to learn to earn. Good networking Ops and an education for the taking. I've flipped over 2,000 homes over my career and still learn something new here every week.

Tubs are tough - we have a mauve one right now in rehab/rental/flip we are doing. Repaint with epoxy is a quick solution but it never holds up for a rental. We went back with a contrasting tile and probably a terracotta color for the ways with white trim. I'll post some pics of the finished product.

@Sharad M. - you must have some starving contractors up there. I'm not sure how you are turning that 3/2 for $20k in work...pics alone would lead me to believe it's double that...not doubting you just saying what it would take in our market. Are you holding these or flipping these out? Good stuff though!

Definitely get out and network. Hit the REI groups as many you will meet there have funds but have never done a deal. My group deals with a varied group of investors...some have $5k to put into a deal and are secured by mortgage on the property purchased....some have $500k+ and want everything that we do...and there's everything in between. Some are using SDIRA funds. We buy discounted properties but are also able to offer higher returns, 15% and up, because of what we are able to do with the properties. The investors are secured and protect....and you're going to have to be able to offer them that. The stumbling block will be that new investors want to talk to past investors...and most investors that you've partnered with successfully don't want to talk to anyone else! In my case, my best investors want every property we come up with...in most cases. They don't have an incentive or desire to help you reach out to other investors. Therefore, each deal in the model has to stand on its own.

The exit strategy will come all the time as well...how do they get out of the deal with some profits if things don't go as planned. All of our investors and JV partners are secured on title or own the property outright. In our JV agreements, we agreed to cash out private mortgage holders with 60 days notice...and, if they weren't in the deal for 12 months, their return drops from 15% to 10%. However, if we sell the property anytime during the year...which is always our goal, they get the full 15%. They can't earn these kinds of returns anywhere else..and most our partners feel good about getting great returns while creating affordable housing. Our other JVs can cash out after a year with a 20% return if they can't wait for the back-end sale...but again, in our model, our big payday is when the property sells off so our incentive is to work as hard as we can to make that happen as expeditiously as possible. Whatever model you develop you will want to address these points.

We also create a pretty strong referral model where a current investor or JV partner can refer others to our program and we will split our back-end profits with them on the first deal. That seems to be working well for us. Happy Investing!

Lot's of good opinions and experiences being shared here. There is a new string on this "seminar" stuff every week on BP. The bigger problem with this discussion on BP is that we have a TON of newbie or wannabe investors who read what's written but don't participate in the conversation. Some of us have 30 or more years experience in doing deals...others are still thinking about it after 30 years and thousands in education, books & seminars. As might say....you were doing it wrong for those 30 years and he has a good point. Just because something being done is not kosher with something like the Dodd-Frank Act....doesn't mean it's a problem for the deal is neither party complains about it. Don't take a lawyer's word for it either...there is a ton you can find out online....and laws do differ from state to state...another issue most of us have with the seminars.

Before trying to become a successful real estate person, try becoming a better quality person with a more pleasing personality. I often get deals where I wasn't the highest offer but the nicer person to deal with. There is specific knowledge that will help you but common sense goes a long way as well. If you've never taken it, invest in a Dale Carnegie course...or at least read the books. Timeless information on basic human interaction & psychology that will help you do deals...and prosper in life. People buy from people they like. No matter how clever you are, there is always someone smarter somewhere. I'm not the brightest bulb in the lamp but I'm not the dimmest either. I can't tell you how many times someone with "higher" education has tried to impress me with how smart they are. I'm all for higher education but you're not necessarily smarter because you went to business school or law school...you just put in the time and paid your money.

If you're going to be in business....it pays to invest in an education centered around that business. Just realize that may who can't do....teach. That's our collective issues with seminars....it is sometimes worth the fee just to network with other like-minded people....just use the reverse on what Jay had to say above...tell them you can't buy anything over $20 without your significant others approval. Most seminars are just a initial introduction, some basic information and an huge upsell for the "BIG EVENT."

You can get a ton of great information and contacts right here on BP. Look at posts various writers are posting and you will get a feel for their intents, their knowledge and their success. Some are brilliant...some plain moronic....but all of us can learn from someone else even if it's Forest Gump. Thanks for sharing and Happy Investing!