All Forum Posts by: Katie Neason

@Brian Adams is your 3% fee of the total cost?  I am working on a $3.7MM deal.  The acquisition cost is $375,000, construction cost $3,080,000, soft costs $137,000, Contingency $150,000 for a total cost of $3,742,000.  Would the 3% be of the $3.7MM number?  Do you collect it all at once (at closing or in phases).

How do you structure your returns? Do you typically offer a preferred return? If so what is the number? After it is achieved do you split 50% to a certain number etc?  I greatly appreciate any help and guidance you can give me in sponsoring a deal. Thanks!

like others have said, make sure you have included all your costs so at least you know what you are making going in. 

I would list it in MLS all day long. It is worth the 3% to sell it. Factor that cost into the deal.

As far as financing, it depends on the sellers timeline. Generally, flipping deals are from motivated sellers and what you are offering in exchange for a  well below market price is an all cash fast close but every deal is different. 

As far as the previous comment of a 50/50 split being a bad deal. That is pretty common in my area. One party provides the money the other party provides the deal and manages the project and then it is split 50/50. 

Is your mentor a contractor or a flipper? I would be careful with a mentor that is a contractor. Being a contractor and being a flipper are two very different things. If you were looking to be a contractor, then I would call a contractor a mentor. If you are looking to be a flipper then I would seek a flipper as the mentor. I would think a flipper would be very familiar with the financing side. A contractor not so much. What is your relationship with the mentor? Is this your first deal together? Check references. 

Good luck!

that is an interesting response from the city.  Every city is different and your officials would know best but you need to be zoned to allow for your desired use which is a completely separate issue from replatting.    It could be that those have to happen simultaneously or one slightly ahead of the other to get the end purpose accomplish.  When we rezone  property in our city, I set up a meeting with the city staff that handles development services which includes the city engineer, fire marshal, and city planner to discuss our ideas and what obstacles they foresee, understand the process, and find out how other rezonings have gone in the area.   Technically the city does not have to support you rezoning the property for it to pass but it is an uphill battle and one you will likely lose if the city doesn't support your project. At least that's what I have found. If you are in a city that isn't very open to meetings and sitting down to talk I would find a local civil and talk to him about your ideas. He will understand the process with the city and can give you a proposal of cost and timeline. 

We have done a few shiplap walls but the are existing walls in a shiplap house so not sure on price per square foot. 

Congrats!

I just finished phase I of a small Townhome development. I have set up the HOA and CCRs. The HOA covers roof repairs, common drive and fencing. I need to get a property insurance policy for the HOA to cover these items. My insurance broker is trying to sell me a policy that covers everything from the studs out like a condo. It is very expensive and covers items not covered by the HOA. Has anyone insured an HOA before with Townhomes?

Here is a before and after of a couple of simple all siding houses that we have given facelifts to on a budget.  Hopefully it will help and hopefully the pictures actually post. 

It sounds like you may be focused on the wrong thing. How much you pay (regardless of who you are paying it to) should be determined by your analysis.  Either the deal works for you or it doesn't. 

I would pay $1,500 (or $3,000 or more for that matter all day long) if someone brought me deals that fit with in my model and I was able to make my minimum returns. 

Interestingly, you noted in your analysis that for $4000-$5000 you could increase the returns significantly. In this statement it sounds like the $1,000 difference is in material, but the $1,500 difference between $1,500-$3,000  is possibly you being taken advantage of. 

Good luck! 

If she is not paying for it and it will be on your property (which it will) I would leave her out of it. I had a similar situation but we were paying to put a fence across the street on the neighbors property to hide their "friendly" vicious dogs and house with boarded up windows. They were very grateful and agreeable for us to pay for a fence for them... and then the fence needed a gate, it had to extend further than we wanted, it had to tie into another fence, etc. etc. With an entitled society "free" means the recipient has the "right" to get what they want the way they want it at someone else's expense. In your situation, I would avoid that all together and build your own fence on your own property. 

Which Walmart? 1/2 way between blind and A&M is no man's land if you are targeting students. Feel free to PM me the street and I will give you my humble opinion. Good luck.