All Forum Posts by: Nick C.

I would say numbers aren't the only factor in the equation. Your father's plan to flip 3-4 houses to buy one rental might take a while. $300/mo not worth the headache of being a landlord is ironic, while glossing over the headache of flipping 3-4 houses, not to mention finding the 3-4 houses to flip. I don't know your market, but that's not an easy task where I am. It seems like a whole lot of work, effort, time and money spent to get 1 rental. 

Speaking on principle alone, you don't build long term wealth by selling off assets. And if that's the premise of the argument you need to be keeping the properties you find. BRRRR allows you to do that with a minimal amount of work compared to flipping houses, which is a full time job.

MHO is

Ryan-1, Father and Friend-0 !

Your best bet is to network, speak to friends and family, and hope someone you know has past experience with what you're trying to achieve. Hopefully they could offer a reference to get you started. If this doesn't work you could visit the area you're interested in and spend a little time there, set up some meetings with individuals you think could possible help. And if that doesn't work, try to network online with individuals who have a track record of success. Although this isn't the ideal situation, thank goodness for the internet! Trust your gut, be careful, use common sense, and it should work out.

If you're going to both be on the loan you better make sure you have the same goals not just for right now but 5, 10 years from now. I would line up a contingency plan in the event one of you wants out, what's the buy out going to look like? Also try to hammer out who is responsible for what, as far as managing the property. 

Every flipper is different, although most follow the same principles somewhat. A good starting point is at least a 20% ROI on the project. That goes up depending on how large the project is, or how large of a dollar amount is risked. Some shoot for a minimum dollar amount.

Taxes can be prorated for the projected length of the project. Most carrying costs, utilities, insurance, lender costs, is going to change depending on the property and the flipper. Your best bet is to ask each individual. You'd be surprised how differently everyone comes up with their numbers.

We keep a P & L statement for each property in Excel and also in a customized CRM software. A good starting point for a spreadsheet could be

(Resell price - Closing costs - Rehab) - (Purchase price + Closing costs + Lender fees + Holdings costs) and that should be your spread. You can customize after each deal is complete. 

We scan and upload all the receipts, HUDs, etc into the CRM. 

Hope this helps!

With no income I doubt he'd qualify. Why not just buy it together? Put the deed and mortgage in both of your names? 

If you're intent on putting it in just his name the best thing you can do now is have him get a job. The best jobs in college are waiting, bar tending, etc but he is going to need a job he can prove wages. You can definitely gift him the down payment, no problem there. 

No offense to your realtor but I would spend some time speaking with small local banks in your area instead. If you can show them your plans and make yourself a good investment you shouldn't have too much trouble getting loans. 

I would offer to close quicker, 30 days on a cash closing is a long time. Your competition likely advertises a quicker closing. 

As far as the calls from wholesalers, that isn't going to stop. I have no data to back this up, but wholesaling real estate seems to be the fastest growing occupation in America. I don't think the wages being made for the majority of wholesalers justifies this, but the possibility of making money is there.

I'm getting a "page not found" using that link. 

$85k off asking price is probably too low. But there's only one way to find out for sure and that's to submit the offer. Even if 99 times out of 100 the answer is no, you only need 1 yes to get a great deal.

If you're keeping the property as a rental you should have plenty of time to quiet the title, hopefully before you need to sell or refinance. 

Why not give the file to a couple of other title insurance companies to see if they'll insure title? Old Republic is more strict than others from what I remember.