All Forum Posts by: Roman Pak

Thanks @Michael Lee I am concentrating in that $100-190K range. I think you are right about finding deals off the MLS. I'll have to look into direct mail and perhaps reach out to wholesalers in the area, if there are any.

@Mirinda Lowe I guess I was kind of talking myself into it. It's just so hard to find a property in my budget and in this area. Most investors are buying in the $200-250K range in my area.

I'm not necessarily focusing on REOs, it's just the way this worked out. I figured the first deal should be done in the "traditional" way. Find a property on the MLS, fix and flip @Michael Lee

UPDATE:

Just heard that we did not get the property. Bummer!

Status Update:

On Saturday I put an offer in on a homepath property. Asking was 169900, I bid $153K. Yesterday, got a reply from them asking for highest and best bids due by noon today, and they said it was a multiple offer scenario. I upped my bid to $165K. Right choice, should I have gone higher? Although, any higher and I may not make any money on it, or very little.

Seeing as this is my first flip, I'm finding it hard to estimate renovation costs. I had a close friend of mine tour the property with me and he estimated reno costs at about $20k. My agent, who also does flips and invests in real estate, estimated the reno costs at about $18K. I've budgeted $23k when running my numbers.

My other point of concern is that most homes in the area are 3/2, and at least half of them have basements. This property is a 3/1, and no basement.

This property is in a nice area, highly desired for its starter homes and mix of good schools and great neighborhoods.

Although the numbers look good, at the moment, why do I feel like I may totally screw this up?

Ugh.

@Larry Smet Good info, thank you.

Found a few properties today, that seem like candidates, however, they are a bit more expensive (asking price) then I expected, especially for the condition of these homes.

Does anyone have a rule of thumb for an ROI figure? What should I be aiming for?

At asking price, only 1 property makes a tiny ROI (like 5%). All the others are negative (by a lot).

I have to get the properties at a significant discount to get my current ROI percentages, which range from 70 to 117%. Is this wishful thinking?

@Brie Schmidt yea I guess I expected them to ask for more. If its OK with you I'll keep you in mind for any future projects.

@Brie Schmidt No interest, pure equity split.

Thanks! @Timothy Riley

Over the last several months I've spent a significant amount of time reading books, BP forums and almost anything I could get my hands on, to prep myself for my Real Estate journey.

I've finally lined up a hard money lender that is willing to work with me on doing a flip in the north Chicago suburbs. They are requesting that we do the deal and split all profit 60/40. They get the 40. They are willing to lend me up to $80K with cost of rehab included.

I have a great real estate agent lined up and have several options for RE attorneys.

Does anyone have any recommendations or insight on doing a deal like this?