All Forum Posts by: Patricio P.
Patricio P. has started 5 posts and replied 72 times.
Post: Using Data to Analyze a fix & flip
- Sacramento, CA
- Posts 74
- Votes 21
Originally posted by @Larry Turowski:
@Brian McWethy It's tough when you are starting out. Rehab cost is probably the most time consuming. The easy way out is to pay a trusted contractor for their time to go through the house and do a materials and labor bid/estimate on your scope of work.
Personally, I either do that or just ballpark the rehab myself. I haven't got time to calculate everything out ad nauseum. I just make sure there is plenty of margin so if I'm low, even by 30%, I'm still fine. This takes experience, though.
Thanks for the insight Larry. I'm not the OP but I have a follow up question. For someone who is starting out, paying someone with experience does seem like a good option. It gives you a chance to learn how its done and avoid costly mistakes. That being said, what is the best way to do this? Is it only during the inspection period or before making an offer?
Post: Sample letter to absentee owner
- Sacramento, CA
- Posts 74
- Votes 21
@Sydni Chattman who is the owner of yellowletters.com and also was on podcast 77 and 81. He has repeatedly stated that he is happy to work with folks on BP to set up a marketing campaign plan. I would contact his office and make an appointment to speak to him as there is nothing to lose in my opinion.
Post: How We Bought 3 Houses in 4 Weeks! House Flipping Edition
- Sacramento, CA
- Posts 74
- Votes 21
Are you really only sending 200 letters per month or was that a typo? It seems that 3 deals in one month from 200 letters is an incredible return. Am I missing something?
I don't personally have experience with direct marketing but it sounds like that would be a very labor intensive process. Typically what I hear is that most folks buy a list from a provider like listsource.com where they select certain criteria to get leads, then they send direct mail targeting that list trying to get people to call back. It's when they call back or visit your website and fill out your form that you capture their contact information.
Post: How do you scale from 2 properties to 100?
- Sacramento, CA
- Posts 74
- Votes 21
There are many options available to those who have a good deal. You can go into a Joint Venture with someone, borrow from a Portfolio Lender, borrow Private Money, work with a Hard Money Lender, etc.
Post: No more excuses...First deal done!
- Sacramento, CA
- Posts 74
- Votes 21
Congrats on your new son and also picking up that first investment!
Can you tell us a little about the process and your experience during this time?
Hello @Account Closed,
I have read some of your previous posts and I am unclear on some key items. Is the company you are starting going to be based in the US and purchase property in the US? Where it is located will make a big difference.
Post: When Everyone Says It Can't Be Done - Another 2 Houses Sold
- Sacramento, CA
- Posts 74
- Votes 21
Originally posted by @Adam Bartomeo:
@Eric Jackson I normally get my get my properties from 3 sources: MLS, direct mail, and word of mouth. #1 was a recommendation from someone that knew I flipped houses.
I'm sure people have also told you "It's impossible to get deals from the MLS, they've all dried up!" Right?
Post: Paying Contractors
- Sacramento, CA
- Posts 74
- Votes 21
Originally posted by @J Scott:
Unlikely the IRS would accept deductions for cash payments made without, at least, an Independent Contractors Agreement and a receipt.
Are deductions the only purpose of issuing the 1099 or is it a requirement regardless, which if skipped could land you in trouble?
Post: Paying Contractors
- Sacramento, CA
- Posts 74
- Votes 21
Originally posted by @Charles Socci:
That is tricky!!!
1099s should be issued for anything over $700 ( I think that is the correct number)
I would have a subcontractor agreement with anyone that you use regularly, and job contracts are also helpful, otherwise, they could be considered an employee, and then you have payroll taxes, and workers comp to deal with, not to mention the liability!!!!
If you ever were to get audited, the more documentation the better!!!!!!
So let's say you're just doing renovations on your own home that you occupy as the owner where title is held in your personal name. Do you have to issue 1099's for this kind of thing or only if you are operating as a business?