All Forum Posts by: Colin Smith

Ok lets make some assumptions. 

Assume tap fees are paid as there is an existing house. 

What would it cost to demo the lot to start fresh?

What would it cost to build a 2000 sq ft, 2 story with a basement SFR with middle of the road features on a flat lot. Also assume I hire a GC.

No... I would say it is a lot harder than it looks and there are a lot more things to be concerned about than what you see on TV. Plus, they have the connections with professionals to get jobs done. You, on the hand, probably don't know the cheapest roofer, GC, plumber, asbestos remover, etc, person in town who is also reliable. It takes a lot more than you think to make a flip happen. But everybody has to start somewhere so by no means should you think you can't do it.

You could do a cash out refinance and have the best of both worlds. Not only will you have it as a long term rental but you can pull all that cash out of it and move onto your next deal. Just be sure if you keep as a long term rental it is something that will cash flow well and is in decent neighborhood good for rental properties.

I am looking at a wholesale deal to scrape a lot and put a new build on. I was curious to hear how much it's costing other investors to have the lot scraped and a how much a new build costs roughly as a $/sq. ft.?

I would start calling around to different builders and asking for quotes. Make sure they have a track record of good experience!

1. Make sure you do your due diligence and know that the tenant is actually paying their rent and know the neighborhood.

2. Talk to everyone you know who has money about partnering up with you.

3. It's ok if you have to say no or if the finances don't come together for you. There will always be another deal in the future.

Start with the podcasts here on BP. You will learn a lot!!!

Your down payment is what you need with a bank. What you're thinking of is how much earnest money to put down. Roughly 1% is typical for a regular transaction. However you're a wholesaler and everything is negotiable. You'll need some amount of earnest money, even if it is $1, so just negotiate something low.

While I do say over 2000, please know I am not sure if that includes people who are licensed but inactive. That was just a stat PPAR threw out at me once when I was just starting.

My only thought is if you are posting in other areas of CL that could trigger that error. You could try another email address to see if that works.