All Forum Posts by: Ronnie C.

@James Wilcox I'm On the TN/KY border in Orlinda TN. I prefer to build in Franklin but will go to other areas. BG cost per foot is high to build vs Franklin  (labor and lot cost) and BG has it's share of New construction sitting not going anywhere also. Yet they keep building. 

I looked at lots in a almost finished subdivision in Scottsville in October. None of the houses that were listed for sale have sold as of couple weeks ago when I last looked. 

I just hung up with a  BG agent who has some new construction lisitngs in Franklin, asked if these houses were listed before the builder broke ground or has it/they been sitting there finished for 250 days. Realtors response was it/they were just dry walled when listed, and  Franklin like other places is a bit oversaturated with new construction at the moment and the higher rates are not helping any. 

I live on the TN/KY border. I build in southern KY, don't want the hassle and expense of getting a TN GC license. Anywhere from $250k up in new construction. I have been watching it in southern KY since late '22 when I stopped building. Took me 6 months to sell 2 new construction houses and had to mark them down 1-$30k and the other $40k but by the grace of GOD, I still made a great profit, and was able to move on. 

I kept watching the market and had calls from developers trying to sell lots. I'd see 70 new constructions at a time just sitting there with maybe 10 under contract and no guarantee they'd close. 

Then I started watching the TN rehab market, and how fast they were selling. That's where I need to be. Still can't find a deal in TN. 

I haven't tried to find a flip/deal in KY yet but I'm afraid it'd be the same thing. Too many people trying to do it and overpaying from the start, or not knowing what they are doing, just saw it on TV and think they can do it.  

 Building lots are getting harder and harder to find! However, I know where I can still get them. The reason I stopped building new spec houses is because the market and the high interest rates. New construction in my area is sitting on the market 200-300 days going no where! 

But they will buy an older, cheaper,  rehabbed house in a heart beat. 

You misunderstood :). I AM able to turn more than 15 rehabs a year, "IF" I could find the deals! I haven't been able to find a deal. 

If you can't make a minimum of $45 grand on a deal, it's not worth it!!! I can/could easily make that off a new spec house and more. Unless you are turning in volume 10-15 or more houses a year.  I could turn 15 plus rehabs a year! But i've been struggling for almost a year to get 1 deal! $10-$20 grand on a deal is pathetic and not worth my time! Heck, you gotta pay taxes on it too, and you also run the risk of the unforeseen and problems along the way with a rehab.

Lets see, I paid my fees and got back on MLS last May, and signed up for Privy. Did nothing for 3 months straight but sit at this computer looking at potential on market deals and crunching numbers!

Now I just call or text agents and say hey, I'm a flipper, before I spend time and travel to go look at this listing, how flexible are your sellers? It's not worth the 1/2 hour to hour trip (one way) to go look at a potential deal, then crunching numbers, then spend another hour on all the paperwork required to submit an offer in writing on a MLS deal.

I also used Jerry Nortons "Flipster" last year for the free trial period! What a joke! If you are wanting to take the time and expense to mail people, I'd spend DAYS scrubbing list of people to mail to. If they haven't owned the house for 15-20 years (with a mortgage) then they aren't gonna have enough equity for you to buy it as a flipper. So i couldn't depend on Flipster, and the comps for on market properties or even an off market address I ran through Flipster was WAY-OFF. Nothing beats MLS and training from a broker who'd been in the business 20 years, and partial training from an appraiser, and this was 22 years ago. I had to school a so called wholesaler last week on his comps, lol!

I also tried Property Radar for a trial period in this time as well. Nope.

I stopped doing mailers, cold calls, etc back in 2007 and relied on MLS. I always got my deals and best deals from MLS or wholesalers who used the proven formula of 70% of ARV MINUS REPAIRS MINUS WHOLESALE FEE.

I found out the hard-way my 1st year that 10s of thousands of dollars or all the time out of my life trying to save money and do it myself was not worth it to maybe get 1 deal trying to buy direct from owners.

Best of luck to ya :)

 I've considered Ohio, heard Cleveland was strong but not clear if for just rentals or true flip meaning rehab and resell. I need to build more cash. Rentals can't do that but flips do. 

You said you moved from Florida, lol Miami is where I want to be! 

 Thank you for the idea. I'm sure it won't be long before the market is saturated with people doing that. Holding wouldn't be helpful as I need to build more cash, but it's worth checking out. 

I'm on the verge of completely giving up!! I can't retire, refuse to work for someone else,  but I do have cash built up (Thank GOD), and a 850 Fico across all the Credit Bureaus. The reason I don't have more cash is thanks to a former business partner and 5 years of litigation. I got back a drop in the bucket and have been trying to rebuild ever since. Hence why I say, "the only ship that don't float, is a partnership!!"

I need flips IN VOLUME to build cash and have money to live on. Rentals can't do that!!! 

I quit building last year (slow market/high rates) and have been trying to find a flip for quite some time as they seem to move rather quickly on the market surprisingly. All I come up with are so called "wholesalers" with not even a marginal deal. Back in the day when I started flipping 18 years ago it was 70% of ARV minus repairs minus wholesale fee. These wholesalers TODAY are either clueless on rehab cost, real ARV and/or people are actually overpaying, which I have seen that quite often on MLS. (I have TN re license)

Example: A Realtor (roll on floor laugh my butt off) paid $180,000 for a house last year that might go for $250 ARV today! 5 months and at least $40k minimum later she list it at $265k (still laughing) it closes at $245K cause it wouldn't appraise! It's not a Christian thing to say but I hope that all these people out here not following the 70% rule, or people overpaying for rehabs choke on it!

I have been hopeful in finding a deal out of state as I have a Realtor in that area that believes I can find the on market deals i'm looking for. Problem is finding a investor friendly GC in that area. I've spoke to 1 I like so far but Would like to have others on my team as well. I'm kinda doubtful in finding on market deals there though and don't want to waste the Realtors time even though he thinks it can be done. 

The internet, gurus-advertising constantly in reels feeds, and TV shows has killed this industry. 

Now useless NAR settled in that dumb lawsuit that they should have never lost and that's just going to add to more problems in the real estate market. If it ain't broke, DON'T FIX IT!! All the buttholes suing and their copycat suits are basically suing McDonalds for hot coffee!!! This is going to add to more trouble in the markets.

I don't see how I can make it any longer, I keep asking God to open a door for me.

Meanwhile, I keep practicing "Welcome to McDonalds, may I take your order please!"

Maybe I can get a door greeter job at Wal-Mart?

 Hello. Thanks for your inquiry. Would be happy to chat with you. I responded to your PM a few minutes ago and will be monitoring more closely. Haven't been on here much this week. 

Thanks

Ronnie

Check your inbox/connection-request please. Need to meet wholesalers down there.