All Forum Posts by: Sally Hanan

If you're the acting GC, do you have a preferred order of work when you do a full cosmetic remodel of a property, or do you just work with whoever is available each week? I'd imagine you'd take care of the roof and foundation first, then plumbing and electrical work, then rip up the flooring, then do the kitchen and bath work?

I called this a value proposition need because I'm finding it hard to quantify our value in this. 

I will be meeting with an investor soon and she wants me to come up with a number of choices re what percentage she would get vs. what we would, were we to work together on a flip.

She:

• Realtor
• 15 years in the business
• has done a number of flips
• is ready to invest up to $350k
• has no free time

Us:

• have been book learning and watching for 20+ years
• have done no flips
• have about $11k to invest
• have plenty of three time between three of us - me, hubster, son

What sort of percentages would be fair to both of us if we put in all the time and she put in all/most of the money? I've heard 50/50, 50/25, just the interest on the loan, and more. What have most people walked away happy with?

Thank Jason. I have two contractors with a decent bit of experience ready to work on stuff, so at least I'm not completely green, but you're right - very slim pickings. I also talked to a mortgage lender and per her advice, I'm going to try and get my tax return for last year sent in early to see if the numbers can get us a conventional FHA loan. it would suk ballz to have to live in the sticks of Leander or Georgetown for a year, but you do what you have to do.

It's New Western - too many great reviews to count, and their project analyses are usually on point.

Great advice from all of you. Thanks, and I'll keep saving and look for a better ratio of initial cost to ARV.

The thing is, all I have is the 5k downpayment to the wholesaler to get the house, so I'd have to finance it all one way or another. With this being the first one, my hope is to get 10k out of it by the end so I can move up to less financing each time. That's why I'd be happy enough with 10k but only on the first flip. 

If I had 35k of my own to play with, this would be a different story.

As a first-time flipper of a SFH with a goal of making at least 10k on the project, would you recommend financing everything with hard money (10.6% and 3 points, loan for $189k, interest $1,717/month) and a personal loan that covers the cash to close and hard money interest ($993/month)? I have a good contractor to work with.

I'd much rather present the contractor's portfolio to private investors and pay them the principle and interest back at the end, but I'm trying to come up with alternatives if that doesn't work out.

Purchase from a great wholesaler: 150k

Closing costs: $7,605

Cosmetic rehab: $30k

ARV: $225k

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120 day in and out average in Austin, interest $10,840, another 4,427 if sale is slow