All Forum Posts by: Eric X.

@Alberto M.

The only flips I do now are either REO (cash sight unseen mostly), through wholesalers, and very very few retail sales on MLS. Usually it is an all cash bidding war and you have to be lucky.

Traditional sales can be done but the ones that are available have quite a bit of competition to win or they are just mega projects.  Margins are bit less these days as well.  I don't flip in warzone or even in C/C- areas.  They can be pretty profitable if you have a great team but I don't feel comfortable doing them there. in the B and A areas, it is truly slim pickings.  It really depends on your margins.  if you don't mind 10-20k margins, there are still some deals out there. But at those margins, you better know your numbers inside and out.

@Carson Eagle

It is unfortunate this has happened to you as a homeowner.  It there is anything you are unsure of get a second opinion next time around.  Sewer, foundation, electrical etc etc.  Home inspectors are good for a Macro overview of the home but they are not specialists in any one specific thing. My home inspector always calls things out and takes photos and advises me to get a second opinion. 

Good luck to you in your case. Legal cases are always a crapshoot.  I was in a multi plantiff case where we proved fraud and we still lost.  

@Alberto M.

I do both and the # of flips has gone down for the last few years due to lack of inventory/margin. Flips are like home runs (assuming things go well).  Buy and holds are like singles.  Either way, they will get the job done.  I flip the homes that I can buy at a good price but don't match my return requirements and I hold the ones that typically do.  Remember that if you get the ball rolling for buy and holds, you can eventually buy a house every month or two based on the cash flow from your rentals .

 Unless you are 100% sure of those numbers, I would stay away. Red flags everywhere. No flipper is going to give away a good flip.  He may give a bad or mediocre one but a good flip, most investor will find a way to get the cash to get it done.

@Carson Eagle

You are already in litigation. You will get an idea of how it will end based on how your attorney is billing you. Sometimes contractors don't pull permits even when they say they will. You won't win based off of that. Was there a problem still after the previous owner did work on it or was it fixed and then deteriorated after the fix? It will be a difficult game of he said she said.

The winner :The attorneys

I think the burden of proof will be on you to prove that the previous work did not repair the foundation and that the sellers knew about it.  

@Jessica Jaboor

I'm sitting in my home office right now. I have a sole member LLC. Each state is different but in Illinois, home office is fine. If you do, keep your documents meticulous. They usually do an office check within the first year or two to make sure everything is in compliance.

10 grand seems high.  I think mine was under 1000.

I used to manage properties in south side chicago...These were in the semi okay border areas.  Not full out warzone but not exactly safe.  Lets just say I don't manage there anymore.  I was paid nearly double what I charge to manage in the suburbs but it's not worth the hassle.  And now with kids, I value my life slightly more(only slightly).

I was lucky enough to find good tenants but the everyday happenings/theft/vandalism is hard to deal with. 

Some people make a killing off it but it isn't for me.  

@Skyler Wheeler

Congrats on your first deal! Always exciting taking the plunge for the first time.  How is the cashflow on the property?

Good idea taking a heloc.  Technically since it is for an investment, it is tax deductible.  

Basically it all comes down to intent.  If you intend to live in it but it needs 60 days+ to rehab, I doubt anyone is going to go after you for that.  If you rent it out right away or flip it right away, there's always a chance there might be a penalty. 

If it is truly uninhabitable, owner occupants won't be able to buy it typically and you will have to wait the 30 days until the property opens up to all buyers.   

@Danny Mak

I do most of my cash deal buys without an attorney but the most important aspect is just responsiveness.  They will help negotiations on your behalf but as long as you get someone responsive, you should be fine.  If you have an extremely complicated purchase, perhaps it is a bit more important but if it is a typical buy/sell, I wouldn't sweat it too much.  Good luck!