All Forum Posts by: Scott D Fitts

Congratulations Daniel... Hoping to be there in a year!!!

Andrew,

Did the insurance company pay off  the damage to the family member? Or, has the insurance claim not been made as yet on the property?  It will make a big difference in the answer. I know that many adjusters today work on settlement based on full gut and replacement of the involved area, not only the burn but the collateral damage caused by the smoke and the water. 

Hi Rey,

I agree with J. Scott, it is all about the math. The intent of the 70% rule is to provide a cushion in the system and increase the likelihood of some profit, regardless of what happens in the market. Remember the ARV and the cost of repairs is theory, based on the recent market and what historically has occurred with similar properties. If the market drops significantly in the six month hold of a flip, it is unlikely that you will lose with a 30% cushion, but if you had a 10% cushion you could quickly go in the red. The other factor in this is the cost of repairs as how exact these have been estimated. If anything, you want to estimate on the higher side for the repairs.

Lastly, I am finding that it is difficult to remove emotions from the process. I constantly struggle with separating what I believe I could make on a property and the reality of the numbers.  That is particularly difficult in finding comps for a deal that fit my emotional pricing, versus the best comps which should be used for the deal. 

So, I stick by the math...

Thank you Ed. The Bangor area seems to be doing pretty well too.  Portland is probably the hottest market in this area right now, but pickin's are slim and move quick when they come up.  I have a few prospects out, but many of the properties have narrow margins.  I think this is going to be a great summer though.  Thanks again.

Thanks Troy!  The "cruise control" feature is just a matter of establishing a system and training others to follow it, but of course there are always hurdles that get in the way. Don't really want to "retire" anyway. 

Hi Everyone, I am from Southern Maine and started a LLC this year, with hopes to have the business on cruise control by the time I retire from my career in Criminal Justice (Welfare Fraud) after 43 years. I have been emerged in classes for home inspection, real estate licensing and real estate investing for the last few months on top of my regular JOB where I have to commute 150 miles daily. (If only they had these courses as books on tape) My wife, Diana, and I have started to build our team of contractors, private money investors, realtors, buyers and sellers and are really looking forward to locking up our first flip within another month. I would be happy to talk with anyone interested in sharing information and experience, or you just want to talk.