All Forum Posts by: Jim Keller

This is a big topic at my company.... spent many hours on the set up and ongoing maintenance.  In the end what success we have found is through hardwork and instinct.   The verdure is still out on Podeo.

Podeo is something we use daily and do spend alot of time on, just seems to be a little to much for me.  

We have hours and hours in setup and added and adding data everyday and without question a wholesaler calls me and I buy a home I never knew was for sale.

I love the data collection, the interface with zapiar,and mail chimp, just a ton of work and I'm still waiting for the silver cloud to drop some gold bars on my head.  Maybe I just love the Kaos and drama, new trix and old dogs don't mix

Jim

I use a loan document company to adhere to the Trid regulations.  Call me, I'm always looking for a investor to fund a first or second mortgage.

Jim

I like 50/50 on such agreements when your first starting out.  I have some fractional deals I have that worked just fine, there just more complicated.  If your able to manage the property at all cost, meaning if a tenant damages the home and you can handle fixing and processing the billing yourself, you are ready to put a fractional deal together. 

If on the other hand your doing this deal on a shoestring and the stability of the investment would be damaged by a financial hardship and you can't weather that hardship, a 50/50 split is very generous from a cash rich investor.  

I seek private money investment on most of the deals I do.  The cash investor in all cases is looking for a great return on their money.  You/me make our money by finding, negotiating, financing, fixing, managing, and reselling at a later date. give your money partner what they want "great returns" and just find more deals, early on I was worried about them "my cash investors".  Worry more about finding great deals and the investors will worry about you choosing them to work with.  

Jim

I have one we will be rehabilitating, in the upcoming month, my contact info is listed.

Jim

@Aaron mazarillo 

Like a fart in the bathtub...... reality bites, funny thing is I just accepted an offer on one of my deals and reading your great advice was good to put my mind right.  

Reality can be inconvenient, the "rules" make this business so much more predictable.  I'm a believer, seen many crash and burn with way more dough in there pockets.

Jim

Hi ladies,

I buy homes all over Riverside Co. and can help you locate this and other potential sellers.  I will help you at any level you need, I subscribe to the saying "if you help other get what they want, you get what you want."

My contact info is listed here.....

Jim

if you spend 12% more than you should you pre spend any "error" allowance.  Sorry for my grammar, it's why I became an investor. Lol

@Aaron Norris, @David 

David

I know first hand the success of Aaron Norris and The Norris Group, his father showed me how to use this formula. By sticking to the "rule" you don't get in to trouble, you make money on each flip. Every market has its niches but it has always done me well to stick to my guns 70% of ARV minus fix up equals buy price.

Time is money, so if the project doesn't fit the "rule" why waste time pushing a 82% of ARV deal through your system. I don't need the practice, heart ache, or drama. Any of you that have fallen a little short on your expected cash on cash return consider this. 82% minus 70% equals 12% on $400,000 that's $48,000 on $300,000 its $36,000 and on $200,000 its $24,000 some of us would call that a lot short!

Most of the wholesaler types that come to me with deals have this 8 to 15 % component missing from their deal.  This 12% eliminates any errors and locks you in to being perfect.  All of you reading this should be laughing at "BEING PERFECT" on a flip.

Good luck

Jim

@David Loweundefined

It was a 4/2 and we added 200 sq ft then opened 2 walls and moved access to master bedroom and laundry around.  Our standard rehab is kitchen, bathroom,  heat and air, flooring, doors, wall texture, lighting, drywall grage and epoxy floor, landscape front and back, concrete driveway.

I'm proud of my guys start to finish 59 days.  I have a slick marketing website I will forward to you, the truth is we sold it before the site was up.  The market is white hot, just one more reason to spend your time looking for the right deal.

Jim

I love the term back to basics, this is a real basic.  A company can cut corners and kick and scratch for 5% Cash on cash BUT WHY!!  We do this for income not capital preservation.  Here is a deal we are doing right now.

We are closing a flipped property in Riverside, Ca,  The rehab took 59 days and 5 days to find a full price buyer.  This deal looks like this.

Purchase $176,000 48.8 % of ARV

Rehab. $ 43,000 12% of ARV

Commission, 2 side of closing, utilities, $ 28,575 7.9% of ARV

Finance. $ 14,876 4.4 % of ARV

totals. $ 262,441 72.9 % of ARV

Contract sale price $360,000

Take a look at 4105 Seymour st Riverside, Ca. 92505  If there is any interest I will post our marketing package.

I added all this to confirm that you should stick to your guns, stay with the basics, if you need "help" loosing money or like to bring drama and heart ache to your business and home buy flips in the 80% plus range you will most likely get more than you bargained for.

Good luck 

Jim keller