All Forum Posts by: Steve Edwards

1. Do gutted homes offer good profit potential (in general)? I know it depends on the numbers, but I'm not sure how expensive it is to rebuild an inside., so generally speaking is it worth looking into?

2. When going through rehab properties, what should I ask when considering the property? For example, I know that I should always find out: 

*if there is mold 

*how old the roof is

*if there are liens or back taxes owed

What else should I specifically look for that could trip me up if I overlook it? This will be my first flip. 

Thanks a ton!

I am interested in flipping homes, and am considering getting my rel estate license. However, a friend mentioned that the costs are quite high. She mentioned Error and Omissions fees, Broker fees and MLS listing fees. This sounds very expensive. Are all these fees necessary?

Also, if I need to be sponsored by a broker, what should I look for in a broker? Generally speaking, would a broker be willing to take me on even if I'm not selling properties?

Is MLS access beneficial for a wannabe flipper? Seems like lots of people send out letters instead.

Thanks for any guidance you can offer!

I am working towards my first flip. I have a few questions I'm hoping those who are experienced could help me with.

1.) I do not have funding. I do not yet have any investors I work with. I do not have a portfolio with which I can impress potential partners. I'm a complete novice with only the knowledge I've picked up from books and the BP site. if I find a property I want to flip, how do I get it under contract so that I can take it to an investor without having them simply take it away from me? I don't understand taking under contract because usually when you go to see a home, people want proof of funds, (or with loans, they want a credit score, and a mortgage pre-approval letter from a bank). I won't actually have the money so I'm confused about how to take something under contract without any money. Where can I learn about these specifics?

2.) I love the BP calculators. And I know the 70% ARV rule. But as a novice who can't yet estimate myself how much money it will take to rehab, how do I make this determination? Also, am i allowed to have contractors take a look at a home before I've bought it? Can investors protect themselves in agreements with contractors? (i.e. If a contractor says they will fix A, B and C within 3 months for 25k, is there any way to prevent them from saying oh, sorry, A, B and C will actually be 30k, we also need to do D and F which will be another 15k, and it'll take us 5 months?)

Thank you all for your awesome guidance!

I know that if you have a real estate license, you must disclose it to sellers. But if youre buying as part of an organization (llc or corp) do i still need to disclose that even though its the business thats buying a home not the person themselves. In other words, if Bob has a license but plans on buying as a business (Bob Inc.), since its the actual business buying, not Bob (technically), how does that affect disclosure?

Also, in practice, is it really big deal to tell people you have a license? I don't see why it would matter. A buyer is a buyer and a seller is a seller. Why would it undermine a sellers trust? Just curious about peoples experience with this. 

Thanks everyone!

I have read that in some books that many recommend getting a real estate salesperson license. Is this only because of access to MLS?

Is it difficult to switch your license to another state? Can I hold one in multiple states?

I think I remember reading something detrimental about holding a license as an investor. Can someone explain what it is?

Any help is much appreciated!

How do I choose the right construction company when rehabbing? I am new to flipping and this feels like its one of the more concerning aspects of investment. since it seems like we have less control over those costs, which allows lots of room for being taken advantage. Does anyone know where I can get good advice on this so I dont get ripped off and know what Im doing (as best a newbie can)?

Thanks!

How do I choose a good real estate investment club? It seems like there are lots in my area and I want to pick the best one. They charge fees, is this normal? What should I look for in return for  my investment?

Thanks!

Ok. Thank you all for the suggestions. By no means do i want to get rich quick. I just want to get good at this and i feel like i need to jump in. I see youngsters doing wholesaling but in my research it seems like its not adviseable to get into it without tons of contacts. I dont have anything. Can i become is reo broker myself? How do i become useful at a rei meeting? I feel like one or two flips is all i would need to have cash flow necessary to be self sustaining. Am i wrong? 

Thanks for responding, Mr. Thomas.

 I unfortunately do not have any such skills. I have nothing but drive and work ethic. Hard money has every right to have reservations. But I still think there's gotta be a way... Real estate is generally secure. Its not like asking for a business loan that could result in a failed business. Thats why I love real estate. The investment is worthwhile itself. 

 I want to get into this now. I want this to be my profession. I dont have any money, only debt, and I know conservative minds would tell me to keep working my job until I had some money saved and debt paid but that will take a long time and I really dislike it, I love real estate and I want to work hard in this instead of in a job I hate just to try to get started a few years from now. Please give me guidance on how to make my first flips with no cash. I know hard money wants skin in the game. So I was thinking maybe I could borrow from two sources? Where is the best place to find the sort of lenders I would need?

Thank you for all your help.