All Forum Posts by: Taylor Shapiro

Hope everyone's doing well

I spent the better half of last week speaking with private lenders and it looks like I have 2 who are interested in loaning money. (!!!)

My plan is to begin flipping properties in my area to raise cash for rentals.

I was hoping someone could give me a brief outline of using OPM to purchase/fix rentals and then refi out into a conventional loan, thus returning the original lenders investment..

Is that basically it? What kinds of professionals outside of the forums could I ask for further details?

Thank you

Very helpful thread. Great question and answers!

@Justin S. and @Anson Young, how often do you revisit the listings you've already put offers in on? Is there a specific # of days/weeks/months you let pass before you resubmit an offer on one you've looked at already? Do you wait for the LA to get back to you if they're willing to negotiate? Or are there enough properties continuously listed each month that you don't have to go back to old listings?

Some of the areas around where I look would have me shuffling through the same 30 properties for months which makes it impossible to rifle out 3-5 offers a day.

Thanks!

@Dell Schlabach, Thanks again for sharing your story.

I'm curious, you mentioned you find a full-time rehabber 5-6 deals a year while you do multiple projects yourself. How do you find your deals? Here in CT there are still many that we're able to pick directly from the MLS. Is it the same where you are?

Brad T. like everyone has said, check out ebay.

I bought CF 101 and 202 for my computer a few years ago for around $30 if i remember correctly. Both are fun and very informative. Nothing too sophisticated but if you're anything like me when i started, they'll take some getting used to!

Good luck on your search

Thank you both for the responses.

Brandon Turner- my mentor actually mentioned how he would gladly buy a deal from me if I were to find one. Definitely a great idea. Funny you should mention the calculator as I just saw it earlier today. I hope to one day share my story on a BP podcast..

As you and Dell Schlabach mentioned, splitting the profits 50/50 would be a great approach also.

Dell- It's reassuring to read your first paragraph. I feel my start in the flipping world will be very similar. I never thought to negotiate some sort of draw every week to be able to not only survive but focus 100% of my attention on the project. Great stuff and congrats on re-starting.

Regarding your comment on having a difficult time negotiating a lower ROI after splitting profits 50/50 on the first flip, what is an ideal return for private funds? I've seen 8-10% tossed around, but then again everything is negotiable.

Thanks again fellas

Hi all

For the past few month, as some of you may know, I've been working side-by-side with an active flipper in my area. It's been a tremendously helpful experience but quite the drain on the wallet. It was a risk I decided to take, knowing that the pay would be significantly less than what I had been making at my previous job. From an educational perspective it was totally worth it.

During our time together, I experienced the purchase/rehab/and sale of our first house together as well as the purchase and rehab of 2 other properties. Call me naive, but I feel as well prepared as I can be to begin making offers on my own. To further reassure my belief, my mentor told me he thought I'd be good to "take over" (manage) a rehab after one or two more flips together.

Unfortunately, for both of us, his wife has been very ill and has caused him to spend a significant amount of his time looking after her. We agreed I should start looking elsewhere for work.

As of now, I would like to keep momentum going and aggressively get the ball rolling. I'm signing up to get my real estate license which will allow me the time to look at properties on my own. I have electric and plumbing subs lined up as well as a handful of handymen I can call. I will still have access to my mentor who I will pay a "consulting fee" to ask questions throughout my first few rehabs. I have 2 meetings set up this week to speak with private investors who are interested in what I've been doing and a third meeting in the works.

The area that I need help on is working out how I can fund these deals by using 80%-100% OPM. At this point I do not have a personal proof of funds statement that would land me a deal.

Do you have any advice or references that could explain how i can use other OPM to fund my deals all the while giving them a nice ROI?

Although I've formed a relationship with a local HML, my income from the past few months will make it difficult for them to feel comfortable loaning the principle amount or even repairs...I would think.

Thanks for the help

James Vermillion are you investing full time now? Is there a thread where you explain how you started? Thanks

Thanks fellas, i'll have to post a picture for you to judge.

Jon Holdman, it smells like old cat urine. It STINKS! My mentor knows far more than I do about these sort of things but I had asked him if he thought it was a leak in the pipes. He seemed to think they didn't run below the concrete slab.

Roy N., I'm gonna have to get back to you on the age of the property. What would the age tell me about the stains?

I'll post a picture tomorrow. The smell alone will be a huge turn off to any future buyers. I gotta figure out what's going on here.

Thanks for the input thus far, it's given me much to think about and look into...

Hey guys, I was wondering if any of you had experienced something similar to what we're experiencing over here.

We painted over a smelly basement floor with regular, white Kilz. The following day, I went over to see if the paint had killed the horrible smell in the basement and noticed in one of the corners that several (30+) small blotches of brown, SMELLY, liquid had seeped up through the concrete floor. It has gathered around the perimeter of the basement now but is much more significant in this one corner.

We realized the Kilz wasn't going to cut it so we went and bought this heavy-duty, extra thick paint (can't remember the name of the stuff) and went over the floor with it. It smells like bengay actually, which is a heck of a lot better than what it previously smelled like, but a day later the brown stains reappeared in the same places.

Does anyone know what this could be?

Great topic- as Joffrey Long hinted, i see many young professionals who are making "decent" money cruising around in expensive vehicles. Whether they can afford to buy them using all cash or only afford the payments is another topic of discussion all together.

I'm new to REI but my mentor isn't. He's been consistently investing in RE for over 2 decades. Five years into his career he went to a Ferrari dealership and wrote a $140K check for a 430 spider. He sold it 2 years later after he realized it wasn't worth dusting it off in his garage every month because it's tough to collect rent checks in a Ferrari!

He now drives a '97 Ford Explorer that he paid $1800 for. He treated himself to an $800 work truck that he's owned for the past 2 years. He's never had car payments for any of his vehicles. The miles between these two beauties are too many to even type out!

We were working on one of our houses the other week when our new demo guy came to get started. The first time we met he was driving a newer Ford Explorer. This second time he was driving a 2012 Hyundai Sonata. I joked with my mentor that we were in the wrong business- this guys car is nicer than yours! He went on to say that "some people plan for the future, others want it today...it's your choice". Although we were both laughing and I have very limited knowledge of our demo guys' financial status, it was a very eye-opening moment for me.