All Forum Posts by: Timothy Tooker

The way we came upon this house was interesting. I was talking to my contact for the auctions and he asked me how much profit I needed to make for a deal to work for our company. Since it was becoming winter and we needed to keep our workers employed, I told him that we needed a minimum of $10k profit. He told me they had a house that was sitting on their books and they were doing a Thanksgiving special (waiving their finders fee). I got the address and it turned out to be roughly 6 min drive from my house. Below are the numbers he gave me on the house.

Rambler

3 Bed, 1 Bath, 1069 Square Feet, roughly .25 acre lot, Occupied house

Purchase Price: $141,000

Renovation: $25,000

Finders Fee: $0 (waived if I took it that day)

Resell: $205-$215 (depending on finishes)

Offered to sell it for me for free

So here is the initial numbers I put together.

Purchase Price: $141,000

Renovation: $35,000 (I always add onto the number they give me, just to be safe)

Closing Cost: $15,000 (7%  3% to buyers Agent, 1% to selling Agent, 3% closing cost)

Holding Cost: $11,700 ($2,700 [points], $1,200 insurance, $7,800 for 6 months of Interest)

Potential Profit: $12,300 (plus we finance our own renovation and pay ourselves)

This is what it looked like:

Next Post I will explain and show the demo/design and how we planned to add value to increase profits

I am an active duty Soldier at Fort Lewis. I work at I CORPS. I am by no means an expert, but more than willing to share any knowledge of the local area that I have with you.

Contact me anytime

I had a client put in an all cash offer on an REO, closing in 14 days on a $50,000 house that had fire damage. Caught the listing immediately after it was posted live. When I talked to the selling agent he told me that he was in no rush to submit my clients offer. That it would get put into the pile to be faxed and they would get to it when they get to it. Needless to say, the next day, we got the amazing biggest and best email.

Hae-Yuan Chang

Be careful using price/sq ft. Base on the information you provided and guessing that both houses are evenly matched in terms of finishes, bedrooms, bathrooms, amenities, lot. You would be selling your house for $99,600 more than the comparable house. The neighborhood probably cannot handle that price.

In a lower income area, I would use the last comp of $137,000 as my high baseline. Then if I could match or come close to matching finishes and provide something that the other house did not to include the 600 sq ft. I would probably push the top comp envolope for that area and list 20-30k higher.  If the house does not fly off the market, then the market is telling you that you are too high.

You also have to remember that the house has to be able to appraise when you sell it. In lower income area's you will be facing FHA/VA loans most likely.

My company (Homes by Tooker, LLC [CC HOMEST*856NK]) is a general contractor. We have an Interior Designer that can assist you with space planning and design. I am a licensed Agent if you need assistance.

In Washington State you have to be under a broker for at least 3 years (or 2 years with higher education that counts towards certificate) before you can take your Managing Brokers test. Once you pass that, you could theoretically start your own company.  Or you could start a realty company and hire managing broker to act as your designated broker (but that involves payroll and a lot of paperwork).

There are varying degrees of commission splits amongst the brokerages. The more established companies are going to take a bigger split until you cap (You pay for the education basically, great places for new agents to cut their teeth in). There are a ton of brokerages that charge flat fee's on your closings (cheapest I have seen is $275 per closing). But, I do not know how much assistance these places have or in-house education.

If you have any more questions, my phone number is on my profile... Call anytime

They also have forms on Bigger Pockets that other investors have posted under the Tools/File Place section. Just tailor them to what you want it to say.

I use Ticor Title out of University Place.. They have discounted rates for investors on Title and Escrow.

Ask for Tia or Heather davidson

I know you said you do not need an Agent... But if you ever do, I am licensed Agent in Washington State, I am also a licensed General Contractor, we own a remodeling & design company and we also have a real estate lawyer & Interior Designer on payroll.

As far as the property, I would not spend the money to switch to sewer until it fails. Save the money. You can get the septic pumped and inspected for around $400 total.

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Not exactly sure about South Carolina, but what ever brokerage you end up signing up with, the designated broker should be able to answer that for you. In Washington state we only have to put in the listing or advertising that the owner is also a licensed real estate broker.

The only pitfall to being an Agent is that you are held to a hire standard when it comes to the law. They are less likely to believe that you did not know something. One good thing about using another agent to sell your properties (even if you are licensed) is that in a case were the buyer takes you to court, you have an additional layer of protection from the transaction depending on what the issue is.