All Forum Posts by: Ty Burns

Just wanted to share the two flips that we have underway this year. My goal is to knock down 8 of them by the end of 2013. So far, I am on track. I have one short sale that will be ready to close in a few months and another one hopefully going under contract in a couple of days(fingers crossed).

Flip #1- Purchase price: $193,000
ARV: $279,999
Rehab Costs: $32,000
Hard Money: $12,000

I got this deal from another investor who did not have the funds to close on the deal. He originally had a partner that he was going to do the project with, but that fell through for some reason and did not have the funds to close. He posted an ad on a local forum for investment properties. We contacted him and looked at the property the next day(Saturday) and closed on it the following Monday(100% financing for purchase price). The rehab took about 8 weeks to complete(we ran into a few snags with our contractor). It should have taken about 6 weeks. We ended up listing the property $10,000 over our initial ARV due to a hot market and rising prices. Still waiting for an offer.

Flip #2- Purchase price: $330,000
ARV: $520,000
Rehab Costs: $78,000
Hard Money: $30,000

This flip is currently under way and is scheduled to be finished in about a week. We picked this one up off the MLS. We ended up getting 100% financing for the purchase price on this deal as well and came out of pocket for the rehab costs. Due to limited inventory and the location of the house, we are going to list it at $525,000. Other comps in the area are moving in about 14 days.

Joe Liu- Welcome. I lived in the Portland area for a couple of years. How is the market out there? I am out in Salt Lake city and the inventory is really tight right now.

Andy is right. Best way would be to put the property in a land trust.

My brother is a realtor, so that makes things much easier for us. We can write up our own offers and run our own comps and all that jazz. I recommend you get in touch with an investor friendly realtor that will help you accomplish all this.

Tara L.- I mainly focus on price per square foot for my particular "farm" area. This way, I can look at the square footage of the house and the price per square foot and quickly determine if it is a property worth looking into. If it is, I will run comps on the house to determine the ARV. If it looks like it could be a good deal, I will then arrange to check the property out to determine my rehab costs. If everything pencils out, I will write the offer up and see what happens. The only downfall about SS is that some can take up to 6 months to come together. I am always looking to flip pretty much every property I look into. I always explore all my options on every deal though.

Most HML in my area are familiar with real estate investing and know that their investment is secured by the property, so they are not very worried about their money being "safe." I mainly deal with Private money lenders that I met at my local REIA, who are also familiar with investing. This makes it easy for me to get a loan on a deal. I usually ask for them to loan the full purchase price and then I cover the rehab expenses.

I think SS are a great way to find deep discounts on homes. I have locked up a few short sales already this year at a nice discount. Some as low as 65% of the ARV. Why dont you get in touch with a realtor who specializes in Short sales and have them handle the whole process? This way, they get the commission on the sale and you get first dibs at the property. I dont see a reason to spend $8k on a "short sale course." You could market for short sales by door knocking NOD's(notice of default) and also on the MLS. I do both methods.

You can use whatever contract you would like if it is a private sale. I know guys in my area who have put houses under contract with a hand written contract on a yellow legal pad.

@Gary Parker We have the info recorded and will be following up with the most recent showings this week. We will try and do some digging to see what their clients thought. Thanks for the advice!

I just finished a flip in the sugarhouse area right off of 3300 S and 1700 E(Imperial Street) which is a great area and I am surprised it has not sold yet. It has been on the market for a little over two weeks now. Most houses in that area are going under contract in about a week. I have had a lot of activity, but no offers yet. I have it priced $5k under market value in hopes of a quick sale.