Posted by Judy Miller - American Note on March 13, 2000 at 13:05:29:
Yes, Harold. If you can demonstrate your level of experience or preparedness, we could be interested in working with you on these. We would look at these deal by deal. Please feel free to contact me directly at my e-mail address.
Judy Miller - President
would like to share in flip profits for advice! - Posted by Tim
Posted by Tim on March 10, 2000 at 11:13:14:
Hello all! My name is Tim & I ahve been trying to learnb how to flip houses for the past several months. I finally feel that I may have come across my very first prospect. If anyone out there could assist me with giving me some ideas as to what I can offer, I’d be more than willing to share in the profits of the flip. There is a 3bdrm, 1bth, 1160 sq. ft. house in which just went into foreclosure auction last tuesday. The house was then bought back by the bank, and I was told that if I wanted to make an offer to do so! Prior to the auction I was told that the family owed $35,899, and $44, 367 after legal fees, interest, etc. I pulled some comps based on similar attributes, within 20% sq. ft., sold within 1 year, and on the same block within .5 mile. I found 3…1 sold for 61k, 2 sold for 67k, & 3 sold for 76k. The forclosed house also needs a good amount of work done to it…new kitchen tile, entire interior of house needs painted, 8 new windows, 5-7 new doors, landscape in back yard, back gutter needs fixed, screen on porch needs fixed, water seeped into carpet in basement, prob. pipe work under kitchen sink, new kitchen cabinets, prob. electric work…several light switches & overheads have been completely torn away form wiring on wall/ceiling. Based on all of this information if anyone out there could give me there opinion as to what I should offer based on the intent that I want to flip this to another investor, I’d truly appreciate it, and would be more than willing to share in the profits! Thanks so much for your time & patience!
Tim
Re: would like to share in flip profits for advice! - Posted by Craig
Posted by Craig on March 11, 2000 at 15:53:27:
Tim:
Maybe you have already found the help you were looking for. If not, you might want to email me. There is a program with private money available nationwide and you can do residential flips, etc, using none of your own money or credit.
Re: would like to share in flip profits for advice! - Posted by daveh
Posted by daveh on March 11, 2000 at 08:33:28:
Let me tell you about a joint venture that I just completed. It may give you some ideas.
I’m a member of the local Real Estate Investors club. There are lots of experienced investors there that are always looking for good deals. I hooked up with one of the club’s officers. Here’s what we did:
I bought the property wholesale ($35,000 on my credit card).
I paid all monthly expenses, water, gas, electric, etc.
I put up $5000 of initial materials costs (new cabinets, fixtures, etc.)
He’s a licensed builder with a full time crew in place. He handled the rehab labor costs, additional materials costs, workers comp, hazard insurance, etc. This worked out to about $20K out of his pocket.
He’s also a broker so he listed the property and got a commision on the sale.
We were both reimbursed for our out-of-pocket costs from the sale proceeds and then split the net profits down the middle.
Bottom line is it was a good deal for both of us. I found a deal he needed, I got experienced project management I needed, we both got financinal risk sharing.
Join a club and make some contacts. That’s what clubs are for.
P.S. We had both examined the property and had a written Joint Venture Agreement in place before I ever bought the place. If you want a copy of the agreement email me.
Best regards.
Re: would like to share in flip profits for advice! - Posted by Bud Branstetter
Posted by Bud Branstetter on March 10, 2000 at 22:03:07:
Tim,
I am going to approach an answer differently.
Sales price=67K
minus carpet= 1.5
minus paint= 1.8
minus windows &doors 1.2
minus kitchen=1.5
minus plumbing and elect=.5
minus financing=3.0
minus holding costs=1.2
minus misc= 1.0
minus contingency 1.0
minus profit=14.0
I would start at 36 and pay no more than 39K
The 4 F’s: Find it, ???, Fix it, Flip it, & Forget it… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 10, 2000 at 18:40:12:
Tim:
It sounds like you have the 4 F’s equation figure out except for the missing link. That is FINANCE it.
You have found a potential deal, you know it needs Fix up work,and you intend on Flipping it. Now how to best finance it?
You could approach a hard money lender that would be willing to put up the funds necessary for you to acquire title to the home and perhaps even advance you some rehab funds as well. They will want to be into the property at a conservative threshold so you’ll need to negotiate a STRONG low CASH sales price with the REO lender.
That being done, and after you get the home fixed up, you can consider selling it to prospective buyers with traditional financing obtained by them or utilizing SELLER FINANCING to move the property FAST.
You then sell the paper and pay off the hard money lender and then FORGET this project ready to move on to the next one.
To your sucess!!
Warmly,
Michael Morrongiello
Opportunity is Knocking on your flip! - Posted by Judy Miller - American Note
Posted by Judy Miller - American Note on March 10, 2000 at 12:00:50:
Tim, there are several initial factors that can determine whether or not you can obtain the money to buy the house and perform the fix-up in order to resell it, because if the answers are good ones, American Note may be able to assist you as we’ve done with other private investors and “rehabbers” in the past under a special program that only I work on in the office.
If the house is in a good area, not high crime, not inner city, etc., we are heading in the right direction for our consideration to joint venture this with you.
If you can estimate with a lot of certainty what the hard costs are for the fix-up, and if those costs are reasonable, we are still in the game.
If you have any experience rehabbing a house, decent credit of your own, perhaps some cash to bring to the table, this would make your case stronger.
If the bank is negotiable on the price since the house is in disrepair and you will be offering to take it “as is”.
Any other information that would make a strong case for us to consider making you a loan or joint venturing with you will be considered.
Given the combination and realities in your answers on the circumstances for each of the above issues, as long as there appears to be a managable risk, and a good enough upside, and you personally know how to manage the project in a quick and timely manner, and then market the property for quick resale, we may be interested in working with you.
We’ve done this in the past with varying degrees of success. Sometimes the private investor we’ve worked with did not know how to get the work done quickly and for the best price. Sometimes the private investor could not turn the property quickly enough, even though we were ready, willing and able to offer owner financing to create a swift and greater marketability. The location and movement in population in an area, whether up or shrinking, may make a difference as well.
If you would like to discuss this, please e-mail me in response to the items listed, and I will surely consider working with you. We don’t accept all inquiries on these joint ventures or loans, however, I personally sift through them and we are comfortable being active investors with good, hard-working, intelligent people, one of which I am hopeful you are.
Best Wishes, Judy Miller, President
American Note
Re: would like to share in flip profits for advice! - Posted by MilNC
Posted by MilNC on March 11, 2000 at 11:34:37:
Dave, I’d like a copy of that agreement also if you
wouldn’t mind. I have less to put up, and unlike Tim
don’t want much rehab involvement(so a contractor/partner wold be better for me, too.
Also, a question–there are three NREIA clubs in
NC the closest to me is about 70 miles. I plan to join anyway,
just wonder if this distance is workable for a joint
venture with someone who may themselves more likely be
20 -30 miles from my location. Or look at an area closer to the target JV person? (50 menbers listed on
their website, one from my telephone exchange area)
The more I know about the possibilities, the more
likely I am to seek help.
Thank you,
Ann
Re: Opportunity is Knocking on your flip! - Posted by Harold Coren
Posted by Harold Coren on March 10, 2000 at 21:43:30:
I am interested in pre forclosure work out programs at the present time I am working with a National Lender as an account exe. I went into the mortgage business to learn the ropes pertaining to forclosure. I would like to know if you would be interested in a joint venture focused on pre forclosure workout programs. I do not have the financial ability at the present time, however I have the information on property’s that are facing pre forclosure process and all they need is the catch up the outstanding payments and create a land trust on title and lease purchase back to the borrower. Please contact me if you have interest.
Thanking you, Harold Coren