Updated about 8 years ago on . Most recent reply
What would YOU do? Myself and a partner with $50,000 each...
Hi everyone,
My goal is to get an idea of what some of you more seasoned investors would do if you were in my shoes. I currently have around 50k cash to invest in a project and I am located in Virginia Beach, VA. I also have a partner in California who has 50k to invest. Our plan is to seek properties in the 70k range that need 30k or less in rehab. The areas I am looking right now have comps selling for 140k-160k. We are both newbies and would like our first deal to be a flip requiring mainly cosmetic repairs.
We want to do flips to build more capital so we can get into some rentals to hold, and eventually new construction. I don't have any interest in wholesaling, but the properties I'm looking at are being sold by a wholesaler.
If you guys were in my shoes, would this be the approach you would take? How would you go about tackling it? We don't have a team built yet. Do I need a to pay a contractor each time to do a walk-thru on a potential property with me to get a quote? How did you you build your team?
It's great to be here with the wheels turning and the ability to take action! Thank you all!
Most Popular Reply
Hey Byron, these metrics are about the same as my bread and butter properties. Since you guys don't have too much experience, I would spend more time on finding the right contractors.
The math is pretty simple but your challenge will be dealing with contractors and ensuring they do quality work at a competitive price. I'm sure you can find contractors to bid on your project without having to pay them for a quote.
I would spend time interviewing a few and listening very intently when doing the walk through. My guess is that each contractor will address some different items. You should put together a scope of work and make sure each contractor are bidding the same items as well.
@jscott has a great blog at 123flip.com which will answer virtually all of your questions on how to correctly run a flip. Of course you can find everything you need on BP as well.
Hopefully this helps and best of luck. Good to hear you're jumping right in and taking action!