Follow my CLT Flip!

[Justen Johnson]

Hi All. 

Being new to bigger pockets I thought it would be a good idea to start this thread and update it through the different phases of my fix and flip (Charlotte). With all the experience that BP has I think I could greatly benefit from the cumulative 2 cents of the platform. With that being said, I am interested in acquiring as much feedback and knowledge I can along the way. Hopefully this will also help with anyone newly getting into real estate investing as I am. Just got a property under contract here in Charlotte, NC (from my wholesaler). I put my earnest money down (5,000) and I am set to close on 10/9/19, so I am currently in the acquiring funding phase. The contract is non-assignable and my intention is to fix and flip. I have done a fair bit of research already and have conglomerated a spreadsheet with a list of around 15 lenders comparing interest rates, %ARV funded, points, minimum credit score etc. So far I have seen that the financing options are all very similar, especially for a new investor and just wondering if you all have run into this as well? What are my potential pitfalls along the way?

Need to know's: 

Purchase Price: 111,100

Rehab estimate: 15,000 (This is my estimate, I have a GC that's going to give a bid on Thursday)

ARV: 160,000 (Pulled from comps in the area through Real Estate agent, also Zestimate)

Intent to Close under LLC

[Zachary Betters]

so yes, a  lot of things here. We have done seller positions, but only  in  extreme situations and must take serious precautions to protect your interest... like hold back of money until the person moves out. just think  if they  say screw you, im staying in the house... kick me out. Makes for  a bad day, bad month, and bad project.

Longer hold time always = more money cost for you

Regarding inspections, I have bought many houses without, but always got in the beginning, and actually am going back to getting them now.... you  will want  to   know what comes up  ahead of time. especially given such  little margin here.

Imagine  im  a GC, I give you  a quote for 25,000. Then 1 week in I find rotten floors, joist, band sill, broken window seals, and an issue with the electric. 

Now I can fix it all for you, but its all additional cost...  can you  cover it? does this make the project go from successful to a loss?

Structural inspection at a minimum, but getting a full inspection is not a bad idea. if you are going to flip it, someone is surely  going to get that inspection before they  buy it from you, and guess what, they're gonna want you  to fix whatever comes up. Plenty  of inspectors available for 300-600 

Just re read your question, and  noted that it  was the WHOLESALER that recommended to skip on the inspection... SMH. I wholesale properties, so I  am not talking crap, but many wholesalers have never flipped a property  and don't know the first thing about rehab. second, the WS knows his deal is  locked up, and  an inspection doesn't help him at all, only risks losing the deal for  him. 
third, we've done rehabs with GCs and  have had things missed the whole way through a deal, including city inspections, only to  show up on a  final inspection from an end buyer requesting they  be fixed. 


hope this  helps