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Updated over 5 years ago on . Most recent reply
![Justen Johnson's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1325399/1621511342-avatar-justenj1.jpg?twic=v1/output=image/cover=128x128&v=2)
Follow my CLT Flip!
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
Most Popular Reply
![Zachary Betters's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/380425/1621447895-avatar-zachbhcarolinas.jpg?twic=v1/output=image/crop=3385x3385@0x10/cover=128x128&v=2)
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