Questions for flipping in San Jose

[John Choi]

I am a construction manager and also a newbie investor looking for flipping opportunities in the south bay or east bay area and the investors who also have interest in flipping as well.

Since I have a full-time job and cannot directly hire and manage subs on a daily basis, I want my business running on autopilot. I believe I need strong tools to negotiate with the GC whom I will hire and double check his performance on a weekly basis (ex: spliting payment as he hits each milestone or pass each inspection from COSJ building department), so I started building the platform including the comps, ROM construction cost estimate and schedule templates, bid and contract packages, etc.  I am still not familiar about doing comps, lending and selling process. Hope you don't mind answering my following questions.

1.   In San Jose market, what kind of house style and design would contribute to selling houses quickly? Are there any special amenities attract the buyers' attractions?  

2.  When you drive other houses in your comps, what other creteria you are also using to do visual inspection except for house condition, curb view, street and proximity?

3. I think someone said in BP Podcast that some people do file LLC per each deal. What are the benefits of filing LLC per each deal if you are working with other investors?

[Assaf Furman]

@John Choi The house style depends on the area it's located at. In other words, what will retail buyers look for when searching for houses in that particular neighborhood that is of high value to them and vice versa; You don't want to remodel a house in East San Jose like you would in West San Jose - you simply won't get your return. 

There are two simple ways to know that:

1. Going to open houses and scour listings to see what houses are selling for in terms of $/sqft as a function of their specifications and style.

2. Have the advice of a top tier realtor who specializes in that area you're buying in and knows first hand what value each and every item can get you per the area. Depending on your relationship, they can also provide you with CMA (comps) and understanding lending and selling process.