All Forum Posts by: Aaron Signer

In this market, paying hard money rates to acquire a property and then fix it up adds up quickly. The opportunity here is that the owner is willing to carry the property while you cover the rehab costs! Then you split the profits!

SFR in Georgetown. 3 beds, 2 baths, 1750 sq ft.
New roof, and newer HVAC.
Needs an interior cosmetic update: kitchen, bathrooms, floors and popcorn removal.
Windows are aluminum single panes.
Overall talking probably $50-70K depending on finish.

ARV should be $430K.

AKA, agree on the price for the house with the owner, say $275K, front the rehab costs, and then when the house sells, and then split the rest with the owner.

Example: $430K - 7% realtor fee ($30K) - $275K - $70K (rehab cost) - finder's fee (4% of agreed sale price with buyer = $275K in this example: $11K) = $44K

$44K split with the owner = $22K each

That's a 27.5% ROI AFTER your cash is back out!

If you know of anyone who would be interested, please let me know.

Looking for a contractor to take 2 active projects over. They are both in Indianapolis and in the final stretch. Any and all quality recommendations are greatly appreciated! Thanks!

In need of a good contractor recommendation. Have 3 properties under renovation. One contractor was hospitalized with Covid and the other was let go due to failing to pull permits and shoddy work. 

Would appreciate any good contractor recommendations to help me get these projects finished. Thank you!

Under either plan, do they do rent increases over the 3 years?

Love seeing success stories like this!

What class neighborhood is it in?

I have a guy who specializes in C and D's

Based on the numbers I am running off the above, you are looking at less than a $10K profit on the flip (57% CoC ROI vs 7% CoC ROI holding post refi (interest rate and how much you are borrowing are big variables).

I think you are making the right call and I wouldn't touch the sewer but budget "walk away money" to give in credits at time of sale on the flip.

I do buy and hold and have yet to not do some form of rehab on my purchased homes.

Leverage a realtor ahead of time with the scope of work from the contractor to confirm what they would list it at and where they expect it to close.

I would 100% restructure that payment cycle with the contractor. Once he only needs 10% left from you, he could very easily bounce to a different job/prioritize you lower. I don't give the majority of funds until work is completed because I have been burned like that before. I will give a deposit (30%) and then can and will if asked, float some funds (less than 20%) during the project to cover manpower but I will not hand over the final 50% check until work if finalized. Talking post inspector walk through and any issues raised are addressed. It is a nightmare trying to get someone back on a job site after they have been paid.

Have you seen this contractor's work and talked to his referrals? Is he licensed and bonded?

Stock Yard is who I have used for my last 3 properties. Eric Reynolds over there takes care of me. Message me if you'd like his contact info.