All Forum Posts by: Aaron Schrader

For your question - As for your second point, these are off market deals, I have heard of others making deals themselves without any agents, how do they do that?

You should be able to look for the purchase agreements your local agents are using online, talk to the association of realtors for your area or even ask an agent that you have some relationship with.  Purchase agreements aren't inherently difficult to understand, but it would be good to have someone familiar walk through the different points on a PA with you.  A slightly more expensive route is to contact a real estate attorney and see what documents they have and use.  Just remember a PA is a contract to buy real estate, so don't enter into a contract without understanding it and being willing to execute it.    

I believe I have value to bring into a partnership, I am very determined and motivated, and very ambitious, but I guess they wouldn't know unless I show them, which networking and working with someone will definitely help. 

I'm sure you do bring value into a partnership!  But how will someone who doesn't know you learn this about you, besides you telling them?  You already shared your answer, and you're right, you're going to need to demonstrate your determination, motivation and ambition.  Consistent effort over time!  (I have this written on my whiteboard wall).  I think the big thing in your spot is to have your targets and goals, constrain them with time so that you have some pressure to hit them, but also be okay with things proceeding at a measured pace.  As you achieve some of these goals like your networking, connections, etc, which take time, I believe you'll see the other things like finding properties and flipping homes arrive quicker.  Right now continue to learn and network, and don't burn bridges!  

I recently heard a friend who builds spec homes say "if the house is empty, that means work is not being done, so never have the house empty".  They use different loans similar to hard money that have holding costs, so that advice is very applicable to your situation!  Don't let the house be empty, which means your scheduling of contractors and deliveries should be tight.

I wanted to see if I can add any value to your questions posed and the answers, so here's my thoughts: 1) I was told to get a real estate agent to help, I have been trying to get an agent to help me, but most of them never get back to me and the ones that do, and I tell them what I am interested in doing, they never follow up with me and it is hard to keep chasing them, any advice as to what I should do about this? as an agent, I'd want to know that you have actual money backing you up, so when we go and look at properties we aren't just doing a housing tour.  I have no problem showing the properties if I know you have money backing the deal, but walking through properties costs money and time for the agent.  So- can you get a proof of funds letter ready to demonstrate your ability to move on a flip property?  Be very clear on your vision and direction, and maybe even have a few properties you're looking at and bring those to the table with your funds letter.  If I received a call along the lines of "Hi, I'm interested in house flipping and I need an agent to help me on the buy side and the sell side, I have funds secured and I have these properties identified as ones I'd like to look at.  I need to know that you can help me analyze an accurate ARV..." Then I know you've got some things together on your end.  As far as calls not being returned, keep calling till you get one that picks up or calls you back.  There's a lot of flaky ones so don't be discouraged, just know you are sifting.  Every single aspect of the real estate business involves persistence!  Consistent effort over time.

2) I would try to do deals myself but I don't know how to do that, I have no contracts and I have no clue how to make and write an offer to even start anything off, the only way I can think of making any offers is with an agent, but that will cost the seller an agent fee and will minimize my chances of getting any deals, what should I do about this?   If the seller has an agent already, they know they are paying the agent and it shouldn't really minimize your deal chances.  If the seller agreed to pay an agent 6%, and you come in with no agent, that seller agent is not necessarily saving the seller money by you not having an agent.  As per my answer to number one, sift, find an agent willing to buckle up with you.  If you are shopping for off market deals with no seller agent involved then yes, that could be a consideration for a seller not wanting to pay buyer agent fees.  In which case you should evaluate if your agent is spending time with you and bringing value, then you might consider paying your agent if the seller won't, and perhaps you can settle on a flat fee on the buy side and hand them the listing on the sell side.  Just trying to kick some ideas out there.  

3) Is it best to try to get a partner, someone who is already experienced? I have tried that as well but no one is really interested, how do I go about this? I wouldn't partner with someone I don't know.  So, I'd overcome this by getting to know people and them getting to know me.  What value can you bring to a business partnership?  What is your value proposition?  It is probably a wise move to go about this with a partner initially, so decide on if you are going to and then take the appropriate steps to securing it.  Remember, consistent effort over time!  

4) Even the distressed houses are only offering to be sold for a max $100,000 lower than regular asking price, which can't turn any profit, is it due to the market today? Is it even worth it to try to do flipping in todays market? As others stated it is a challenging market.  It doesn't mean it can't be done but it should show you the benefit of having an experienced person you partner with.  If you bought a flip today, and it took 6 months to finish, and the market trajectory is downward over six months, can you still profit if the house value is whatever % less in 6 months?  Maybe a consideration for you is that over the course of the next year, instead of getting a flip house, you spend time and invest in networking (invest meaning time, not necessarily money), securing an agent, contractors, and maybe even leads.  Maybe you find a lead on a flip house and you've got a network of flippers you work with and then can feed them a project (bringing value to them) and you can "partner", or shadow, the whole endeavor.  

Good luck!  Stay consistent!  

I'd want to know what specific changes the inspector is expecting to be completed, and what code he is referencing.  I have a mixed experience with inspectors- some work in reality and others less so, and I have personally experienced an inspector coming out, having an issue with something, and then having another inspector come out and he did not have issue with whatever it was.  So I guess I'd want to know specifics, and also get a "second opinion" without the other inspector knowing if that's possible.  Code should be code and it seems pretty black and white, but it's surprising how much gray area or interpretation or even personal preference is involved in an inspection. I'm interested to hear how it goes.  

One other thing since the WiFi can sometimes have a hard time getting inside the trailers from wherever it is broadcast, they have these boosters that you put inside the trailer and they're about $200, and they amplify the signal so that you can get it inside the trailer.  Just search for an RV wifi booster or amplifier, if you find you need one.

Hey @Sarah Kensinger those RV's are pretty amazing, I've always known them as a "park model RV".  As for making it manageable in the ways I think you're thinking, if the location that it is parked doesn't have wifi present, I wonder what a cellular internet plan would do to make things like smart locks and internet access work.  Just throwing some ideas out as an RV owner, I've let people use my trailer and have done a walk through with them, so I wonder if you had a video walkthrough available on how to use things and use them correctly in an RV if that would be helpful (or even used).  You could put a QR code in the RV or maybe it auto emails to them when they book, linked to the video walkthrough.  Will the black and gray tanks be hooked up to sewer or will that have to be manually emptied?

Soapstone can also be a pretty cool countertop option, just offering as a point of consideration.  I think with most stone, as others have said, I'd stay away from anything that is really distinct in its coloration or patterning.  

 South Dakota requires a 40 hour course and passing a license test at 75% or better.  

I don't know anything about Rockford, but personally speaking I'd want to stay away from a high crime area, and if you see that it also has the added effect of low appreciation, I'd look elsewhere. Again, this is just my personal thoughts. If you are investing out of state already and have no specific tie to Rockford, what other out of state areas could you invest in that have better factors (crime/appreciation)? By returns I'm guessing you are speaking about cashflow, but if you don't see the return on investment through appreciation, you could be missing out on an added benefit (value growth for resale, ability to HELOC, ability to BRRRR).

My 2 cents- I think the best advice here is to evaluate the neighborhood.  Is this the worst part of an otherwise good/decent neighborhood? Or is it on par with everything else going on in a given area?  It's a bigger skill than I have to determine the direction of a neighborhood, but maybe you can see if it is trending better or trending same or worse.  I wouldn't be interested in the negative directions.