All Forum Posts by: Alex R.

Any type of business that generates revenue can and will change your tax bracket; so that’s not even a concern here

Is this because for rental properties, banks feel with ungoing rental income you will be able to make the monthly payments but with flip there is no such guarantees hence it would be a higher risk to finance it ?

Also if you plan to buy a house in good conditions and then rent it out, then it will be a rental property and % 20 down payment will be enough?

Many houses I have looked at can generate positive cash flow if rented.

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Bill Thank you for your reply.
No one can see my profile at the moment because there is nothing there. As soon as I start and finish my first project, I will update it.

Meanwhile even if I had the knowledge and experience, I was not going to do the doors and windows myself, First I don’t have the time (I am a full time engineer working 8-5 five days a week) second that’s not my role and plan for this intended flip. That’s the duty of contractors and GMs to do that.

What can I bring to the table, is connecting the dots, making things happen and running the whole show. This includes finding the right deal whether by myself or though an agent, Financing the entire flip (partly my own money, partly friends and relatives investment) , talking to the banks, private lenders and mortgage companies, Do the necessary analysis (an area that I am pretty good at) , making an offer,
Identifying and locating the right contractors, electricians, plumbers , …. By doing lots of research, networking, talking to them in person and also talking to their previous clients for a performance review; planning and assigning the construction work, swinging by the house every day to make sure progress in being made as scheduled and basically supervising the entire project from the very first step through the end.

This way investors will not worry about any “nails popping out of sheetrock” because the nails will not be done by me as every specific task of the work will be done by a professional with experience in that field and then from a bigger view the whole project is being supervised properly.

To better summarize it, what I bring to table is: My search skills, analysis, delegating tasks, bringing in funds, supervising and management

I am lookin for people who have the money and invest here in bakersfield

Right on the money John.

But other replies have made it look a lot more complicated than this :D

Oh, my previous comment was not clear at all. I am not saying that a property sold today for the third price of what was sold 7 years ago is a great deal.

A great deal is a deal that makes you great profit “at the moment” regardless of what it was sold for in the past or what will be sold for in future.

Flip projects are independent of the house value appreciation, even though if that happens its considered a bonus.

By the way there is no specific property I have in mind yet. I am still in a learning process (I know the basics) but I am planning to do a flip this summer.

My regular work schedule is 8-5 and I want to make a better use of my hours after work; so this summer should be quite interesting for me.

By the way is there a quick test for what would be qualified as “a presumed great deal” Such as a certain percentage or criteria.

For example if you purchase a property for 70 % of its ARV, is it considered a great deal ?

I am more inclining towards %55 and that wouldn't be impossible to find in bakersfield

These are some very good points Jeff.

I noticed that you work in LA area so I am sure you are familiar with Bakersfield market as well.
I don’t think the issue of “the lack of inventory” is so bad in here. My coworkers have been purchasing 3 or 4 bedroom houses with a really great price.

A house sold in 2006 for $270,000 was listed and sold for $100,000 last month.

Sounds like a great idea on paper, but why would they want to team up with someone who has no experience?
In other words what are possible motivations for them and also how can I make it possible to get an experienced flipper work with me?

Cash only doesn’t mean that you have a suitcase full of $100 bills or all the funds available in your checking account.

I believe if you have a preapproval letter from a financial institution or a commitment letter of funds from a private letter, that will suffice too.

Going to institutional lenders such as banks and mortgage companies or private money lenders (hard money)

And what does it take to qualify for each with no previous experience

or any other option that you may recommend will be greatly appreciated