All Forum Posts by: Anssi Viljanen

so what i gather is that you guys can get another 10 if you put them under your name. Is that right?

Hello BP community,

What kind of cash-on-cash return do you expect on a flip in LA? I'm following Brandon's advice to analyze 3 deals a day but I find myself not being very clear on what kind of profit I should expect. I'm structuring my deal so that the investor who brings in the GAP fund will receive 40% of the profit. I was hoping to give them something like 20% cash on cash for a 6 month flip so 40% annualized. Two questions:

1) Is that reasonable for them?

2) Is that reasonable for me? Can you find deals like that in Los Angeles?

Looking forward to hearing your answers,

Anssi Viljanen

I'm curious too, but I didn't quite understand so let me clarify.

@Gloria Mirza, you meant that you are not on the title of the 10 properties your husband owns, correct?

@Wayne Brooks was your response to the scenario that Gloria is on the the title of those 10 properties too - or to the scenario that she isn't?

Hello, I live Alhambra, CA. Im trying to determine whether it is a good farm area for flipping. J Scott says in his book that one factor is what is price ratio between what distressed properties sell for vs. what retail properties sell for. How do I figure this out? Anssi

Wow man! This made my morning! Im so glad to hear you took massive action like that. Your net worth starts soaring big time now. Any work you can do to lower the expenses and force appreciation?

Thanks for your response again @Rhiannon Then.

You mentioned that you dont quite know what the overall plan for the property should be. Here's my two cents. If you can get to 60-70% occupancy with the first unit then clear out the second one.If you are comfortable doing airbnb there is probably going to be a lot more money that can be made that way. The question just is, will it get off the ground? I have great faith that it will and even if it doesnt the risk isnt huge. If the airbnb doesnt get off the ground just go to 1 year leases.

As to the staying tenant - do you feel like you need to communicate something to them? You are in no way obligated to do so. If you do want to though, im here to help.

As to furnishing. I think speed is the key even if you have to pay a little bit more. In my market there is 50-150% more money in STR than there is in LTR. So even if you need to pay tad bit more its worth it to get it going. Also since you are in the process of relocating you can buy yourself lots of valuable brain space by not thrifting too much. Have fun at IKEA! :)

Do you buy deals off MLS in Los Angeles? Im getting the sense that lots of rehabbing in LA is value-add (master suites etc.). That leads me to think that LA might not be a bad city for finding deals on the MLS. However, it is a sellers market so the competition for any given house might be quite extensive. I dont't know. What is your opinion? Is MLS a viable place to source deals in LA?

Hello Community, I am working with a passive equity partner who is interested in making money off my interest in flipping houses. I am still new and in need of someone who would ride shotgun with me for my first deal. Here is how I think about structuring the partnership and I would like to hear your opinions: My equity partner will receive 40% of the profits for coming up with the 20-25% required for skin-in-the-game with hard money lenders. (I came across 8%, 2 points, 80% LTV loan here in LA) I want to find an experienced flipper to ride shotgun with me to make sure im not doing something stupid. They wouldnt need to bringing in any money, just their expertise. They would receive 40% of the profits. And finally myself. I would keep 20% of the profits. Does that seem like an equitable way of sharing profits? I know my equity partner could get more somewhere else but I am family and taking a cut in profits in the beginning in order to get me up and running is an investment that in the long-term will net them a reliable, knowledgeable, lucrative partner. What are your thoughts?

@Rhiannon Then happy to help. I would love to act as a sounding board if that is helpful. Im a linguist by training so maybe we can work out how to word things best if that is something that is helpful. Feel free to PM.

Nick G. Thanks for the response. 405 is actually the western boundary of what i consider my area. If you have contacts that specialize on investing on this side of the 405 I would love to connect with them.