All Forum Posts by: Aaron Scott

I agree, I don't want to get too far away from my split question but how do you convince someone that hasn't done the research and doesn't know what all goes into doing it the right way? He's all about that he's the only one that has any risk, and although uneducated on best practice, feels they could do it without my help. That said it should be a quick deal and not a ton of risk because we got at a pretty good price 70% of current appraised value and likely about 60-65 percent of ARV.

Alright I have a friend who is easily able to find get a mortgage on a property we are wanting to flip. I only have around 10k to put into the deal so I was going to let him get the mortgage (down payment and repairs).  I was orginally going to do all the work getting contractors, getting them to sign contracts, forming the work schedule, and SOWs and doing the daily management (basically just going by once a day to check progress). I also pushed him to keep contacting the realtor who had the deal, went to inspect the house when the deal got down to where I felt it was at a good price, and pushed him to go for the deal (I don't think he ever would have called the realtor if I hadn't pushed him to do so.) Turns out I'm having to do a lot of the research to help him determine what loans he can get. All of this I fear he places no value to as he's never done it, that said it will be both of our first flips. He was solely going to fund. I need some options for what would be the best way to split. I originally said we would do 50/50 but he does not see that as fair, as he just sees me as a person that calls a contractor in to do the work and that's all their is to it. 

Is there some way that we can do a sliding scale where it starts at the point we think is a reasonable finish time (maybe 3 months) around 50/50 split and then the longer it takes it goes more toward his favor (maybe moves to 45/65 at six months)?  I first toyed with giving him a 10%apr paid at the end of the sale, and I would pay the mortgage each month as well. It accomplished what I was aiming to do with the sliding scale but it goes badly out of my favor way too fast (in an unrealistically fast timeframe, i.e. at 3 months its already at and equivalent 30/70 split when its likely that 3 months is a realistic timeframe to rehab and get it sold.) I appreciate everyone's response and hope someone has had a similar experience I can build off of.

Thanks everyone.

EDIT: the sign mentions to call the property company if interested in buying. Just thought that was strange with a house that was going to foreclosure.

 I haven't just found the deal this morning. I figure it was too late, but wanted to know if I was in the position in the future if it would be possible. You are correct, I am not in contact with them currently. It wasn't intended to be a wholesale deal. It would be a property I planned to rehab myself. You are correct though, without knowing what is still on the current mortgage and how far behind they are, its prob not a good idea to go to continue much further. There is no one in the house, but there is a sign posted that it is under management by a property company. Is that normal for a home going into foreclosure?

I've found a potential deal that I may be able to buy before it goes to the courthouse steps for sale. It is scheduled to go on August 8. Is there even enough time to get a deal done with the current resident, before this happens? With a cash offer maybe?

Here's some info: Original mortgage was approx $145,000 in 2006. 2400Sqft split level built in mid 60's . Can you guys help we come to an approximate amount of potential equity in the house assuming interest rates and types of mortgage available at the time of 2006 and assuming the mortgage was paid current until 2013? Trying to see what the bank might try to get for the property if it goes to Auction and an idea of what I might have to offer the current resident.

Doing a quick look over the property, and barring anything major unforseen, I'm assuming I can potentially sell for about 160k with approx 30-40k of rehab. Does this even sound reasonable?

Hello, this is my first real post. Been following the site for probably a year now but had some down time with a little one's arrival. I still don't have the most time, but trying to start getting things together. I was thinking about the whole getting a team together before you start with your first deal and got to thinking about the agent and how you want someone well versed in investment real estate. I've heard on the podcast here and there and seen people mention that a new agent can be a good thing to have as you can get them to learn what kind of deals to look for (read get them to realize you are looking for low priced deals with smaller commissions, but will be worth it to them in the long run because they will get more deals from you). So the question is, say you are able to get a hold of a new agent, how do you get them going in the right direction and learned to the ways of investment? I would think if I was a veteran investor I could probably answer this question myself, but since I'm just starting out, what would be the best course of going about it? Any tips, advice, or opinions welcomed.

Thanks for the response.. I'll def have to get to the next one. For some reason I thought there was going to be a void for a few months until July, not sure where I got that from.

So how did the meeting go guys? Was it beneficial, I've been planning on going to the next one but I didn't realize there was one in the Huntsville area back in April. Guess I may have been looking in the wrong places.