All Forum Posts by: Ashley Abramson

Hello Everyone,

Had a quick question! I had a property under contract to flip during the month of March, and thought it was going to work out great. 

Purchase Price: 175k

ARV 300k

Rehab 70k

Initially we had budgeted for 55k rehab - so when the bid came back at 70k, our numbers no longer worked, so we backed out during 10 day contingency period in order to get EMD back.

The question is, the property is now listed again at 140k (same as initial listing) Is it ok to make another offer but for less? Or are we allowed to since we backed out the first time? 

@Troy Fisher coming all by myself it turns out! Looking forward to meeting everyone!!! 

@Bryan Wilkerson Yes I mean profiting as in whatever you profit off of a flip, and whatever your cashflow is from rentals (at least I would assume that is profit) Again I am not an expert but this is what my accountant told me.

@James A. Flowers I think the answer to your question depends on quite a few things. 

How quickly you are looking to accumulate wealth? What is your definition of wealth? Are you looking to replace a 9-5? Do you have debt to pay off?

Flipping will get you larger sums of cash quicker, while buy/hold will get you cash flow over a longer period of time. I think you are right in assuming a little bit of both is the answer. In my opinion the BRRR Technique (Buy, Renovate, Refinance, Rent) seems to be the way to go. For long term wealth.

Personally, I am flipping to pay off my education, then will start with the BRRR technique and probably combine that with more flips for quicker cash.

Listen to the podcast with @clayton morris. He talks about finding your "Freedom Number" this should give you more insight :) Good luck!

@Ernest Sampson It's the sales person in me :)

@Turquoise Brown-Utley Perfect, well if you have a bunch of spread you can definitely make a higher offer. I would ask your realtor what the listing agent says in regards to where you should be to win. They typically know what similar properties are going for as far as over/under listing price. Just be careful because the agents incentive is the higher the price the better.

Depends on how much you are profiting for the year - Partnership if less than 70k, and S-Corp if more. That is the general rule of thumb my CPA told me but I am not a professional either. :)

Income from a partnership is subject to self-employment tax - not a big deal when you are first starting out, eventually you get around the self employment tax by using an S-Corp - with an S-Corp you have to pay yourself a reasonable salary legally, our accountant recommended not switching to S-Corp until we are profiting 70k

@Ernest Sampson Definitely have a plan before you call them. And I recommend calling not emailing. If you tell them you are a REI looking for properties, many times their guard will go up immediately.

They will ask what area you are looking for, what price range you are looking for, your experience, etc.

In my experience letting them know that you are looking for a long term relationship with someone who knows the area like the back of their hand, where you can do multiple deals together, and also letting them know that any properties they bring you, you will relist with them once flipped (this part only applies to flipping) usually gets them interested enough to at least start sending you properties. They will probably put you on a drip campaign, which is fine, I personally dont like drips because I want agents to send me actual properties so that I dont have to sort through the bad ones because I work full time and dont have a lot of time to do that. If I wasnt working full time I would say bring on the drip campaigns! Good luck!

@Turquoise Brown-Utley

For me it would completely depend on the rehab of course like @David Dachtera said. And financing. Are you paying cash for the house and the rehab? Are you getting a loan? HML?

If you are paying all cash you can afford to pay more because you aren't paying for the loan or splitting profits with a JV partner.

If you are doing an HML or traditional mortgage and a JV partner for the rehab and loan cost you have a lot less wiggle room than an all cash offer. I hope this makes sense!

Also, how are you calculating ARV?

Hi Kyle Keever definitely get out to the meet ups Jennifer King mentioned. Meeting people in person to network goes a lot farther! One in Kirkland tomorrow (4/8) and one in Seattle Tuesday (4/12). If you reach out to Troy Fisher and Kevin Carbon and Tiffanie (hasn't accepted my colleague request) they will get you all the info! :)