All Forum Posts by: Austin Works

@J Scott I am actually following your sample business plan that I downloaded from 123flip.com - in the business plan it states to focus on inexpensive marketing. Would you say that due to changes in the market, it is now necessary to incorporate more expensive means of marketing? I've tried direct mail before with poor results for several months consistently. 

@J Scott, currently, I am posting on Craigslist, networking with wholesalers and realtors and occasionally driving for dollars, though I have not made this regular practice. I've had a great 2018, but I'm still at the mercy of wholesalers and the MLS for the most part. I'm looking to become proactive in building a steady flow of leads so that I can scale my business, rather than being reactive to leads if/when they arise.

How are you building momentum in your flipping business? How do you keep your pipeline full?

@Greg Dickerson, not all are this lucrative, but this is a good average. I typically range betweek 25-35k, with 30k being a more realistic average. These are definitely becoming harder to find, so I am looking to incorporate new strategies to make more deals work. 

I see other investors building on to existing houses to create more spread on their flips, but I just don't understand how to make this work. I have done several flips, but never incorporated an addition. Most neighbohoods that my flips fall into were built in the 70's-80's, and there is no new construction.  Can someone share an example with numbers of what a deal might look like that incorporates an addition? My typical flip looks something like this:

Purchase price: $50,000

Rehab: $25,000

Holding: $3,500

Selling costs: $$10,750

Sale price: $125,000

Price per square foot: $95 

Since values in these areas aren't sky high, building on an addition looks like a break even at best for me. Any help is greatly appreciated!

Are any of you flippers having success with raising money privately for your flips? I am just curious to know how you approached this situation, how you found your private lenders, etc. I have experience to show my successes, but did you put together a formal presentation or something to show potential investors?

I currently have my own cash and a line of credit, but i tap out quickly and I am stagnant until I sell or refi at this time. Are their other ways to fund cash only auction purchases? 

@Aaron K. that makes sense. I will be using a line of credit, so there will be interest accruing. I live in Louisiana, so Winter is almost irrelevant as far as temperatures go, I was only referring to how slow the sales get during that time. It almost seems worth holding off on listing to achieve a higher sales price when demand is higher, rather than being at the mercy of the few buyers looking during the off-season. 

When flipping houses that are projected to be complete during the winter, is it better to go ahead and list at that time or possibly rent it out initially with plans to list for sale at a later time when buyers are more aggressively looking?

@Marcus Auerbach, I'm really looking for someone to help with generating leads and viewing properties. How could I structure this on a 1099 basis?