All Forum Posts by: Michael Bardelmeier

Hey BP'rs, we've bagged our first wholesale, and we're now considering flipping one ourselves. I need your help in finding a good general contractor and/or subcontractors for SFH flipping in and around Los Angeles County & Orange County. Thanks in advance for your replies.

Hi @Marc M., let me first say that I have no experience with HOA liens. However, I do recall a thread a read where it was discussed. The strategy discussed was to fix up the unit and rent it out to a tenant (with full disclosure that the home would be foreclosed on) at a fair market price. If all went well, your investment would be recouped within a few months and the rest would be profit. Seems like this risky strategy worked best when the banks were overwhelmed with foreclosures and it took a long time for the homes to become REO.

Thanks @Bhekizwe M. & @Walter Roby jr for your comments!  Walter, sounds like a good find.  I'd like to learn more, please PM me or give me a call to discuss further.

@Logan Turner - The administrator of a single 6 bed RCFE is generally going to be the full time operator/caregiver with minimal staff.  You can be the "licensee" of a 6-bed, and hire an administrator, but you've already figured out that your profit margin is pretty thin.  To run a profitable 6 bed concept w/out making it your full time job, you'd need to open several of them as the "licensee" and hire one certified "administrator" to run them all for you.  There are pros & cons to owning several 6-beds vs. one larger facility.  Feel free to PM me to chat further.

@Logan Turner - There are also some additional programming & staffing requirements to operate larger than 6 beds in CA.  Many operators (licensed administrators) have a caregiving background and don't necessarily have (or want) the experience or managing staff.  Therefore the 6 bed "board & care" concept is very popular. 

 I agree with your strategy Greg, and so do the demographics.

I hear you @John Thedford and your concern about the lack of integrity amongst many people who call themselves "wholesalers, investors, etc." is the very reason that my business partner @Jason Fitzgerald Smith and I started our company.  We saw an opportunity to adhere to a higher level of professionalism and we've been fortunate to meet and network with some incredibly honorable people both here on BP and in our local SoCal market.  We work only with experienced and well funded fix-n-flippers, and we stand behind our offers - willing and able to close on any deal we can't assign.  We believe that we can do well in this industry by doing good for others (sellers & buyers) & so far we've been proven right.

Thanks for the supportive comments @Michelle DeWoskin, @Kiersten Vance, & @Michael Nicholson!! Yes, they do make a difference - :)

Hi @Craig Kleffman, I'm experienced (just closed my first wholesale deal) and would be happy to share what I can with you.  Please PM me.

Hi @Chris Gould.   As other's have commented, it's really your buyer's issue, but in an effort to keep good relations with your buyer for future wholesales, I'd advise a "cash for keys" scenario where you (or your buyer) pay them a fee to vacate.  

Also, a little humanity can go a long way in these situations and treating the tenant with respect and dignity will help them to be more cooperative.  I guess that'd be more of a "cash & kindness for keys" scenario.  Good luck closing this deal.