All Forum Posts by: Bill Hinshaw

I did on my first flip, which is still in progress. I wanted to know everything that was wrong with the house and don't quite have the experience or comfort level to do it myself. Here in Texas, I will have to disclose that inspection report when I sell. My intention is to turn this into a positive by going line by line through the inspection report and noting everything we fixed. Hopefully this will work in my favor.

Most of the rehabbers I have spoken to in this area do not do the inspection because of the disclosure requirement.

I'll be there. Looking forward to it.

Awesome flip. $38k purchase and $131k sell price - that is an impressive spread for a low end home. Hard to go wrong when you are able to buy that low. Wow.

Love the drywall and lighting improvements on the ceilings in the living and kitchen areas - really updated the home.

I am doing a deal like this right now with my partner @Michael Kaufman. I provide the financing/closing/carrying costs, my wife handles finish and staging, Michael is the GC, and we split 50% of profits (with my wife and I counting as 1 part of the partnership). Michael is very knowledgeable in construction. It is working well for us.

As others mentioned, it is a favorable deal for you, but it isn't clear how favorable it is for your partner. It is not necessarily a bad deal for him/her. Marketing is a pretty large investment of time and resources. If you are good at it, that is significant added value. I would also think you would need to work as the GC for this to be more equitable.

You might back off your percentage of the profits a bit until you get a couple under your belt. Instead of bringing in a GC and watering things down further, you might see if you could pay someone to mentor you through your first rehab.

If you aren't finding the deal AND managing the project as GC, then you are essentially a wholesaler.

Safe, and barely dry. How do you end a drought? With a flood, obviously. Hope you are ok in Houston. Thanks for your feedback on concrete costs. $4.50/sf seems very reasonable - hope I can get that price here.

Any updates @Jamiah James? Did you get clarification on the deal the hard money lender was offering? Did you find a source for the $2500? 

In the link Stanley posted, this property was listed in January 2015 for $71k and bought in May for $53k net to HUD. Do you know why it took so long to sell? If the property was really worth 120k with less than 20k in repairs, I would think it would have gone very quickly on the open market. Maybe that area has appreciated rapidly since the beginning of the year?

I'm not saying you shouldn't do it, but it might be a good idea to double check your assumptions and due diligence. 

I have no experience with concrete, but I am possibly putting in a new driveway on our current flip. The provided link estimates $2800 for 600 sf of concrete ($4.65/sf), with 20% provided for overhead and 20% for profit.

Does that sound right to those who are familiar with concrete costs? Seems low to me.

Your hard money lender - are they wanting interest on the financing AND half the profit? No deal if that is the case. If they are willing to finance the deal and all you have to come up with is $2500, and you split the profits, that is not a bad deal.

What else does your hard money lender bring to the table? Rehab experience? Do they know contractors in the area?

What is the worst case scenario? If you guys are totally wrong and end up losing money, how much would you lose? If I understand you correctly, all you'd be out is the $2500 you put in. If that is the case, I say go for it. You will learn a ton.

My partners and I are working on our first flip and will be doing something very similar to the "modern traditional" picture in the link in the original post. I don't like the style very much, but we are rehabbing a late 50's ranch in a hipster/young parents/young professionals area of Dallas and feel like we need to go with the current trends.

My first thought for pretty much all the images in the link is "That's not going to last." We'll see how it works out. As long as it helps us sell, I'm fine with it.

I'll post some images once the kitchen is in.

For layout work, I've used Homestyler and found it very easy to pick up. Lots of people would recommend sketch-up.

In addition to Jedd's inputs, I would also wrap those posts. Cedar posts with some other cedar accents (shutters maybe) would be a pretty cheap way to make it look nicer.