All Forum Posts by: Bill Hinshaw

Best of luck Evan - I hope this leads to some great opportunities for you.

My target is 15% ARV, but I think scope of work and time have to be taken into account. The 15% number is for major rehabs with 100k in renovation costs and exit prices around 500k. These are typically 4 month projects.

I've been toying with the idea of cosmetic only rehabs on houses built post 2000 where I might only make 5-8%, but I can get in and out in 30 days rehab. Hope I can find one like that to do this year.

Congrats Kandi. That is inspiring stuff... an amazing accomplishment. Would love to see some pics.

Sean - Congrats on your first flip. That looks like quite a large project!

I love the drawings for the porch and suspect it will be necessary to get into the 250k range. Do you think you can get full price with the current front elevation? In my market, I would expect to have to change that elevation to get full price. Same goes for your parking situation - buyers in my market would expect some solution back there before paying full price.

Not quite sure on the ground wire situation. I suspect it will be highlighted by the inspector as an issue. Maybe some other more experienced flippers can speak to that one. 

I am a huge fan of hardwoods sanded and finished on site, and think that would match the style of your home better than engineered wood. I can get that for $5 in my area.

Creating the master suite would be a big selling point as long as you still have a reasonable number of bedrooms.

My partner and I have bought under an LLC, and the LLC issues a form (don't think it's a 1099, but can't remember... maybe 1065 and K-1?) at the end of the year showing our profits and splits.

I'm not sure how buying in your names and then transferring to an LLC does anything but increase your title costs. What advantage would you be trying to gain by doing it that way?

REIGuard is a national company that provides a monthly policy and can be cancelled at any time. I've insured all 4 of my flips through them. They run about $210/month for $250k of coverage with a 3k deductible.

I had a claim on my last property due to a hail storm, and they were ok to work with. They're a little more particular than your typical homeowner's policy with a company like allstate. All repairs had to be documented with receipts and pictures before they would pay all depreciation. The typical game of the roofing company covering your deductible to get your business is not possible with REIGuard, because they only pay for documented repairs after the deductible is fully met. Not saying that is good or bad, but it helps to know that up front. 

@Brandon Giarusso

Hey man - curious how this all worked out. Any updates?

We did not wait for ours to settle. We had some minor drywall cracking that showed up after the foundation work, but nothing like you are describing. I understand things can settle a bit after foundation work has been done, but I've never heard of floors buckling because of it. Seems extreme.

Did you have piers added? Shims added? Beams replaced? What was the extent of the work that was done? Is the floor noticeably out of level now that things have dried out? It shouldn't be. You might need to have your engineer and foundation people back out.

@Brandon Giarusso

Yours is a really interesting case study. I went back through and read the entire thread. I had missed it yesterday when you said you had already offered the wife $6500. That seems like an overly generous offer, given that you also paid for the staging furniture as a rehab expense. She needs to provide you a bill that details her charges, just like any other contractor would.

If I were in your shoes, I would have to have a difficult conversation with your partner and possibly his wife, and talk about all the issues you've laid out here. 

I hope you will let us know how this gets resolved.

@Ashley Schroeder

If your husband was a 50% owner in the business, would you still feel the same way? What if he were only a 5% owner... would you still do all that work for free? Are you ok with people other than your husband profiting from your efforts while you take nothing?

I'm not discounting your position. I actually lean more your direction overall. As we try to grow a business, it makes sense that we would sacrifice some on a specific issue for the overall long term benefit of the business. However, there are limits where that no longer makes sense, and everyone's limits are different.

I do disagree that  @Brandon Giarusso partner is intentionally taking advantage of him. He may be. It is more likely that his partner didn't do a good job of resolving this up front. He was caught in the middle and avoided the conflict as long as he could.