All Forum Posts by: Chris Calabrese

Sure, you could make more profit by buying the house and just hiring him (or someone else) as a GC, but he could make more profit by just borrowing money from you (or someone else) and doing the flip himself. So the answer may lie in who locates the deal - that's truly the hardest part of flipping houses in my opinion.

I started this very same way, and we agreed to a 50/50 split. It's a good place to start on the first project when it's hard to determine up front how much value each partner brings. I also think that in this arrangement, your partner has much more incentive to do a quality job and come in on time and on budget, especially if he is fronting the money for labor and materials. To me, this is where he earns his additional return above a typical GC fee.

I self-manage my 4 rentals, and would probably do so until I hit 50 properties or more. Even at that point, I would hire an individual to work directly for me in lieu of a PM. Then again, I also do my own book-keeping, lay floors in my flips and rent U-Hauls to move my own staging furniture, so I'm probably not the average investor. I do real estate because I love it. I also believe that if you want something done right, do it yourself.

After 4 years, I haven't found managing tenants to be that time-consuming, and like a few others in this thread, I sort of like the "game" - reading people, trying to squeeze every penny out of each property, etc.

Welcome to the board Ryan. I lived in Federal Hill for a year after college, in 2003 when all the neighborhoods around the harbor were really taking off. I lived down on Patapsco St past where the renovation had reached, but I could tell it was moving in that direction. I'm curious to know how it's done in the past few years with the RE bubble. I know a LOT of homes there were investor owned.

Since you are from there, you obviously know that Baltimore is one of those cities where the neighborhoods can change quickly from one block to the next. It's an inconvenience when living there, but could really affect you when trying to make money investing.

Seems like a good area to buy a 3-story townhouse and live there and rent out some rooms to cover the mortgage.

Both. Flip 6-10 per year and buying 3rd rental this year, and hopefully 1 more before year end.

REI is a full-time venture for me, so this is the best combination for short-term income and long-term wealth building.

All Sherwin Williams...We've been using flat China White for walls and semi-gloss white for trim. I've used Kilim Beige a lot and it ends up looking a little pinkish. According to a designer I know, if you want more contrast, Softer Tan is the only SW beige without any pink tint to it.

For exterior, we have found a nice combo of Serious Gray with white trim and Sundried Tomato doors and shutters...we have received more compliments on this color scheme than almost anything we have done...see listing below...

http://www.irongatecharleston.com/listings/1808-sundancer-lane/

If it's an otherwise attractive and healthy tree, I would limb up the tree as high as you can and see how it looks, and if it's still in the way, cut it down. I think most people like some trees and shade as long as the yard doesn't look overgrown.

For the driveway, I would match it to the neighborhood or area. Around here, it's almost all cement, so an asphalt driveway might look odd.

Welcome Tony. It sounds like you have a good realistic plan and its a pretty good time to jump in. I would recommend starting close to home, and I'm sure others will as well. I know you live in an expensive part of the country, but try to make your first investment as close by as possible so you can be actively involved and really learn the ropes. It will make it much easier to hire property managers, contractors, etc. later when you know what to look for. Just soak up all the knowledge you can on here and good luck!

I'm out there Brandy and I'm lovin' every minute of it. (obvious Seinfeld reference)

I'm in the Charleston area doing 6-10 rehabs a year, mostly Goose Creek and Summerville. Also been picking up a few rentals when a good deal comes up. I'm a realtor as well and will probably go for my broker's license next spring after I have my 3 years in. Trying to develop as many income streams as possible. The multi-family market is probably the one I know the least about.

South Carolina is a great place to be right now. There's a lot going on and many areas are growing quickly. Good luck with your new real estate endeavors.

I have been a lender on Prosper for a little over 2 years. I have a small amount of money there, but have a decent sample size with over 80 loans between $50-100. I've had 3 loans charged off, but still returned 14.75% over that time period. I tend to be pretty selective on the loans that I buy, and I think that I can maintain that type of return.

As a borrower, the rates are definitely high, but probably appropriate for the risk of an anonymous unsecured loan.

I love the peer-to-peer model, and I hope that laws change where it can be used for mortgage lending. I guess it's already happening in a few states.

I generally find that we can refinish hardwoods for less than laying carpet. We pay $1.25/sf for sand and 3 coats of poly. Post an ad on craigslist instead of calling flooring companies. You need to find a guy who will do some side work for the same price that his flooring company pays him.

You would be surprised how good those floors could look. Once you sand off a 16th of an inch, there is brand new wood underneath. With even a halfway decent job, they will look awesome, and as long as you go natural any remaining stains won't really show. Also, I think worn hardwoods look better than dirty carpets any day.