All Forum Posts by: Bret Burkett

I live in Dallas and have a neighbor who is looking to sell a house that he owns in San Antonio. Pretty sure he owns it outright and he said that if his renter doesn't buy it from him he'd take $125k for it. I imagine it needs a small amount of work but he says the renter(who is a friend of his) takes great care of it. ARV seems to be around $170k. Rents look to be around $1,350.

Is this a deal? If so, how should I procede? I want to help him out but also break into RE. I'm thinking this could be my first deal. 

Thanks in advance for the help. 

:-)

https://www.youtube.com/watch?v=i4GBjj4UKKw

Hey BP! I have been trolling this site for a little while now, learning and saving money. I now have an opportunity to start doing some deals with a partner. We are looking to do a few flips at least in the beginning to build up some money. I would act as the GC, do the work and would bring the money to do the rehab. They would buy the house with cash most likely. Possibly a loan. We are looking to buy a house for ~$60k that would resell for ~$100k. (Just rough numbers to give yall the idea.)

So, how do we structure this? Our initial thoughts were to get estimates from several GC's to see what they think the whole rehab would cost and assign that value to me as the percentage of the deal?

EX:

- $60k purchase price, holding costs, etc. (Partner)

- $20k in material and labor (Me)

- Total investment: $80k 

- $20k/$80k = .25 or 25%

So I would be cut in for 25% of the potential profit.

What do yall think? Have you used any other structures? Does the above seem fair for both sides?

Thanks so much in advance.

Is the deck that much more likely to get termite damage because it is not built on blocks or with posts cemented into the ground? Especially since you are spraying yearly? It would just be bad to lose a tenant over a potential non-issue. You could ask your termite guy what he thinks. 

Welcome welcome @Blake Watkins! You and I have the same goals.  What part of Fort Worth are you looking at working in?