All Forum Posts by: Bruce Dalis

The hardest part of flipping, aside from finding inventory, is valuing the deal. You need to know if the numbers will work or not be determining the Maximum Offer (MO) you will make. In order to arrive at that, you have to a real handle on AVR (the price you will expect when you sell), the rehab construction estimates, knowing your fixed costs and selling costs. Also, in the mix is the profit you are looking to achieve. You will need the assistance of a RE Broker who will do comps on your house post rehab to determine the ARV. In order to find out the rehab estimate a contractor will need to do a walk thru with you, determine the level of rehab and issue you a construction quote. This works fine for the first deal or two. Without some work going his way, a contractor will not continually do estimates his time is with something. The same can be said of the RE Broker, they will loose interest in you without getting a listing or representing you as a buyers agent. In both cases, neither are looking out for the benefit of the investor.

As Realtors, investors an contractors, we can help you value a deal as your consultant. We are on your side. Our valuation report includes MLS comps, a priced schedule of work for the rehab, and an estimate of what the highest price (MO) you should doffer is based on the ARV, Rehab, Profit, fixed costs etc.

Send us a PM of we can help. 

look at house flipping spreadsheet

To begin with as @Brit Foshee mentioned, you need to know what the ARV would be. AVR = what you would resell the house for. If that is equal or less then what is owed to the bank then do not pass go. The way to determine ARV is by doing comps (you will need an RE for that). What condition is the property? If it needs repairs and renovation, you will need a rehab estimate from a contractor. If the rehab costs. What you really need is someone to value this deal if you do not have the ability. PM me, I can assist.

Its called an ancillary apartment permit and is only available to an owner occupied MFR.

New to this forum....

Im an investor who helps other newbie and oldie investors value their deals. Our service includes MLS comps, construction estimates, fixed expenses and all info that you need to determine your maximum offer.

I am writing this for new and experienced investors on Long Island, NY. We noted over time that many investors simply have trouble valuing a deal. Getting accurate comps from realtors is difficult and most contractors will do estimates only so often with out getting some work. Both comps and estimates are needed to determine the maximum offer on a flip property. Further, contractors and realtors are working for themselves. They do not have the investors best interest in mind. 

We see an opportunity to help investors determine if a deal is viable. Sort of a pre qualification if you will. We offer a valuation service that includes:

* Property Inspection

* Discussion with investor

* Rehab construction estimate

* Comps for AVR

* Fixed costs

* selling and buying costs

* Maximum Offer

We bring all of the parts together and most importantly, we are on the investors side. 

Does this sound like something the investor market can use?

$20,000 is equally crazy; find another REIA. I am a member of Long Island REIA. They have a very good mentoring program. Its held as a class with monthly meetings and an earn as you go concept whereas the class works together on an investment. Also, they go heavily into other type of investments such as notes, MFR, and transactional lending. They really seem to be there for their membership's education.

FB is the thread subject that will never end. 

My experience is that $50,000 spend on FB training is ridiculous. Ys training is important, but you can get just as good if not better here on FB or more importantly, at a good local REA. There are quite a few members of my association that took the big dive with FB and regret it. I can  not say how they applied what they learned and that is always a variable in using other's experiences when evaluating a plan.

In my situation, I decided to spend my first six months educating myself and attending every seminar at my REA that was germane to my business plan. Do you have a business plan? if not, thats your fist BIG mistake. If you are going tp be in real estate then get into real estate and fully immerse yourself. I read Scotts books which were invaluable, I became a Realtor, I became a BPO Agent, and established a seven figure line of credit, I worked with contractors and established a program so I could value rehab costs, and I brought silent partners on board to help fund larger projects. 

Results in less then 12 months: 

1) purchased four properties

2) two are rehabbed and sold

3) two are going into construction

4) Started a project valuation service for investors to assist them with comps, construction costs, and establishing maximum offer prices based on AVR, Construction, fixed costs and rehab costs.

5) established a great team that includes accountant, legal, a great wholesaler and agents always on the look out.

My point isn't to toot my own horn (I guess I just did) but to demonstrate what can be accomplished by full immersion, education, planning your work and working your plan. This year my target is 9 to 10 rehab/flips. 

By the way that $50,000 I saved by not going FB, just purchased a property for me. You will learn more by doing....so go do.

Any NYC area investors using IC? If so, what are your results like?

I am looking at a license for this company. They seem to have very comprehensive training. They push their "we Buy Houses" registered name as a major asset of becoming a licensee. Is anyone presently involved with them?