All Forum Posts by: Charlie John

Hey everybody,

I am considering deploying marketing to the Rochester and other small southern MN cities. I am looking to connect with investors doing deals down there. My goal is to ultimately find brrrr deals. I will also buy and resell (wholetail) if it makes more sense. The last two deals I've done we're flips and my purchase plus rehab was 52% and 45% of ARV. I do have access to capital to do this but always looking for new relationships.

I am having success sending direct mail up here in the cities but know the market is very saturated with other investors/realtors doing similar mailings. I feel like Rochester and other cities may not have as much competition. Any opinions there??

Anyway, I am skilled at marketing, negotiating great deals, good design/construction and looking forward to driving down there to check what southern mn has to offer. Thought it would be a good idea to see what other people are doing in those markets. I like the idea of investing away from home but not too far away, because it will force me set up systems. Thanks y’all!!

Doesn’t matter. If it’s listed, you are probably over paying anyway :-) 

You need to be in the game consistently for the long term. Great deals are found/created every day , in any market. YOU have to be determined to find them. Plus you have no idea what the market will be like when it does change. What if all of your current sources for financing disappear because of the changing economy. Then how will you buy buy buy? 

My point is if you are serious about the business and finding deals, then great opportunities will come to you in any market and that’s all that you need. 

@Scott P. thanks for your post! Can you tell us a little more about your experience developing  small deals? I am rehabbing houses and flipping now but I constantly think about going after lots that I can subdivide and sell off the existing rehabbed house and then building a spec house on the other piece of the remaining land. 

Do you have a particular deal that you could explain how you identified it? Was it easy to go thru the process? Thanks!!!

@Matt Moore I have had this dilemma recently as well. 

You absolutely need to keep a window in there!

We did glass block and it looks incredible. It ended up being cheaper than the custom window to fit our size and the materials were all at local store. You just need to make sure you have a skilled tradesmen do the work and it will perform. Eliminating natural light in a bathroom is a major mistake. You want to sell a quality product to the market (rental or flip) and keeping the window there will give you that. 

If you really need to remove the window make sure you add additional lighting light smaller recessed lighting, especially above the shower. 

@Casey Weiter Agreed. No signs of recession happening this summer. 

@Daniel Townsend exactly. I believe it’s only a few hundred dollars to have my attorney create a promissory note. Just let the attorney know what you are trying to do with your lender (amount, interest rate, length of loan, payment made in full at sale of house, etc) and they can write it all into the document. Easy peasy 

I have done about 8 flips in the last two years. Every cent was paid for by my private money lender. The purchase price including earnest money, closing costs, rehab costs and holding costs. I paid them between 10-15% on every dollar they put out.  They got paid back in full when the house sold, no interest payments. 

For me, this was actually easier to put together than a traditional loan or hml. They require too much paperwork. My private lenders know that I can perform so it’s all based on a handshake and trust. Yes , we do a mortgage and promissory note for each deal to protect them- but the attorney prepares that included in her closing cost. 

Go find a deal and then ask a bunch of people. Good luck! 

I agree that BP is one of the best podcasts.

Josh needs to continue being on them with Brandon because they literally have me cracking up while listening. They are a great pair for the podcast. The other hosts do a phenomenal job though too. Many other podcast hosts struggle at interviews but all of your hosts make it sound natural and easy and that's what makes it good to listen to. 

Hey BP,

I am currently working on a fix and flip where the budget started at 80k before demo and figuring out what to do (old house with funky floor plan). 

Purchase was 80k. House is 3/2 bath 1800 sq ft. Reno budget is now at 170k to finish it. All in position of 250k. 

This is my first major rehab and I just didn't know what I was getting into! I have done two other, mostly cosmetic flips before this. Once we started demo, the numbers exploded as I went over each line item that needed upgrading. 

Although it was an extremely stressful conversation, my private lender (family friend) has the capital to fund it and is going to help so we can finish the project. Since he funded the purchase and the first 80k in rehab ,  we are both kind of tied together on it. he is nervous about the house not selling for more than 250-275. The comps tell me 300-325. 

I am curious how hard money lenders or even private money lenders would react to their rehabber doubling their budget? 

Thanks for your feedback!