All Forum Posts by: Chris Laino

@Anthony Dadlani buyer is not using borrowed money, so how do you calculate it into your analysis?

I'm working with an all-cash buyer and helping him do an analysis for a flip, but I want to make sure we aren't missing any expenses (or have them in the wrong category).

Fixed Costs:

1. Purchase Price

2. Taxes

3. Insurance

4. Attorney Fees

5. Closing Costs

6. Commission

7. Inspection

Variable Costs:

1. Rehab Cost

2. Utilities 

3. NJ Realty Transfer Fee

I'm working with an investor who found a property with GREAT potential, but I'm having a hard time finding comps for an ARV.

Property details:

• ~1800 sq. ft Ranch
• 1.07 acres
• 4 bed, 2 bath

There are only 3 "comps" within .5 miles from property and 20 within 1 mile (sold in last 365 days). The problem with the comps is most are 2-3 beds, 1-1.5 bath, 1200-1500 sq ft on .25-.5 acres (and are very outdated). How can I best determine ARV without similar comps?

I'm working with an investor who found a property with GREAT potential, but I'm having a hard time finding comps for an ARV.

Property details:

• ~1800 sq. ft Ranch
• 1.07 acres
• 4 bed, 2 bath

There are only 3 "comps" within .5 miles from property and 20 within 1 mile (sold in last 365 days). The problem with the comps is most are 2-3 beds, 1-1.5 bath, 1200-1500 sq ft on .25-.5 acres (and are very outdated). 

@David Robertson thanks, this is helpful. I see that you required contractor to have General Liability and workers comp insurance. Did you have your own insurance on top of this? If so, was it builder's risk insurance?

@Kris L. thanks for the recommendation I will check it out!

Does anyone have a very detailed house flipping scope of work they would be willing to share? I want to give one to my contractor to fill out so that we are on the same page and there aren't any "forgotten" details that will end up costing me more in the end (aside from true issues that couldn't have been accounted for during due diligence). 

Any help is greatly appreciated!!

@Chris K. @Stanley Bronstein thank you for the reply. Aside from the tax benefits, I'm looking at an LLC for the legal benefits to protect my personal assets. Would I have to get insurance through the LLC in case a contractor or someone gets hurt at the property, or would the insurance on the house cover that?

I'm looking to flip a property, and I want to get insurance (to cover the house if there is any major damage, but also in case a contractor or anyone else gets hurt at the property). Do I just get regular home-owners insurance, or is there a special type of insurance I get instead of home-owners insurance? Also, how much should I expect the insurance to come out to? (Details below)

Property is selling for $150k, 50-60k in repairs, ARV of $250k (conservatively).

I'm looking to file an LLC but not sure where to file or the benefits are to one state over another.

I’m located in NJ but my partner is located in PA. Our first project will be in NJ but we may venture into PA at some point. I know Delaware is very business friendly, but I’m not sure of the benefits of one vs another. I saw that South Carolina had a cheap filing fee and never a renewal fee so would that be beneficial to give me protection and be cost effective?

Also, what's the quickest way to form an LLC?

Any help is greatly appreciated, thanks!