All Forum Posts by: Yinan Q.

I would ask the attorney to clarify. Sounds like the attorney is asking for how much the seller paid when purchasing the property. Again, check with the attorney.

@Alexander Romanov, nice to meet you and happy Thanksgiving!

@Julie Clark, welcome to BP! 

Which areas do you focus on? I am looking for flips, buy and holds in north King and south Snohomish. 

My two cents:

You need to get to know people in your area, let them know what you want to do and want you have to offer (skills/money/time). The best places to know people are local RE meetups and BP.

@Dottie W., if you don't mind, you can share the numbers of the perspective property and the HM loan you are planning to get. I am sure you will get plenty feedback on how sound the deal is.

The only reason banks fix up properties is to bring them to habitable standard so that buyers can get loans.

I have been thinking about the same thing recently and would like to share my thoughts with BP and get comments.

First, I think no matter how you decide to share profit/loss; the most important thing is to make sure both my partner and I feel comfortable about the plan. If either party feels the plan is not fair and being taken advantage of, the partnership is not going to work.

Questions to ask to determine a fair split should include:

• Where does the money come from? Are you using your own money or it’s financed with private money or hard money?
• Is the contractor partner doing the work himself or he just manages sub-contractors.
• Is the contractor partner’s labor included in the cost? In other words, does he get paid for his labor?
• Who

I think the simpliest way is to treat the contractor partner’s labor as money he puts into the deal.

For example, if I put in 100k to purchase the deal, he put in 50k worth of material and another 50k worth of labor, then we each have 100k in the deal. Say the house is sold for 300k and all other costs (holding costs, selling costs etc.) are 40k, our profit is 60k. Each of us will get 30k profit. 

I believe if there is money left after paying all debts, the remainder money should go the owner. I feel this is very unlikely to happen. If the owner has so much equity in it, s/he would do everything possible to prevent the foreclosure from happening.

I would assume a complete gut out rehab if I cannot see the inside and the outside looks in pretty bad shape.

If I were to buy it, I would pay ARV - repair - sale cost - holding cost - purchase cost - profit.

 Kimberly, I don't have suggestion on check scanner but I would suggest considering online rent payment or service like pay near me. You tenants save on postage and you don't have to worry about dealing with checks and drama like "I swear I mailed the check last week".