All Forum Posts by: Chuck Brickman

I'm looking for wholesalers and Bird Dogs in the San Antonio area. Ideally, I'm looking to buy at the 80% of ARV range less repair costs. Sweet spot between 40K-110k. Cash. Would also welcome duplexes. I'm privy to what's posted on the SABOR MLS daily so no need to send me those properties. I'm fairly experienced in the field in terms of comps and ARVs in the area.

I'm in agreement with Evelyn...it depends on the neighborhood and the cost of repairs you have to put in the property. I try to start with comps and work backwards...how much will I need in repairs/holding time, etc.,  to get it where I want it while still preserving my profit ratio. This holds true for buy and holds as well and flips. Once you get an idea of what works well (tiled shower/bath stall, tiled kitchen floor, appliances) in the respective price range this will go pretty quick for you.  

As an example, in my lower end properties many times I'll just paint, repair cracks in drywall, tile bath and kitchen, spruce up exterior and it's ready to go. As the ARV goes up I find the extent of repairs/improvements does too. The key for me is to have all this figured out before bidding on the property...then add some additional repair costs :)

I find it really helpful to talk with investor/rehab, realtor colleagues in your area to get a feel of what the ideal marketable property for your price range looks like.

Hope this helps. I am by far not an expert but have been doing this for about 7 years. 

Some of the best contractors I've found have been at Home Depot and Lowes. As Nick mentioned, you always want to verify their previous work and view. Also, by talking with other investors they are usually good at sharing who has worked well for them in the past. My only other suggestions is make sure you develop job specs on the job you want done...everything you want done and method if need be. Make it part of the contract...it serves both the contractor and client well.

Hi Scott,

I've been flipping and renting for about 7 years in San Antonio. Am always looking for good deals or just to touch base and build connections.

Thanks Mike. I understand you have to pay in full by Cashier's checks. It's also my understanding that you have two hours after the sale to get them the check. So what's the best way to handle this...do you bring a bunch of Cashier's Checks made out to different amounts or once your bid is accepted do you go to the nearest  bank for a check in the specific amount? I'm assuming there are some administrative charges added.

I also understand that you have to do some preliminary title research yourself prior to the sale to ensure you're not bidding on a second mortgage or their are title issues.

Is there an order the properties are auctioned off? What order do they go in and can I get a list of the order beforehand. I know I can get a list of the foreclosed homes being auctioned off beforehand.

I've talked with some other folks who have done this and they advised me that out of 100 properties available, after applying review criteria they narrowed it down to three. 

I've done quite a bit of flipping and holding purchased through other means but this is something I'd like to try.

Thankis 

Hi Rick,

I've been doing it about 7 years. I've done Driving for Dollars, postcards,wholesalers and the MLS. Price range runs the gamut although lately, prices are escalating in SA.

I'm interested in purchasing foreclosure properties at the Bexar County San Antonio Courthouse auction on the first Tuesdays of the month. I've read a number of articles on the bidding process but I still have some questions as to procedures. Be great to talk with someone who's familiar with the process.

Thanks,

Chuck

I like Darryl's suggestions. There is no one right or wrong answer. It's all a matter of dollars and cents in addition to risk. What is the other partner bringing to the table and is it economically beneficial to you...My other suggestion is to have a tight contract between the two of you...with contingencies and non performance clauses.

I've done this a few of times in the past...the first time I did it I made a lot of mistakes...the last few times worked out pretty good. Analyze options with costs versus benefits.

Great question.

I've found that it really deals with cost versus benefit. It all depends on your circumstances...your available and constructive time, finances versus holding costs. There is no one right answer...it depends. 

Rationally play the numbers out ahead of time...determine what potential costs will be using the various options presented.  Consider all options such as...contractors doing the work entirely at one time, in part, unit by unit, husband doing the work by himself, in conjunction with contractors, possible delays, tempermant etc. Once you see the financial specs I'm thinking it will help determining the best course of action.

I've had some great experiences with contractors and some not so great. Trust but verify. There are a lot of strategies you can use with contractors to limit the potential downsides. You need to be involved with checkpoints and control of financial expenditures.  

Give yourself a pat on the back and celebrate making 11k plus acquiring some great insight. I've only been flipping/renting for about 5 years and each time I do it I learn something new. If you can walk away with 10k when everything is said and done I always consider that a success...maybe it could have been more and next time you'll make adjustments and carry on.

I also agree with the previous thread...you make your money when you buy. No one looks out after your interests like you do...trust but verify. Don't take anything at face value...look for the money stream.

I frequently find most realtors and wholesalers that I deal with offer a high ARV and low rehab costs...I get it...time is money for them and we all are in business to make money.

You mentioned that the rehab time and costs were exceeded...that comes with experience too...and even with experience it happens. There are alot of measures you can take to minimize these types of risks. The greatest advice I could give is to find a good mentor...they are invaluable.