All Forum Posts by: Daniel Moscoso

I am wanting to know what are some of the best ways to screen a Realtor for best fit and effectiveness. The home in question is a flip deal, needs quick turnaround. 

What questions to ask? How to verify that their stats are real or not. What questions to ask to verify if they really know and understand the market and submarket(specific neighborhood(s)). This is all in context of a home that just finished rehabbing and now needs to sell ASAP. 

Thank you all for your comments. These have helped clear up my questions and concerns. Thank you! 

@Ned Carey Thanks so much for your thoughts! I am still in the process of doing my due diligence, I took your advise and am looking at the public records. @Rick Pozos, I feel a little better hearing that you can make high returns like that, if it's structured right at least. I would have my name in the dead as well, which is good collateral. Rick, I also wanted to ask how you would present a deal to another investor? For example I find a good deal, but I need some help with the rehab and I need a partner. What variables would you share with a prospective investor? I have an idea of what I'd share, like the potential return (cash on cash), what the money will go too, the ARV compared to the purchase price and the approximate length we plan to hold on to the property. What else? I don't know if you can ask stuff like this on Bigger Pockets, but those are my questions. Thanks for all the help everyone!

@Nick C.Thanks for the help Nick! 

@Nick C.Got it! yes he does have a good track record as far as I know. I will have to ask for more details on previous projects. So you would say that 10-25% return on a flip is a standard expected return? Would you happen to know what a return on a flip would be for Texas? That's the area I am working in. 

@Jim Goebel thank you for the response! All of you. What would you say a standard normal return on a single family flip deal? I do my work in Texas, San Antonio specifically, what is a normal expected return? I would like to be able to compare. 

I am looking at partnering with a man who says that he can get me 25-120% returns on a flip. This seems way too high for my understanding and sounds a bit sketchy. For example, if I invest 10K in a deal, and my money either goes to closing costs or part of the rehab, he says that I could make around 3-5K after about 2-3 months. It sounds reasonable I guess. I am unsure of what a regular return on a flip is, hence my question. I am a complete newbie to this business and I want to avoid losing my money. Any thought? 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $250,000
Cash invested: $50,000
Sale price: $375,000

This one was my first one and a blunder. Long story, but a great learning experience.

What made you interested in investing in this type of deal?

It was a unique house in a great location.

How did you find this deal and how did you negotiate it?

I found it through one of my Real Estate agent friends.

How did you finance this deal?

I used a hard money lender and two investors.

How did you add value to the deal?

We remodeled the entire home. Fixed the walls, updated the electrical, re-did the kitchen and changed part of the roof. The house has a unique old classical interior which we tried very hard to make it stand out, while at the same time bringing it up to modern times.

What was the outcome?

The outcome was that we sold it after about 10 months on the market, it took us forever to be able to get the home fixed. We had some issues with the financing, which also took us a while to get it to workout perfectly.

Lessons learned? Challenges?

I learned that good ethical contractors are hard to find. We got ripped off multiple times by different individuals. We had to redo much of the work and our cash reserves were completely depleted. We need to come in with more structure and have a better idea of how to qualify people to do remodel work.