All Forum Posts by: Dave Vona

When creating a Independent Contractor Agreement I've seen where someone that is flipping properties will include terms around the completion time of the project. They'll include an incentive for completing the work on-time or early, and a (weekly or daily) penalty for not finishing on time. I can see this being useful when a General Contractor is involved but is this a strategy that can be used if you're utilizing sub-contractors for all the work. It's much more difficult to set individual completion timelines for each sub-contractor when there are so many dependencies between everyone working on the project. Does anyone have any thoughts on how this could be structured? Thanks.

I'm looking for suggestions anyone might have on creative financing/owner financing a home that requires $50-60K in rehab. I would prefer to see if I can do a buy and hold with this property as opposed to a flip. I understand how the owner financing part would work if there was no rehab, but even if I had the funds to do the rehab, how would I turn the home into a rental and recoup the rehab costs in a reasonable amount of time. The only approach I could come up with is to use a private loan but, unless that loan financed over a long period of time (i.e. 20-30 years), paying the owner his P&I plus repaying a 3-5 year loan on the rehab doesn't seem like a viable option. Does anyone have any experience with owner financing when rehab is involved?

Thanks.

@Jerryll Noorden Thanks for the explanation.  I do like the idea of using technology to get leads, considering this is 2019.  I think it's something I could get done on in the evenings and weekends since I'm still working a full time job.  

I'm planning to get that first deal with my partner to flip through a wholesaler, just so we can focus on one thing at a time.  Then, I'll start planning on how to market so we'll be prepared for the next deal.  So is SEO consulting a side business of yours?

@Jerryll Noorden thanks for reposting.  I saw a video on youtube of that exoskeleton, pretty amazing.  But the funding was cut?  That's really unfortunate.   I had to look up the concrete canoe, I hadn't heard of those races.

I think you've convinced me, SEO is the way to go.  Although it sounds like you also propose using direct mail, PPC, etc once the website is up an generating leads.  It's more of a comprehensive marketing approach when the other methods are included.  I just need to decide when I should start this.  My partner and I are planning to buy from a wholesaler just to get started so we can focus our attention, and then I had planned to begin marketing once we generated some capital.  Thanks for all of your input!

Sorry, I didn't mean to hijack this post.  I was trying to respond to Jeryll on another post.  My apologies.

Hey @Jerryll Noorden, thanks for your input.  I was checking out your website, sounds like you had an exciting career in robotics.  I'm an engineer as well but can't say it's as fun as that sounds.

So SEO I always thought of as more of an "advanced" approach to lead generating and that you had to start with direct mail, bandit signs, etc.  Doesn't it require a lot of time to generate the amount content needed to start bringing in leads?  Do you recommend one of the training courses that the lead carrot-like sites offer when you purchase there packages (in addition to reading your blog posts, of course)?

@Chrissy Parsons.  I appreciate your reply.  The highly targeted lists seem like a better investment than some of the other lists out there, unless you have a large budget.  How do you find what works best in ones market?  Do you start with several different lists but a number of addresses and see which ones are getting responses?

Thanks @Andrew Briggs for the feedback.

I just posted a calculator over on the FilePlace under Tools in BiggerPockets. I thought this might be helpful to those getting started in rental home investing. It looks at how many rental properties, and how much rental income, is generated if you continue reinvesting the your cash flow. It looks at these numbers over a 30 year period. I originally developed it when I was looking at turnkey investing. You can input the ROI, initial cash investment, out of pocket cash invested each year, and the cost of the rental properties. It showed me how quickly my cash flow could grow each year by continuing to reinvest my profits, and some additional cash from my W2 job, each year. The file is named "Rental Income Calculator" if you'd like to download it. I've included a screen shot of the calculator below. Let me know if you have any questions on using it.

Hi, I'm looking to start flipping homes in Denver.  I'm working with a partner and our initial plan is to buy homes from wholesalers.  Once we generate some profit, I'd like to try putting that into marketing directly to home owners.  I know there are a number of lists and approaches to direct marketing and you need to remain consistent with one or two methods to start.  I was wondering how to gauge which lists are going to be effective in a competitive market like Denver.  It seems you could go broke if you had to try every list for 6 months first to see if it was returning any deals.  Does anyone have any suggestions for how to find which marketing approach is going to be most cost effective in my area?  Thanks.