All Forum Posts by: Dell Schlabach

I suspect that is rather subjective, our group buys fixes flips about one a week, (45 in 2015).

Does that make our area better than other parts of Ohio. I don't have any real way if knowing but I suspect if we took our team to other places in Ohio, we would do similar business. 

I think the key is to focus on areas with good school districts, rehab entry level houses. 

For example we work, Stark, Summit and Portage County, but our search criteria excludes, Canton City schools, Akron city schools and Alliance schools. 

Thinking about coming up here and competing against us? 

If you find us some good deals in the Sarasota or Naples area, we can find you some good deals here. 

 @marvin mctaw, made a reference about writing something into the back end contract. Si he may have something of value to provide. I just explained to the title company, that I have a buyer for the property and would like to sell it right away, can I use the buyers funds to close, and transfer to my buyer right away.

We have another title company that is doing back to back closings for us now, with a cost savings. Their process is a bit different. I suggest you ask a couple title companies that you have a relationship with, whst you want to accomplish, ask them how you could do that and let them decide how they would like to do it. I don't use the terms double çlose, or simultaneous close, I just tell them I have a buyer, and would like to close to the new buyer right after it closes to me, can we do that.  same day, or following day? If they agree to this then ask about using buyers funds to close. Some may want you to have a note from your buyer to you, so techinacilly it is your money. We write up a basic purchase agreement. 

Some companies may want to not do a HUD on the second one, and do a courtesy transfer on the second deed, to the buyer, for the same price, buyer pays you for your fee. Title CO only chargees for the deed prep and second round of transfer taxes.

Best advise talk to title CO explain what you want to accomplish, and have them propose a method they are comfortable with that keeps everything legal. 

I second the J Scott Book on Flipping Houses, and Book on estimating rehab costs. 

I have read a lot of books, taken guru seminars and boot camps,  These are hands down the best how to manuals for the trade. 

Good luck in your ventures

You can always ask him to get a licensed electrician and plumber to pull the permits. I know a few capable contractors that do most of their own work and then hire a licensed contractor to pull specific  permits. 

Most GCs will have their licensed, go to, people to pull permits for them. 

Not a big deal unless a permit is required, and he doesn't have someone willing to pull for him, in which case YOU can get a licensed person to look at the work, make any modifications deemed necessary, and have him pull the permits, not everyone will do that, but you can most always find a few people willing to. 

 To better answer your questions can you clarify a few things.

Are you an agent trying to get listings, or a non agent trying to wholesale? 

When you say open properties, do you mean listings by owners not in the MLS, or do you mean active listings from the MLS?

No sure what you mean by open properties.

If the property is listed with an agent, you have to submit through the listing agent. The agent is representing the seller, and seller has a contract/agreement to pay  commissions, if there is no buyers agent then the listing agent gets all the commission.

It's illegal for an agent to split the commission with a non licensed person. 

Good luck 

 I would agree with the others, decide what you want to be doing three years from now. Then get a job in real estate where you will learn some of the key things you need to know. If that's becoming a real estate agent, or a contractor, or working for a rehabber, or a landlord. 

Creative thinking, finding a wamt/need and filling it is the best way to get paid well.

The problem with that in Ohio and I suspect most states is the way real estate laws are written. 

An unlicensed person can not make a profit, selling or leasing a house for another.

The way to do that "legally" in a wholesale situation is to get it under contract yourself and then selling or assigning it to someone else. 

The odds of being able to lease a property and then assign the lease to someone else is way to "creative"  and risky in my opinion, and most residential leases specifically disallows assignments and subletting. 

My thoughts

Interesting example, I actually like it.

I try to keep this in mind with partners and crew leaders. 

Exsmple works well  if there is a market for a monet, it can be a bit scary at times to test it, but if it works it is much easier for Monet, to paint a Monet, then for him to paint a Picasso. 

But if your buyers will only buy a Picasso, and not a Monet, you have to figure out how to get Monet to paint a Picasso if you want to scale up the procuction of Picassos, beyound what Picasso can do himself. 

Monet if he wanted to could probably paint a Picasso, or at least a significant portion of it to reduce picassos work load. If he was given clear direction guidance and regular checkins with Monet at the proper intervals. 

If I was the builder or the lender I would expect to be in the 10%-12% range. 

Being in at 85% in a second position makes me nervous. 

I wouldn't want to be in for over 80%, max. 

Running some rough calculations, after paying realtor fees, interest (maybe they are borrowing to make interest payments and it doesn't come into play in my rough calc). 

With a 15% spread doesn't seem like there is much profit for the builder, is the builder in trouble?

Hypothetical Scenario

300,000 sell

253,000 borrowed = 85% 

300,000 sell

-18,000 commissions @6%

-8,000 interest est 

-253,000 principle payback

-----_-------

21,000 profit

Sell for 10-15 k less than expected

:-( not much room for error, unless he is borrowing some of his "profit"