All Forum Posts by: Derek Hutchison

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Thanks for the replies! I actually find working on the houses therapeutic. My W2 just is a Police Sergeant and it's nice to have the thing you're dealing withave such as a 2X4 or pice of tile not giving you grief at every turn. The timing wasn't the best for this deal as I value my free time much more in the summer than any other time of year. Ideally, next month is when I should start a DIY flip and have it ready to roll at the first of the year. The end game is to secure 2 multi unit rentals (18 total between the two and expandable) in the near future and try for 2-3 solid flips a year.  After a couple years of that, I plan to hang up the badge and gun and enjoy working at my leisure. I'm not looking for pockets of money as much as I am the flexibility to enjoy life on my terms.  

Thanks @Nick Britton. The deal I have now is purely based on exactly that. Known him for years and he knows I'll go cold and hungry before I ever miss a payment on anything.  

But like I said, he's fickle and odd. I'm sure I could rely on him for a reference at least for future endeavors. 

Thanks!  I lucked into a financing deal that hope I can continue. I got 100% purchase and reno costs for a flat 6% for 6 months so the interests for the extra 3 months on the flip is still less than labor would have been. I think the biggest thing is not riding my Harley once this year and only getting to the lake twice. That's just an unacceptable summer to me ha ha. 

I'm on the tail end of a flip right now that should net me about $25k from a $100k investment. I work a full time job and am doing all the work on my off days and in between 12 hour shifts. This wasn't my original plan, but my contractor ended up in jail for child support (again). I looked for a reputable replacement without any luck so I decided to tackle it myself aside from HVAC and the roof. I've saved a ton of money, but my summer was consumed by the house and it's taken twice as long as I originally planned for the reno. I wanted a 90 day flip and I'll most likely be 6 months instead.

My question is this; Am I better off maximizing my profit at the expense of a longer flip, or is the quick turn/less profit the better route? I've enjoyed working on the house, but I'll admit, I'd like to actually have a day off soon. I also missed out on an excellent flip last week because this one isn't done yet. Our market isn't seasonal like it used to be. Houses are bought and sold regularly year round so I'm not worried about the old philosophy of not having anything on the market outside of April to September from days gone by. Either way, it's almost done. More net profit on this one will be nice, but had it already been done, I'd have been able to but the one I missed out on which would have made another $25k-$30k net. I suppose I'm also looking for reassurance that the lost summer fun of 2015 will be worth it in the long run. Thanks for reading! 

I started dabbling in real estate several years back with good success but bought another business and got out of the game for a while.  The bubble burst in between then and now so I'm not sure how relevant those deals are. I've recently got back into it and am currently doing a flip for an awesome deal (in my opinion anyway) at 100% (purchase and reno) at a flat 6% for 6 months. Absolutely nothing out of pocket. Usually that type of deal is at least 10% around here, which I would be OK with if the numbers worked, and not likely to be 100% funding across the board.

All that said, my lender is simply a fickle, old miser (self made) and you never know whether he will be in or out on a deal no matter how solid it is. Just depends on his mood that day. As you all know in this game, that won't cut it. I need a lender I know I can call and make things happen if all the criteria is there and need to move on a property quickly. Private lenders all want a track record, which is understandable. My question to those of you in the lending business is; how many flips or rentals is enough to establish a track record? 1, 2, 10, 20? Do the ones I did 10-15 years ago still count? No one can seem to give me an answer and I'm aware it will vary from person to person. Just trying to get a feel for what's reasonable. I'll net about $25k off my current flip ($100K)  and am ready to get started on another as soon as this one is sold but I have no idea whether my guy will still be on board after he get his investment plus interest back. I'd hate to be a one hit wonder on my return to business.

I actually just witnessed this similar situation last week. A friend of mine owns a well drilling business and got a call while we were at lunch. The site was on our way back so I went with him. We were in his 2 or so year old Land Rover. When we got out, the customer said, "oh, I cant afford you if you're driving that". You'd have to know my friend to appreciate his response but it was pretty blunt. Without hesitation he tells the guy, "I'm the largest driller in the area. I make my money from volume, not one customer. Furthermore, if I drove up in a piece of s**t truck, then you would think I was a crook. Now that that's settled, where were you hoping to drill on the lot?" It was all I could do to keep from laughing but he was right. There's pros and cons to the truck you have and the cars you're considering. I grew up in the car business and feel like you should consider a point no one else has mentioned. An older luxury car may be what you want and in an affordable purchase price range, but you seriously need to consider the age, mileage, and service history. Also, Autocheck is far more accurate than CarFax if you look at those as well.  That $10K E Class with 120K miles on it might in your budget but can you afford the repairs when it breaks down, which I promise you, it will. Maybe not major, but something will break and won't be cheap to fix on a Mercedes, BMW, etc. My suggestion would be as most others, get a few deals done and save some money first. Then try your best to not look at your purchase through a 20 year old mindset. Fast cars are fun, but not practical. You can buy one of those later (and maybe live longer). Luxury cars are nice, but not economical to maintain. I'd go with something middle of the road, dependable, and relatively common maintenance wise. Unless you do it yourself, you could be looking at $100 or more difference in price for an oil change between, say a Honda Accord and an E Class or 5 Series.   Good luck!

Great job, I love it! 

I had been pondering on getting back into real estate investing and wanted to start with a flip to get some cash built up.  I mentioned this to a realtor friend of mine in passing and told him to keep his eyes open. It was really just a conversation in my mind that had no significance. Less than 30 days later I closed on this jewel.  

https://www.dropbox.com/s/5c0q5gmre2guba5/IMG_2015...

I was very fortunate on how it all worked out. I ended up with 100% private financing for the house and repairs at a flat 6% for 6 months.  Other than the roof and HVAC, I've done all the work myself and occasionally the help of a co-worker here and there. 

I paid $66,500 and change after closing costs and plan on asking $134,900 when I list it. According to all my research and the realtors I've spoken to, it should be an easy sell in the $130K range. I will be into it for about $95K when I'm done.

I'm not sure if this is the proper forum to pose the question, but I'll ask anyway and take my lumps if I am wrong.  I work a full time job and am doing all the work on my off days and in between 12 hour shifts. This wasn't my original plan, but my contractor ended up in jail for child support (again). I looked for a reputable replacement without any luck so I decided to tackle it myself.  I've saved a ton of money, but my summer was consumed by the house and it's taken much longer than I originally planned for the reno.  

My question is this; Am I better off maximizing my profit at the expense of a longer flip, or is the quick turn/less profit the better route?  I've enjoyed working on the house, but I'll admit, I'd like to actually have a day off soon. I also missed out on an excellent flip last week because this one isn't done yet. Our market isn't seasonal like it used to be. Houses are bought and sold regularly year round so I'm not worried about the old philosophy of not having anything on the market outside of April to September like it used to be in our area. Either way, it's almost done. I'm farther along than the photo album shows. (I'll update it soon). I suppose I'm mostly looking for reassurance that the lost summer of 2015 will be worth it in the long run.  Thanks for reading!