All Forum Posts by: Don Hines

Wowzers. I will try not to squash your enthusiasm here. Start off by trying to put a cost on your projects. go to Home Depot / Lowes with a list in hand and try to cost out all of the cosmetic repair material you will need. They will have the AC units you mentioned too. If you are determined to do the projects yourself, I would budget a year for holding cost; maybe 6 months if you are not employed (taxes, utilities, interest, etc). Figure out what you may pay any labor or contractors. Study the comps in the area and determine what a rehabbed house will sell for. Be honest with yourself here. Yours might be the prettiest and best when you are done. That don't mean it will sell for more than your neighbors. Subtract all of your cost and your desired profit from a sales guestimate. Then you should be in the ball park of what to pay for the house. Do not pay more than you should!!!!!

Don

@ Michael W

@Michael Woodward touched on the family and marriage aspect. My first flip just about split us up. we went way over budget, overdid it and lost. it took us two years to recover enough to try again. The second went much better and we made a little. Be sure your relationship is strong just as much as you have made sure you have a good deal.

Don

I am exploring notes too. So, I am in no way intending to be a @Bill G here. I think you are getting ownership confused. You are not buying the property. You are buying the mortgage. You are looking at only a 10% discount. Plus I would think all of the "goody" is gone from this note and you would probably have more principle than interest left.

Did I get it right Bill?

Don

Some might consider me lucky. Right now, I do not have any REI going on. But, I am more interested in the note business than land lording or flipping. I would like to retire (change carreers) in a few years. I think starting investing in notes now will support my wife. She wouldn't think very highly of me if she missed any of my paychecks.

So, tell us how you started in notes. @Bill Gulley sez to start in my own back yard. What do you do?

Don

I bought my first flip from BNY Mellon through a realator. I thought that made us buddies. I thought wrong.

Don

Thanks @Jon Holdman. You have made me learn something today. I finally had enough sense to look on you tube (I require pictures).  You and @Bill Gulley should be on the payroll around here.

thanks

Don

@Jon Holdman

I loved your post here. But, it is driving me nuts. I found the functions you have mentioned. but, I am a goat looking at a wrist watch. I don't even know what to ask. Can you make it a little simpler on how you used them. Are they linked to another cell? How do you use them?

Thanks

Don

This story happened a few years ago. So, I don't know if it was the same primer.....

I had a bath that had wall paper in it. When the paper was removed there was plenty of gouges into and in many spots past the paper in the drywall. (Wife and grandkids; cheap labor). after many evenings of trying to use drywall mud and making new blisters in the paper, someone her on BP told me to prime the blemishes first then make the repairs. I used Kiltz with the blue label as suggested. If I'd had done that first, it would have saved me about 3 weeks of my life.  

don

The absolute thing that could happen is you could wind up in divorce court. Make sure you and your husband agree with everything. More than likely you will be managing the project. Be up front with him on everything.

Don't try to do all of the rehab yourself. You want to be in the finding and selling business. Not swinging the hammer. You can tie up a year or more of your life trying to do everything after work and on weekends.

Don

No. You will not be prepared to "go it alone" if you do not already know the business. My interest was in the NPN side of the business. Actually, the class taught me that is not for me. I believe too many people are on the bandwagon and the better notes are taken quickly. Plus, this is a business that you cannot keep in your own backyard. If I end up with a property, I wouldn't be comfortable with someone in Ohio managing it for me. I need to be able to drive by every once in a while.