All Forum Posts by: Dustin Mellor

This topic is the interesting as a newb who has been studying REI and networking for several months and wanting to do some deals finally. From what I've read/listened to it seems like flipping can be done in any market as you are buying below market, fixing, and selling at market price. It seems that as long as you buy right then someone will fund it and someone will buy it. Finding properties in today's market seems to be the difficult part. It reminds of me of deciding when to have my first kid. I wanted to wait until I was done with my MBA but,as wife pointed out, there is never a perfect time for anything. If you wait for a perfect time to buy, you will have a hard time selling. If you wait for a perfect time to sell, you will have a hard time buying. As long as you have conservative criteria (and stick to it) and don't get in over your head (have sufficient cash reserves/multiple exit strategies), and fix it as fast as humanly possible, then I don't think there is any reason not to keep flipping.

For experienced investors: am I in the ballpark on this? or does everyone in the industry close their doors and get 9-5 jobs when the market peaks?

My wife was apprehensive initially. I proposed she help me with the businesses and she didn't want to at first. I kept at it myself and made it clear that I was not just 'kicking the tires' and eventually she became more interested. Now she is fully on board and we have talked about her getting her RE license and maybe having a side business in interior design or staging. I think the three most important pieces are demonstrating how important it is to you, showing that you are serious and are taking active measures to be successful, and possibly tying it into your spouses interests somehow. He may not understand RE investing but maybe there is some benefit for him that would get him on board. Good luck!

Got it. Thanks!

Looking for some guidance on bringing deals to experienced investors. How far along in the process would you expect someone to be before approaching you with a potential deal? Should the price be negotiated and P&S agreement signed? Should I have contractor estimates ahead of time? Or just a general idea of the SOW and/or rehab estimate?

I'm looking to partner with investors experienced with the house flipping process near Portland, Oregon. Happy to put in as much of the work necessary but I not sure how far along in the process experienced investors would like to see before they are willing to look at a deal.

PM me if interested. Thanks!

I believe so. I am applying for a HELOC through Umpqua currently and the loan up to 80% LTV.

@Rocky Griffin i agree. Seems like everyone I know is getting an MBA these days. I think it's only really necessary if you want a corporate senior management position. That being said, I really liked the material. I could have bought and read the books for far less money though. It comes down to how important is it to you and is it needed to get where you want to go. Also, can you get your employer to pay for it ;)

If you're goal is to get into real estate I don't think it's worth it. I just finished mine but had 1/4 of the courses waived because it was concentrated in project management and I'm already PMP certified. Also I was able to convince my employer to help with about 2/3 of the remaining classes. When I started I was really focused on the the corporate ladder. The MBA combined with the books 'rich dad pour dad' and 'four hour work week' flipped a switch in my mind and I'm now hell bent on being an entrepreneur in real estate. It was a great education but I would never pay 50 to 120k out of pocket for it. Start reading business books and leverage you skills and network to land your syndicator job and you will learn much more. Experience trumps degrees every day.

Ya it's not sounding like a deal. Just thought I might be overthinking it but I think it's a pass. 

I looked at a foreclosure this week that had no foundation under the addition. Just posts on cinder blocks, which I'm assuming is not to code unless you're building a shed! The bank was asking 108k and the ARV looks to be 120k. I was hoping to get all in including reno and holding cost for 100k but the foundation issue makes that pretty difficult. That coupled with the fact they they sawed one wall in half to fit a larger refrigerator and the roof is sagging. My reno budget was 17k and I'm paying cash so no holding costs.

1. I've read that banks may take as little as 75% of the asking price if there isn't much competition. Is that correct? 
2. Anyone ever added a foundation under an existing structure? Is that costly? The building is a very simple one story 3 bd/1bth otherwise in decent shape. 

Thanks!

Dustin 

Excellent post! I'm looking for my first deal currently so this is helpful. The Portland market is very expensive/competitive so I'm looking in other areas of Oregon that I know well. Looking forward to see your results for flip #2!