All Forum Posts by: Dustin Miller

Thanks for the support, peeps!

@Lana McGrady I did quite a bit. New flooring throughout, 2 completely redone bathrooms, took down walls to open the place up a bit, new doors, fresh paint, some crown, lots of patching, light kitchen remodel that include granite tops and an island with concrete top, new dishwasher and range, new HVAC units, moved some electrical around, new garage door, some fresh landscaping, added a fire pit, and gave the porch a facelift with some new posts. I'm sure there's more, but that was just off the top of my head. My fiancé has the photos, so I don't have them to upload at this time.

Additionally, if anyone is able to share any kind of Standard Operating Procedures that may model something like this, that would be greatly appreciated!

Hey Guys,

Just wanted to share that I have officially completed my first flip! I did so by living in it as an owner occupant with a FHA loan. Started out with $3,000 and paid for the improvements over about two years with each paycheck. Purchase price was $93,900 with a $21,000 rehab. Property was sold for 169,900 in four days with no closing assistance! That left me with a profit of about $55,000, which has been dumped into the next investment! Many thanks to BP for tons of good information and advice!

Hey guys,

I am working with someone to help them create a business plan/infrastructure for a new business. The goal of the business is to touch every county across his state (if each county can be deemed profitable), but that will be tweaked as seen necessary. He wants to set this up to be quite large. The idea is to have five "Regional Managers" manage "x" amount of county employees (1-3 per county), where these employees will be the ones actually completing the flip. The county employees will be trained and expected to use his techniques to acquire properties, and the main investor will also be pumping them leads through the Regionals far before hitting the market because of his connections that he has built. He has enough capital to fund this, so that is not a worry. In summary, the supply and financials will be there. I know that seems wild and vague, but just roll with it for discussion's sake (he's built an incredible network I've never seen before).

In this business, the county employees will be taking no risk, but will have some very specific vetting. They will be given leads, given the necessary funds, and the property will be entirely under the main investor's name. They will have 0 financial risk. Once the flip is completed, they will split the profit with the main investor 50/50. The Regionals will be compensated 5% of the main investor's overall profit. Regionals will be mostly in place as mentors and supervisors, because the main investor's idea is to receive little-to-no phone calls once this is established and running well--it's a fun retirement plan and a personal goal.

Here's where I would like to reach out to BP: Does anyone have anything similar to this? Or know of something similar? As I am writing the procedural side to all of this, it is pretty extensive. I want to be sure I am hitting all of the right questions as far in advance as I can. Therefore, I would love to be able to talk to others that have done something along these lines and hear how they go through these processes and actual implementation. Furthermore, what most immediate issues do you foresee with this structure other than the tasks being carried through by the county employees and financials? The main investor has the necessary amount of funding in cash, therefore taking a ton of headaches out of funding this endeavor and going through lending on such a large scale. I know I've been vague with some of the details, but it would take quite some time to type up all of the specifics!

Thanks in advance for any feedback!

Hey guys,

I am working with someone to help them create a business plan/infrastructure for a new business. The goal of the business is to touch every county across his state (if each county can be deemed profitable), but that will be tweaked as seen necessary. He wants to set this up to be quite large. The idea is to have five "Regional Managers" manage "x" amount of county employees (1-3 per county), where these employees will be the ones actually completing the flip. The county employees will be trained and expected to use his techniques to acquire properties, and the main investor will also be pumping them leads through the Regionals far before hitting the market because of his connections that he has built. He has enough capital to fund this, so that is not a worry. In summary, the supply and financials will be there. I know that seems wild and vague, but just roll with it for discussion's sake (he's built an incredible network I've never seen before).

In this business, the county employees will be taking no risk, but will have some very specific vetting. They will be given leads, given the necessary funds, and the property will be entirely under the main investor's name. They will have 0 financial risk. Once the flip is completed, they will split the profit with the main investor 50/50. The Regionals will be compensated 5% of the main investor's overall profit. Regionals will be mostly in place as mentors and supervisors, because the main investor's idea is to receive little-to-no phone calls once this is established and running well--it's a fun retirement plan and a personal goal.

Here's where I would like to reach out to BP: Does anyone have anything similar to this? Or know of something similar? As I am writing the procedural side to all of this, it is pretty extensive. I want to be sure I am hitting all of the right questions as far in advance as I can. Therefore, I would love to be able to talk to others that have done something along these lines and hear how they go through these processes and actual implementation. Furthermore, what most immediate issues do you foresee with this structure other than the tasks being carried through by the county employees and financials? The main investor has the necessary amount of funding in cash, therefore taking a ton of headaches out of funding this endeavor and going through lending on such a large scale. I know I've been vague with some of the details, but it would take quite some time to type up all of the specifics!

Thanks in advance for any feedback!

Hey guys,

I have just got an offer on my first fix and flip! It was a full price offer that sold in Lexington, KY after throwing it up on Zillow as a FSBO. It was listed on Friday, and sold that following Monday for full, no closing costs requested! Needless to say, I'm pretty pumped. I chose to owner occupy this one and fix it up myself, as I only had about 3,000 to my name and have been finishing my Master's degree, while working full-time. Here is where my question develops:

I will have lived in the property for 19 months at closing. The reason my home was tossed on Zillow now is because I came across a property that was going under radar and was too great to pass up as my next owner occupancy (This will likely be my forever home and further invest with the equity I will be walking into). I needed to free up the capital to put the 20% down to make it happen (because my debt:income wasn't going to allow it to happen any other way in the timetable). I bought my initial property for 93,900 and put about 20,700 into improvements over time. This was all out of pocket as I lived there, so after receiving a signed offer for 169,900 and paying their 3% realtor fee, I will be looking at about 75,000 in my pocket after my mortgage payoff of 89,500. Counting my improvement costs, that'll leave me with a profit of about 55,000 on my first property. I'm right under the occupancy requirements of 2 out of the last 5 years to avoid full capital gains, but this other deal is too good to pass up. I know there are some partial exclusions I can work with, but I wanted to see where your all's feedback could guide me. Obviously, I'm wanting to hear that I can avoid taxes someway, somehow! Additionally, I am putting a down payment on this next property of 55,600; which will absorb my profit (my offer has been accepted and signed for the next property). 1031 comes to mind, but since I purchased as an owner occupant, I don't believe I can do that.

Thank you in advance for any feedback! I have reached out to many CPAs in my area, but you would be amazed at the variety of answers! It's baffles me! Any and all suggestions/insight welcomed.