All Forum Posts by: Eddie Egelston

This is the cringiest post I think I've ever seen on this site. Most replies are a wreck. Let's start to fix it:

@Lisa Leary I hate to answer a question with a question, but why do you think it will be any different than any other wholesale? What do you think would change with an agent involved? A buyer pays the seller money for their property, and the seller is contractually required to give a % to their agent. 

@Jon Schoeller same question to you, why do you think the agent needs to be removed? My listing agreement has a "protection period" which will not allow you to end your relationship with your agent and then sell to someone else the next day. I assume these are fairly standard. 

@Oliver Perry As another has said, probably illegal or it should be. NO. Just... no.

@Lenny Marquez what state are you in??? I'll get my license there this weekend, just hold on! We are agreed on 12% listing fee yeah? LOL

@Austin Ghassan the co-brokering fee is the commission promised to the buyer's agent. As an example if the seller is paying a 6% commission, 3% is going to their agent, and the other 3% is going to the agent that represents the buyer. Of course that would be giving it away, right Lenny? haha!

I upvoted for those who added some sense to this conversation  :)

Not sure if I am following correctly, or if I simply disagree...

First of all the price range should probably be removed if you did talk to "investors both far and wide". $1.5M or even half of that simply does not exist in my market and many others. Simply showing ARV with the arrow should apply the same ideas.

The blue line I assume is "quantity of buyers" and not "quality of buyers"? Either way, it's doesn't really matter. On any given flip you are looking for 1 buyer, and you want to sell to that buyer for top dollar. Quality and quantity does not significantly affect the equation.

Regarding the red line of ROI, I'm not sure why it would vary so much between the top and bottom of the price spectrum. I would think investors would want that to be a lot more consistent, and an efficient market for fixer uppers would reflect that.

Regarding the gray lines of intersection, not sure if they are just poorly illustrated or unrealistic. Why wouldn't I move past the $1.5M houses and into the $1.8M houses if I'm going to make an extra 10% ROI as this reads? $H!T that's $30,000 difference right there. Are you saying at that level you are "shooting for the moon" too much and may miss because there are so few suckers buyers up there and it's a finicky market? Probably true but the chart shows a solids 30% ROI which is either there or it ain't. And applying this concept to the left aka cheap end of the chart... I can't even fathom how it's logical.

https://www.houseflippingspreadsheet.com/

Last time I did an extensive search for one, this was by far the best, and put all others to shame.

Write about the communists that run California and their new rent controls.

I don't want to put words in your mouth, but I would argue that they are filthy communists who know nothing of free markets, who want to bully the minority (property owners) to gain the votes of the majority (tenants). The communists would rather put the burden of affordable housing on the backs of property owners, than work on solutions that increase supply to meet the increase in demand.

Like typical Communists they are only fooling their constituents and the dumbest of themselves to believe that 5% increase in rent + inflation rate, capped at 10% is actually a rent control. Anything larger than that is unsustainable anyway even for California standards.

Therefore their political posturing is simply that, while setting the stage for later communist solutions to free market issues.

But again, I don't want to put words in your mouth.

I see Jacksonville, Illinois has several colleges. Can you turn your large house into student housing? I saw this video saying it is a great idea! 

https://www.youtube.com/watch?v=wyooI5J91UM

Also as an experienced agent I'm not a fan of many of the 'solutions' that have been suggested here. Taking the house off the market for "slow" season is not going to help you sell your house. In fact you are going to help sell other people's houses by giving buyers fewer choices. I personally sold my flip on the eve of Thanksgiving last year. (I had 3-4 offers in Novemeber.)

Marketing to companies relocating people is such a joke. If someone is seriously getting relocated to an area, they are already looking on Zillow, or working with an agent. To think you have to reach out to these companies / buyers is a farce.

I personally had clients not hire me to list their flip because their margin was too thin. They went FSBO / flat fee, which would save them about 1% assuming they still had to pay buyer's agent. About 4 months later they sold for surprisingly less than I thought they would have. The holding costs alone would have paid for my services; let alone the potentially lower sales price and opportunity cost of their flipping bankroll. Sadly they are my latest example of why you don't go with low-service brokerage and cell phone pics online.

Fair enough! There's value in that too!

 There are private / hard money lenders that will do a joint venture with you. Therefore you are truly making a cash offer. There needs to be a lot of meat on the bone for that arrangement.

You should know why the seller wants a cash offer. Do they think or know that no traditional bank will touch it? Private money shouldn't have an issue. Does the seller only want to deal with true cash buyers? Then private money might not work.

 Why limit yourself in that way? If the current landlord doesn't run a tight enough ship to have a presentable property and a cooperative tenant, then it's on them. Write an offer and use the due diligence period to first visually inspect and then, if it's worth it, have a professional inspect. You tying up the property does no harm to you. If everyone had your attitude, that would leave a lot of hidden gems on the market for people willing to take the extra step.

@Michael L. the reason I replied to your thread is that you and I do think alike; in the past I had created a list of "intangibles" that I would score two or more properties on, as a tie breaker of which to offer on first.

My list, in no particular order is: market time, age of big ticket items i.e. roof & windows & hvac, neighborhood, schools, view, curb appeal, potential, floorplan, owner's benefits (size of master suite, common areas), and "gut feeling".

I never actually used the list. I have those things running through my head anyway; to try to quantify it all seemed too subjective to me.

I have been a part of 7 flips to date; as a broker and /or owner. I have walked through a lot of REO's that me or my clients did not buy, but other investors did buy and flip. In looking back on all of those, and comparing my notes at the time versus what happened to the houses after someone else bought them, the most obvious theme I observed was that the worst thing you can do is under-improve.

I observed many houses resell for more than I ever imagined. Those houses were flipped by people that went "all in" and really "created" something above and beyond the typical flip. The properties I observed that did not sell for as much as I anticipated all had one thing in common. The flipper went too cheap in remodeling. They took the lowest bid on labor and it showed. Or they chose not to remodel a bathroom that was "good enough". Or they did not make some of the simpler repairs after gut remodeling everything else.