All Forum Posts by: Edith TenBroek

@Simon Campbell Thanks for the analysis!  

I looked at a house today. It's a 1200 square foot classic rectangular ranch house.  Three beds, one bath, very simply one story layout.  It was built in the 1950's

The biggest problems are foundation work, new heating and cooling, and windows. The roof looks good, and hubby will do the windows.  The walls are straight and smooth.  The basement has a little moisture, but nothing a dehumidifier won't cure.  We might look into a sump pump. Vinyl siding needs a power wash.  Inside needs paint, flooring, paint the cabinets (real wood!) new counters.  We will gut the bathroom but it's small and only needs basic fixtures.  Electrical looks good.  Needs a full landscaping, but that's my passion.  I'm just itching to get my hands on that big yard!

It's in a small town very near us.  It will rent for 700 - 750.

I think if we are careful we can get it rent ready with a fixed foundation, new heater and air, windows, and all the cosmetics for around $30,000. Cosmetics and windows will be handled by us.  Furnace, air, foundation, and plumbing in the bathroom will be hired out. 

It has had no showings in 2 months.  It's been on the market for about 10 months.  The realtor said she would write ANY offer.  The sellers want it gone!   It has dropped in price from 50,000 to 20,000.  Do you think it would be too ballsy to offer 10,000 cash with an inspection contingency?  I think I can get the foundation guy in on our second walk through.  Might bring a contractor too, just to help identify other issues. But I want a full inspection if possible.  

They say if you aren't embarrassed by the offer, it's too high!

We had fleas in our own home once.  We used a flea fogger product.  We removed ourselves from the property for the weekend, set the foggers on all levels of the home, then came back three days later, opened all the windows and doors, and then proceeded to wash all our dishes (not required, but our paranoia).  It killed EVERYTHING!  We had no spiders, ants, or any type of bug for a good year.  Fleas never came back.

No, you can only buy properties owned by Fannie Mae that are eligible for the standard homepath mortgage.  You can find all the eligible properties at homepath.com.  Go to homepath.com, search for the area you are looking at, then select the homepath mortgage homes.  There is a checkbox that will let you select the ones eligible.  Hope this helps!

Thanks for the replies!  This is the type of discussion I was looking for!  I am leaning towards a 50/50 split because, as Wade said, we couldn't do this at all without his cash upfront.  

Yes, that's what I said! Each party will put in similar money (only estimates of course at this point) but we will be doing a lot of the work ourselves, and coordinating the reno.  

I guess the question I have then is what have others done?  

Hey all,

I have some questions about how you have structured partnerships on flips.  We have a friend who has the money to purchase the house.  We will fund the renovation through personal cash and renovation loans.  We (hubby and I) will do all the work.  Well, we will actually do a combination of work ourselves, and hiring contractors for the heavy jobs.  Friend is just a money partner.

What is a fair structure on this?  I don't think 50/50 is quite fair since we will be putting in similar money, but we will be doing the work.  We will all three own the house, so there is no risk for any one party on that front.

So now for my mini rant... before I posted this question I searched for other similar questions to see if it has already been answered.  What did I see over and over.... no real answers, but lots and lots of suggestions to seek a lawyer, be wary of partnerships, concern that friendships are broken up due to partnerships etc etc etc.  Lots of warnings, no answers.  To address this before the fact... yes we will see an attorney, a CPA, and have written partnership agreements and contracts before any house is actually purchased. 

So, anyone have an answer out there?  How would you structure this?  My thought so far are to offer straight up percentage on the money he puts in.  Alternatively, offer the friend a percentage of the final profits on the flip.

Our friend has already said he's interested and just need the details.  So what's fair in a deal like this?  Anything I'm not thinking of?

Hey all!

I'm getting ready to go view some houses. Some of the properties that were listed on homepath, and realtor.com as bank owned have now been scheduled for auction. Will they take conventional offers before the auction if it is already scheduled? I have no desire to bid and lose my chance at regular contingencies etc.

@Syed Firoz

he teaches one class a semester online, but he says he prefers the face to face. He truly enjoys his profession, but last semester he had 24 ECH and it was killer. He won't do that much again. I also teach online classes at the community college! Only one or two classes a semester, but it helps with the bills. Working from home is the only way to go! What do you teach Syed? I'm a Psych adjunct, and my hubby is a computer science prof.

@Brandon Turner

Awesome reason! DH wants to be there MORE than he is now. We get spoiled during the summer. He takes off completely and we play a lot. Then the transition back to the daily grind in the fall is hard. Do you or your wife also have a day job? How do you handle insurance etc.?

@Rachel H. That is definitely the plan! I want freedom!