All Forum Posts by: Eric Johnson

Check your biggest pool of buyers. Make sure your ARV lands in the biggest pool of buyers so you have the highest chance of exiting your project, efficiently and effectively. Don't buy a property and when it's done 90% of the people in the area can't afford it.

@Garrett Rockholt I second the recommendations of getting an operating agreement drawn up. Two green people going into real estate together, there’s no telling what can happen. People you think you trust do things that end with you getting screwed in 5 different ways. Seriously be careful, no matter if it’s your childhood friend. It doesn’t matter... business is business. Also, besides reading books, have you done active studying within your market? Have done the 100 house rule that J. Scott suggests? This is visiting 100 fixer and open house in your market and you analyze the rehabs, ARV , scope of work, possible acquisition etc. Before I ever did a flip with my mentor, I looked at so many houses I lost track.. and also online you can do the same analysis by using Redfin and trying to jot down scope of works from pictures. If you guys need help with fInancing Im a loan broker In LA and specialize In fInancIng for entrepreneurs and real estate Investors, we have HMLs in our database that will lend up to 90% of acquisition and 100% of constructIon on holdback or Id be down for just a phone call If I can provIde any more value for you thanks! -Eric

@Sean Shapoori I would use a part of your income from your job to start doing some direct marketing and talking to sellers. That's how you get the best deals, and a better purchase is more likely to end up in profits on your end.

Also, go to networking events and start connecting with other investors in the local market. You want to know what the end buyers in your market favor so you can add the most value (and thus margin) to your flip as possible. Do not skip that step. Have you reversed engineered other flip deals that have sold in your market??? I recommend going on redfin, looking at sold properties for the last year and analyze each property that was a flip and look at the type of house and everything about it. This will give you a better understanding of what is being flipped in your area(s).

@Ashley Olivera Connect with other real estate investors in your market and start asking for referrals. Let them know you plan on breaking into the local investing scene and would like the numbers of some good people, most will gladly give you numbers for attorneys or real estate brokerage recommendations etc. 

How well do you know your market? Have you studied what these properties sell for, have you studied on how to estimate ballpark rehab costs? These are incredibly important questions. You need to know exactly what the duplex will be worth after you fix it, what it will rent for etc etc. You should know deals like the back of your hand.

@Jeff Nobert I second all of the replies here, make sure you have EVERYTHING IN AN AGREEMENT AND THIS AGREEMENT IS REVIEWED BY A REAL ESTATE/BUSINESS ATTORNEY.

I have personal experience with **** hitting the fan with partners and as such I take extra extra extra caution when dealing with other people now.

@David DePrey I agree, networking is super important, especially if you can offer a good amount of value, whether that be time, experience, or capital to a potential opportunity. Worse case scenario, you hear some interesting stories and learn a thing or two!

@Jared Baker to figure out ANY market, you need to always work backwards. IE what is selling in that area?? If you don't know what sells, how can you know what to buy for a flip? It's impossible. Go on Redfin or Zillow and look back 1 year and find all of the flipped properties. These are easy to tell because they are usually staged, with pro photographs, and are all brand new (also just look at the sold history and you will see 3-4 months between the purchase and listing). 

Analyze those flipped properties on what style of house they were, how many square feet, the bed/bath orientation, floor plan (if possible, flow is always important to a good house), what LEVEL OF FINISHES (this is super important), and the lots... hope that helps!

@Jared Baker to figure out ANY market, you need to always work backwards. IE what is selling in that area?? If you don't know what sells, how can you know what to buy for a flip? It's impossible. Go on Redfin or Zillow and look back 1 year and find all of the flipped properties. These are easy to tell because they are usually staged, with pro photographs, and are all brand new (also just look at the sold history and you will see 3-4 months between the purchase and listing). 

Analyze those flipped properties on what style of house they were, how many square feet, the bed/bath orientation, floor plan (if possible, flow is always important to a good house), what LEVEL OF FINISHES (this is super important), and the lots... hope that helps!

Swiss Coffee or egg-shell. These are off-white that give a room a clean, modern, and larger look. If the owner wants to paint the walls purple after they buy, then they can have fun.

@Bryan Clement It's hard to say if you will find it valuable because we don't know what level of research you've done to improve your knowledge. 

Have you been networking with local investors and learning from all sorts of people within your market? Talking to agents and brokers etc.?

That may be way more valuable to you now than to get into a flip deal and then rely on a program (not saying it's not good, but I think you understand my point).