All Forum Posts by: Evan Spicer

Ophelia, I think a lot of intent can get lost in text sometime. I am not arrogant I am extremely grateful to have an investor. I am confident and there were many people on here saying things like I don't deserve a thrid of profit and things like that so I was being defensive. My investor came to me with this idea, I have worked for him five times(all large project, office building, complete home remodel, add on 5 car garage with loft above etc.). Me saying I will call him in 3-5 months is not me being arrogant or a fool or doing that because I'm above keeping in contact with him, it's respecting his wishes and his time. My investor owns four different companies already. Not calling him for every little thing is exactly what he wants. As I've said repeatedly he doesn't want to just find a gc to flip houses with, he wants to invest with me and not have to deal with it and hopefully we all make some money. I don't see the need to call people a fool or arrogant that I've never met on an internet chat board. We're all here to gain knowledge or share it and thank you all for your input. I just had a couple questions before my formal meeting to devise a concrete business plan. Sorry to be so offensive...

John why are you offended that I am getting a good deal?

I appreciate the input John, you were quite frank. Should I go to my investor and tell him to take more of the profit? Didn't think so. My money guy trusts me and likes me. I simply came here to ask others who have experience in the matter a little help with the grey areas such as the painting myself vs hiring out and skilled time consuming tasks. I didn't think I should be chastised for asking some questions and being proud of my abilities. If you read through the thread some people said I should do all the tasks and be a team player, others said to hire the labor out and keep the projects moving, and some people are offended by the questions and thoughts I had which I don't understand. Was I impolite? My money guy doesn't want to flip houses himself to make money, he wants to invest in me and my other partner because he believes in us and trusts us and he knows he can make a little money on the side without dealing with it much, his time is very valuable. We may spend 20 minutes one month taking his time by calling him, explaining the property and the potential and telling him the amount we need to buy and renovate. If it goes as planned we will call him back in 3-5 months to tell him what his return was, we may have other projects going or we may not. Is he taking a financial risk? Sure more than we are but he isn't risking time. My partner and I are valuable time wise as well we just simply not established yet. Cheers.

Thank you all for your replys so far! To those of you that said my money man isn't getting a good deal, I am the one who is building the team, I will deal with all billing/accounting/etc. The money guy doesn't so much need the income he does extremely well already, he just figures if he can get a $20,000 return on $160,000 every 6 months that is better than a bank or most investments will do. We won't lose money because we are smart enough to not let that happen. We are buying homes only In highly sought after areas and we are only buying homes that are well below market and I will be making sure they don't have hidden expensive problems. I'm also the one who is insuring these properties with both my contractors insurance and I will open homeowners poilcies on them as well. If a fire or a huge oak tree falls, we will be covered that's our biggest risk.

Hello, I'm Evan and I'm starting a house flipping/real estate business along with two other guys. We each bring a specific skill set to the table. I am a 27 year old general contractor, I can do anything in a house and my quality is good or better for everything. My friend Austin is a 28 year old realtor who is very good at his job, and also very eager to be successful, he is partner number two. The third partner, Mark is a very well established businessman who owns multiple companies, I've worked for him on his own house and he is a great guy and very trustworthy, he is the investor. Our model is for Austin to locate below market properties in high value areas of town, to purchase them, to help me decide what updates need done, and to sell the properties. He will recieve 1/3rd of profit for this. Mark will provide the money to buy the property, he will pay the bills, and buy the material while we own the property. He will recieve 1/3rd the profit for this. I am the contractor so I will assist Austin in finding properties that can be renovated affordably (making sure roof/ foundation etc are not in need of repair). I will perform the repairs or hire Subs to do so, I will recieve 1/3rd profit for this.

So an example of how the numbers could break down is we buy a foreclosed house for $150,000. We put $10,000 in repairs in the home and we sell the home for $220,000. Our profit is $60,000 so we split it and get $20,000 each. (This is very optimistic I know.). We will form an Llc prior to first property purchase. Austin will need to be on the note so he can buy and sell the house without the company he is a realtor for taking a commission, he will recieve 1/3rd of profits but no additional commision.

The hard part for me is that both of thier parts are very cut and dry, one is a realtor, the other is the money man. But as the contractor, it's harder. I am able to do anything but that doesn't mean I want to, for instance I could hire a granite company to install in kitchen for let's say $5000. Or I could buy prefab blanks (I know how and have the tools to fab granite) and could get it in for $3000. So I just saved us $2000 but I did so by busting my rump for 1.5 days. Essentally we all three netted $666 for me to do the work, this is the grey area I'm trying to figure out. In your opinion should I be rewarded for additional labor or docked for hiring things out? I don't lay carpet so that will always be subbed, but I can paint, but would rather hire a crew to just do it. Just trying to figure out the grey areas.

Thank you for your help! Any snd all input is appreciated!