All Forum Posts by: Glenn Espinosa

You can't really base an average rehab time on the fact that it's a hoarder house.

The worst of the worst demo/trash outs, IMO, shouldn't take but a week long. But really this all depends on the sq ft and the condition of the house. <2,000 sq ft, simple layout construction = 1 week tops and I'd want to get it done faster.

And Gary Parker - That's a lot of dumpsters!! $8k plus just for demo to include dumpsters and labor?

Will hit it on the head with regards to how you can start and grow your business!

Brian Burke

Are my assumptions correct in that in order to successfully use the 80% rule you have to:

1) Be doing more volume, accept smaller profit margins
2) Buy materials in bulk for bigger discounts
3) Continuously roll crews to new projects therefore justifying a greater discount in labor
4) Find an agent willing to accept less of a cut (< 3%) in order to have the rights to all your listings
5) ???

Who told you that rule of thumb because around here you can't even do lipstick at $10/sq ft.

2500 sq ft is A LOT of house.

List is pie in the sky unless the other investor added some sq ft. Wait till it's sold before you kick yourself.

I did a stupid quick zillow ARV and got 559k so you were right at where I would have been also. Then again I have no idea about Cali pricing.

Sticking to your numbers should be celebrated, not frowned upon. As long as you're adjusting to the market and doing your math right, of course.

The real question is: When are you coming to my neck of the woods, Aaron?

Welcome to the party Sam!

I invest in Hampton Roads (mainly Norfolk) and it's great to see other guys from the area on BP.

I'm thinking about putting together a small real estate group to share ideas - would you and your mentor be interested?

Talk soon,

Glenn

I just think it's awesome to finish rereading Frank's book and then hopping on to BP and reading his recent posts also. Thanks BP!

Anyway, I think an important point to note, and J Scott delved into it already, is that you have to be able to analyze a property yourself and figure out how the seller is calculating his numbers and where there is potential for skewed figures. A lot of you analysis comes from the backstory regarding the property (and Joel offered a few great examples) and as an investor you have to be able to investigate that for yourself.

Beyond all that, you can come up with a baseline to gauge the property against others within the area. From there you can figure out the true value in a certain deal.

Congrats! Now you can justify even more the time you spend on BP, haha!

We're employing the add on strategy over here in Virginia. It works and a lot of new guys shy away from it since it can get pretty extensive. Everyone loves the lipsticks so there is less market for the small 2/1's with potential for add ons. Less competition means better opportunity to chip away at that $300k purchase price.

Make sure you budget for extra holding costs as you are bound to lose some time with permitting, inspections, etc.

Start talking to you planning department now and try to have the plans and permits squared away asap right after closing. We start consulting with our surveyor and architect as soon as we are are under contract and 100% sure we're gonna close.

1000sq ft is a lot. I assume you're adding a master with en suite. Don't skimp on the added master bathroom. Make that thing huge while you're at it and really blow away the competition.

Let us know how it goes.