All Forum Posts by: Chris Ferren

I'm current preparing for my first flip, and I'm getting all my ducks in a row before I do so. I'm working with a partner, and I'm planning on starting to make our first offers in about 90 days. Before we do so, I need to set up an LLC, consult with a CPA, and get all our financing prepared. My question is this...

How does one make offers on property without having a real estate license? By using an agent, you need to rely on them to do everything. They have to take you to the property so you can look at it and evaluate the deal and see how much money it will take to fix everything up. Most real estate agents will not waste their time bringing you to 15 different REO properties so you can write offers where you may not even get one accepted.

To follow up on this, even once I get my real estate license, it seems like a lot of spent time going to each and every house and evaluate every one to write an offer. Do any investors just write offers without looking and visiting the property? How does everyone else write offers? I've read blogs where people say they write 20 offers or so before one gets accepted. Are you visiting all these houses first and do a rough analysis?

Any time saving tips to be more efficient would be great when it comes to writing offers. Thanks

Chris FC

Hi Kendra,

I came across your post about the 3bedroom 2.5 bathroom rehab and flip you did awhile back. I'm a new Sacramento investor. My business partner and I just bought our first renal 3b/1ba in the 95823 zip code. We got it for $8k, which I think is an ok deal for our first purchase. I think next time we will do it a little differently and hopefully get a better deal. It's a good start though!

Anyway, back to the reason I'm messaging you. I read your post and it looks like you did a great flip for your first rehab. I was wondering if you could share some information with me as the next place we buy, we would like to do a rehab/flip. It seems like the south sac areas: 95822, 98823 have a lot of REO's, and the comps in those areas all seem to be those. What zip code did you buy in? Have you purchased and started any new projects? How long did the project take? Any help you could give me regarding what zip code and neighborhood you recommend would be awesome. We are thinking about doing an all cash offer on our next property, we just need to find it. The Sacramento rehab market just scares me a bit, because it seems like I'm having a difficult time locating properties I can rehab and then mark back up to a profitable and less risky after rehab sales price.

Again, not to pry too much, but I'm really excited about getting my RE license, buying our first rehab, and networking with some local Sacramento investors. Thanks!

Chris Ferren

Good Evening All,

So I live is Sacramento, CA and there is a few different zip codes that I have been looking at investing in. This would be for a rehab and flip. The problem is this: Sacramento was especially hit hard by the housing recession. It seems like these SFR that I'm looking at are valued at 1/3 of what they used to be 5 years ago, and it seems like nearly all the homes being sold are REO's. Sacramento also has a high unemployment rate, I think around 14%.

When looking at Comps for a potential deal on a rehab, do you look at other REO's or FSBO sales? Are these two valued any differently? I've been looking and comparing the avergage/sq foot price sold, and it really seems like the REO's flood the market for these zip codes. Should I be looking at a different area? If I can still find deals in these areas, how do you run Comps in areas like this?

Thanks for the help! I've been studying the market now here for a bit, and would like to finally make a move in the next few months. I have the funds, but I want to make sure I'm well prepared when I finally take the plunge. Thanks

CFC

Hey All,

I've been lurking on this board now for a few weeks, and this is my first post. I'm pretty new to real estate. I bought an REO about 18 months ago that is my primary residence, and I'm currently in the process of buying my first rental with my business partner. Ive learned a lot of helpful info on here, like the 50% rule, and I think we have a pretty good ROI. It will make a great rental.

However.... my problem is this.

I've been actively looking for homes through my agents MLS she signed me up for (however I don't think this is the real MLS) as well as looking in Fannie Mae Home Path site. I would really like our next purchase to be a rehab and flip, however I can't seem to find any that would be profitable flip. I've been following the 123flip.com site by J Scott and I've gone through every post from the first property through the 6th one so far. However, I can't seem to find these type of deals on homes.

J Scott, other investors, flippers... I need some advise. Perhaps the Sacramento market is substantially different than Atlanta area and other areas for flips. Can't seem to find deals for good rehabs, and it's a bit frustrating. Any words of wisdom?

I appreciate all your responses and I look forward to learning and discussing deals. Thanks.

Sac Investor