All Forum Posts by: Matt Stewart

Hello, I'm Matt.  I've been around for a few years, but haven't been more than sporadically involved up to this point.  I'm a fix and flip guy and have over 40 flips to my name since I started in 2007.  I'm here looking to network with other fix and flip guys/gals as well as wholesalers and explore funding options.  

I've sold a few houses with bowing walls in the basements.  In some, beams have already been added, in another one I paid a company to install the beams.  I purchase the beams and all materials myself and hire out the labor.  I disclosed what was done(if I had it done) and I've never had a problem selling.  The buyers I've had seem satisfied that the issue has been addressed properly.

I used to walk away from a property with structural issues.  Now that I know how to handle the issue and I'm comfortable that I'll be able to resell I'm actually looking for them.

I use a flat fee listing service to get my properties on the mls. Had one odd ball last year that lasted 45 days on market, but generally under 30 days til I accept an offer. The last 5 properties were less than a week on the market until I accepted an offer, with multiple offers on 3 of them.

My profit ranges from 18-22%

Every market is different and every business model is different, but in my case it would be a waste of 3% profit to use a listing agent.

I've had a shed twice that size demo'd and hauled away for $100 cash. Posted it on craigslist gigs section with pics. These guys took it down with a hammer and then told me they'd burn it back at their place. I hope they lived outside the city limits but I didn't ask. It's amazing what some people will do for some cash these days. Just don't pay until the job is done.

Good to know Albert. I plan to make it very clear to the lender that due the appraiser they repeatedly use I will not be accepting offers from buyers that use them as a lender. The market is strong enough here now where I'm getting multiple offers on every listing so I will be afforded that luxury. Perhaps if the lender gets enough feedback like that then they can instigate a change.

Interesting....I've sold three properties using this particular lender, and each time I've had to deal with this same appraiser. I just assumed that the lender had the option to select the appraiser they used.

Thank you for those answers. I think that answers my questions.

As far as the repairs, I've always had the appraiser come through after the home inspection is done and any issues raised by the home inspector were remedied. This particular appraiser is then coming through and finding additional issues that were not noted in the home inspection. While some of her issues are legit, others such as removing an entire tree that lost a limb but was still very much alive, replacing an expansion joint at the end of the concrete driveway, and requiring an electrical certification even after permits and inspection took place are subjective at best. I've heard from others that she if very anti flipper so she'll come up with numerous expensive repairs to lessen any profit that you'll make from the sale. And she knows she's got all the power at that point. I've not had any problems with other appraisers, so I guess my best option is to no longer agree to work with this particular lender that uses her as an appraiser.

I've been flipping single family homes for a several years now and just like everywhere else the biggest challenge is getting the property to appraise. I've been "screwed" a few times by appraisers coming in way low on value. But worse than that I've run across one in particular who is very very anti flipper and always seems to come in with a bunch of ridiculous and expensive repairs that have to be done before she'll approve the value.

I know any FHA appraisal will stick with the house for six months so even if another buyer is found with another lender the new lender must use the original appraisal. So I'm considering ordering, and paying for an FHA appraisal myself. The obvious advantages to doing this are knowing the value before the property is listed, and also repairing any issues that the appraiser might find well ahead of time.

So my questions are, has anyone gone this route before and how did it work out? Can I require the lender to then pay me for the appraisal to recoup my expense?