All Forum Posts by: Matt Stewart

Paint the fascia, install shutters, install a black porch light over the garage door, build a small retaining wall to left of the front porch for landscaping, paint the vent over the front porch, replace the wood balusters on the porch to black aluminum....anything to give it some contrast and break up the white.

@Eric Thielsen  What Nate said is exactly right.   I manage anywhere from 6-10 projects in the Columbus area at any one time and what I value most is someone who can save me time.  That can be anything from analyzing deals to moving a load of topsoil.  Feel free to reach out.  I'm happy to help out if I can.

@Dave Godfrey  I can tell you how I do it.

I put together a line item rehab budget. labor and materials so any overages can be tracked. Once a week I reconcile all rehab expenses into a spreadsheet, which is sent to the JV partner along with any receipts, invoices, photos, and a general update of the project. Most of the JV partners I work with are from out of state, so they rely on me to keep them well updated. Any surprises in the rehab (there's always something unexpected that comes up) are discussed and adjustments to the budget are made.

It's important to have a JV agreement or some type of documentation that clarifies the responsibilities of each party and how profits are to be split. We calculate profits after all rehab expenses and soft costs are taken out.

There are benefits to doing a JV deal rather than just hiring a GC. As a JV partner I manage the entire rehab, maintain and secure the property, handle showings, inspections, appraisals, basically anything that needs to happen locally with the property. I also have a strong motivation to complete the project on budget and on time to maximize my profit. Just something to consider.

@Dave Godfrey I've been on the contractor side of several JV deals just like you are describing. I wouldn't do it for less than 50%, and depending on the scope of work I may ask for as much as 60% of the profits. As a seasoned contractor with experience flipping I hold most of the cards. You have the deal, but I have the knowledge and resources that you need to cash the check on a successful flip in the end. I could always get a HML or private money and pay much less than your cut of the deal. On the other hand you could always just ask him to bid the total job out and pay him as you would a general contractor.

If you can get a 50 50 deal with an experienced guy that you know and trust, I'd take it.  Just my opinion.

@Enrique Zaragoza  I wouldn't ever plan on just $20k for repairs on a house that you can't look at.  That's a cosmetic rehab at best.  You can learn a lot about a property by looking at the exterior.  If you know what you're looking for you can easily tell if the roof, windows, or siding needs replaced.  If it's vacant and can see the AC unit, chances are the furnace is probably in the same shape.  Assume that the interior will need every bathroom and the kitchen gutted and you'll want to put in new flooring throughout.  Some of the big concerns that you'll have buying a house without access is the foundation, possible mold issues, or just a bad layout.

I'd never buy a house unseen if I didn't have a crew ready and experienced to deal with whatever we might encounter.  Plan for the worst and hope for the best.  But I'd advise against it unless you're very experienced.

@Elizabeth Butt  I think you'll get a better response to this if you're willing to offer something in return.  Most seasoned investors don't have a lot of free time set aside for this.  I've always been willing to spend time with people starting out, but I expect a give and take relationship.  If you want a few hours from me, you need to save me a few hours.

There are lots of ways to do this.  Drive properties and take photos, help analyze deals, pull comps, or even roll up your sleeves and help out on a rehab.  I had a guy last spring who wanted to pick my brain for a few days.  One of those days I had a load of topsoil delivered to one my rehabs to correct grading around the house.  He grabbed a shovel and a wheelbarrow and moved the entire load.  He's doing very well now in his particular niche of real estate and we still keep in touch on a regular basic.

 You're right of course, there's no point in counting your chickens until they're hatched so I'll refrain from offering those examples until they are sold and the projects are complete.  Here's the numbers on the property we rented.

$83k purchase price

$50k rehab

102 days holding

Currently rented at $1450/mo.

Refi appraisal came back at $193k, which we are challenging for being too low.  The underwriter agreed and we expect a new value very soon.

Everyone likes different areas for different reasons.  To each their own.  We like what we see in Franklinton.

@Ahmad Fadhil I've refinished and painted kitchen cabinets one time and I'll never do it again. To do it right it's a timely process and you still have old dated cabinets. To get to the high end of your ARV range gut that kitchen and start over. It's tough to sell a flip for max value if your kitchen doesn't really pop.

@Patrick Philip  I usually budget $150 for my crew to install kitchen appliances.  There's a little time involved in an OTR microwave and the dishwasher requires a bit of work to make all three connections properly, but it's generally part of the kitchen punch list toward the end of the project.  Once your countertop is installed you do your faucet, plumbing, and appliances along with any other final punch out items for your kitchen.

I'm a little surprised by some of the opinions here. I currently own four properties in the Franklinton area. Three of them will be flips and the fourth is a BRRR deal. The response we got to our high end rental was almost overwhelming. They aren't quick and easy rehabs by any stretch, but the returns we're expecting on our flips are very worthwhile. You've got to know the area because it can be street to street, but high end rehabs in the right area are selling for $200k+.

On second thought, it's a horrible area.  Don't even think of buying down there.  ;)