All Forum Posts by: Gregory Flores, Jr.

@Benjamin Ervin this is exactly what I wanted to get into. My background is in finance and investment management, so I was looking for something analytical as my partner and I look to begin our first flip in the first quarter of 2018 (still sorting private and hard money, but we have a 28 year veteran flipping project manager who we can learn from, and an LLC).

I actually got excited when I saw all the “bonus” material that came with the books! Sounds like we’re similar in those respects. Thanks again for the feedback, and I’m woshing you luck as you continue to get out here and find deals.

I just downloaded The Book on Flipping Houses by J Scott, and wanted to know what others out there took away from the book.

What passages really made something click in your head? Could you name one tip that helped your business?

Just trying to get a good idea of where the gems might be before I dive in, which I'll do regardless.

Thank you!

I noticed as soon as I logged in, after buying The Book on Flipping Houses, and was blown away by how sleek the profile page looks. Much more personable. Great job, BP Team!

Hi Tammy Price! I believe in Pueblo long term. They’ve got some big capital projects going on, including a highway connecting Pueblo to Pueblo West (there’s currently only on main road for that trip). Lots of development in Pueblo West. Most houses in Pueblo were built between 1900-1950, so it’s a great spot for rehabs. I’m planning on getting some flips done in Aurora before reinvesting into Pueblo for a long term BARRRR strategy. I’ve been down to Pueblo recently to visit Robert Herrera who has probably 20 properties there by now. Definitely keep looking into it, and let us know what you find!

Always with great insight @Account Closed. Saving this list!

Without knowing comps or where the house is, it'd be hard to say if it's a good price or not, but you do meet the 1% rule on rent.

The seller could finance the home for 1-5 or however many years you can work out, at an agreed upon interest rate which will be higher than traditional bank financing, but not like private or hard money. The plan should be to refinance that into a traditional bank loan at some point.

The monthly payments you make to the seller will be based on how you amortize those payments. The longer the amortization (20-30 years) the higher the financing payment you make every month.

Using a 30 year amortization at 6% interest with 10% down, and 47% expenses, results in annual cash flow of $75. Doesn't seem so great.

Using the number of $750 in expenses per month gets you even worse cash flow, in the negatives.

Unless you know the place has below market rents and the leases expire soon, giving you the opportunity to increase rental income, you'd have to drive the price down a bit or come in with a nice down payment, with plans to refinance into a bank mortgage after 1-5 years.

Again, knowing comps and where the place is would help others in their responses. Hope my feedback is worthwhile!

Thanks for the feedback, Eric.

At this point, the gentleman's agreement is that he gets a 10% fee based on the rehab budget, so we won't be splitting the deal profits necessarily. His daughter also brings revenue in on their side of the business through sales commissions.

He manages his process, and collects his fee as he usually does with his other investors, but we get to learn how he does things along the way by being more hands on than his other investors during the flip.

Hi everyone.

I've recently connected with a flipper operating with 3-4 investors over the last 28 years within my local market. The starting plan is to learn the business by bringing the financing while he handles finding the property with his proprietary deal funnel, rehab management, and sale of the property.

Myself, my fiancé, and a partner would be teaming up with him to learn the business over our first few flips together, with the goal of taking work off of his plate and continuing to manage the business with his daughter, whom currently manages the sale process.

The next steps are to create an LLC, draft and review LLC partnership docs with an attorney, get some family/private money into an LLC bank account, possibly get hard money lined up to leverage the family/private money, and then go to our flipping "mentor" to begin our first flip, as he's doing analysis on off-market deals everyday.

Any guidance from the community on what to look out for as I set up this LLC with my fiancé and partner, how to handle the relationship with this flipping mentor, and anything else I should heed as I begin reaching out to private/family/hard money lenders would be appreciated. Any other suggestions for rehab and flip lenders would be great as well!

Thank you!

Hi everyone.

I've recently connected with a flipper operating with 3-4 investors over the last 28 years within my local market. The starting plan is to learn the business by bringing the financing while he handles finding the property with his proprietary deal funnel, rehab management, and sale of the property.

Myself, my fiancé, and a partner would be teaming up with him to learn the business over our first few flips together, with the goal of taking work off of his plate and continuing to manage the business with his daughter, whom currently manages the sale process.

The next steps are to create an LLC, draft and review LLC partnership docs with an attorney, get some family/private money into an LLC bank account, possibly get hard money lined up to leverage the family/private money, and then go to our flipping "mentor" to begin our first flip, as he's doing analysis of off market deals everyday.

Any guidance from the community on what to look out for as I set up this LLC with my fiancé and partner, how to handle the relationship with this flipping mentor, and anything else I should heed as I begin reaching out to private/family/hard money lenders would be appreciated.

Thank you!

The calculators work. Not every property cash flows, especially if you're in the metro areas. If you're looking in Brooklyn (my hometown that I want to return to one day as well) check out this thread on property analysis:

https://www.biggerpockets.com/forums/12/topics/509736-new-york-nightmare-market?page=1#p3121712