All Forum Posts by: Haider Abdullah

@Hai Loc my 3:

Milton, St. Catharines and Thorold. 

Milton i bought for $860 in 2016, heloc’d $120k 8 months later, bought the other 2. It is now worth about $1.05M and I’m getting $2900/month

St. CatharinesI bought for $305k dec 2017 and is now about $400k and I’m getting $1850/month 

Thorold I bought precon for $400 which closed sept 2019 and is now about $440k and I’m getting $1750/month. 

Appreciation has been great so I can’t complain. Waiting to either sell or refi Milton and look into something commercial 

@Kenneth McKeown @Joseph Pytcher love the energy and insane growth and current success!

I’m with both of you: I think buy and hold is ultimate long term strategy that’ll enable continuous income passively, and then extra time can be spent acquiring more and/or flipping. Downside of flips is active/ordinary income. Upside is the relatively quick in and out and immediate cash on cash returns. 

I’ve been fortunate to have built a team out there. We are in the midst of bringing in an acquisition specialist to help source deals for us via wholesale/long days in market, probate, etc...so hopefully we can scale with this new team member. 

$16k net on deals is huge! Can you sure numbers? My first deal I was all cash $143k with reno and sold for $184500 in Arlington. We turned $20k net on this hit deals like this at this price point are a bit harder to source. 

On my second home I ran into an appraisal issue: we sold for $225k to fha buyer. Appraisal came out at $211 so we lost that money (we disputed but it got rejected). Would love to hear your thoughts on these situations. 

Thank you all - this thread has been super informative for me!

@Kyle Mccaw thanks for the note! I’m buying from wholesale and then selling with my real estate team out there. Working out some form of kick back on their commissions based on volume. 

I’m hoping to do 10-12 this year so let’s see. Definitely agree on the “pace”...stuff is like a drug and such a high when you’re in the game

@Eric James I’m buying in Dallas. Focusing on areas like Arlington, Mesquite, Garland, Plano...

@Hai Loc huge difference in market! And from a buy and hold perspective, no chance at getting 1% RTV unless you add basement.

@Eric James it's crazy to see how many more folks are showing up at auctions. But I still feel if we can achieve buying at 70% or better ARV then we can still turn a profit. May not always be a huge one, but we can turn one.

@Kenneth McKeown thanks! The initial intent was to buy and hold but I was fortunate to have access to some solid folks and built out the team. They’ve been running at 200mph and delivering some amazing things. 

I'm also buying with a rent hedge in mind. So the areas we buy typically have decent rental opportunities so worst case, we BRRRR

@Joseph Pytcher thanks. I realized I didn’t stipulate when I get the “management fee” - only after a minimum return percentage is achieved. So if the house sells for $250k and we made 15%, I’ll then take a 1% fee on the sale price...

Appreciate the note, and definitely hoping to ramp up to greater volume!

I’ve been looking in Arlington, Frisco, Garland, Mesquite, Plano, and now opening up to Fort Worth...open time recommendations

I’ve recently bought 2 in Arlington both from wholesale deals. I also live in SoCal. Hit me up and let’s share ideas 

I started flipping in Dallas earlier this year. To date, have completed 1, have 1 in escrow, and close on 4 purchases this week. Most are being bought in wholesale, some conventionally financed too.

Wanted to hear experiences of others and especially now, I’m finding the Dallas market to be super competitive in the sub $200k category.

That said, my flips have varied in price; buying as low as $110 in wholesale/auction, to paying as much as $500k in Frisco for something that’s about $25/ft below market.

First deal was all cash: $143k all in, sold for $184,500 in Arlington (day 1). Netted just over $20k after closing costs (by the way, what's reasonable closing costs here: I paid 8.4%). 120 days purchase to funding (FHA buyer pushed us out a month)

Deal 2: bought for $148k in Arlington again, this time on finance. Put up $60k after rehab and sold for $225k (appraisal came in at $211 and we settled at that number). We will net about $20k cash on the $60k invested and this will fund August 8.

Other 4 are underway and will all be hitting the market in mid-late August.

I’ve done this by raising capital: nothing of my own. Raised about $800k in the last 4 months.

Would love to hear from the experts:

- How are you finding and funding deals?

- How are you structuring?

- How are you mitigating tax on ordinary flip income?

- Are you using LLC or under personal name?

- How would you structure the profit split? I do a variety, but mostly: 70/30 on profit (greater amount to investor) and add a 1-2% management fee on sale price depending on return. Also working on getting my agent to offer some type of volume deal.

Looking to use income from flips to purchase and grow out personal buy and hold portfolio.

Super excited to read your responses - welcome all feedback and questions.

Thank you and stay safe out there!

Haider

Ps. A bit about me:

Live in Irvine, CA. Moved from Toronto in October 2018. Have 3 houses back in Toronto and love the real estate game. Like many of you, working a full time day job and trying to turn this side hustle into my only hustle.