All Forum Posts by: Jason Grote

Trying to get my wife and my dad on here.... I know they will enjoy it!

Mark Yuschak My sentiments exactly... I take a more organic approach myself and take all of those factors into consideration. I have a hard time with the "template". Another big factor for me is going to be the potential days on the market. Although I try to price them to be under contract in less than 30 days, you just know some hoods take a while.

I have never had anyone send me a "carpet & paint" flip either! They always seem to be ugly ugly ugly!

Thanks for the post!

Ryan Fatula Message me and I will share with you how it all went down...

Will Barnard Thanks, that makes sense... I can see how you can get burned if you don't pad the margins. Any thoughts on how to reach this client base? Another way of asking about marketing ;) If you only want to give your secrets to me, you can send me a PM, lol!

Aaron, I completely agree with what Danny said. I suggest finding a good Real Estate Agent that understands investing. For the cost of their commission, they can give you advice that will help you for years to come and set you on the right course.

Our family personally used an agent for the first flip and she gave us ideas that we still use today.

You might not make a huge profit, but you can make a decent one and get paid for your education!

We personally have built a relationship with 2 local banks. They both do a "rehab" loan which enables us to get houses in poor shape financed. They include the fix up costs in the loan and then allow you to draw it as you complete it. We do this almost every time we can.

I wish you the best!

Will Barnard Thanks Will, I like that formula. Our business model has kinda mutated as time goes by, but with the advent of our website, it is bringing a wide range of homes for us to prospect.

Up till just a few months ago, we have almost entirely dealt with homes in the $100-180k range (before rehab), but it is my desire to move into the upper price range homes. We just listed a house in the $400k that we acquired through our site and the profit margin is quite appealing. What kind of advice can you give me concerning moving into this "league", ie. marketing, cautions, dealing with sellers, etc. Thanks for any feedback!

Thanks for the posts everyone. I am curious, what if the ARV is $100k and it took $50k to get it there? Then on the flip side, you have a house with an ARV of $100k, but all it needed was carpet and paint? Would you still be looking for $20k?

Cold calling will be tough, but...

In the tax roll in Austin, they have a DO NOT CALL selection. If you have such a thing in your area, respect their wishes and send them a letter instead.

Have you filtered out the absentee owners? If so, this is how I would approach them:

"Hi, I am Sagnik and I live in and am looking to buy a home in your neighborhood. I noticed your home at and wondered if you might be thinking about selling it?"

You want to express to them that you are local, and not calling from some remote call center.

If they happen to catch them at a time when they are considering it, they will open dialogue on you. Otherwise, prepare yourself for some hang-ups, brief conversations, and criticism.

Also, if you do not have a website or something will validate you saying who you are, I would get one. People are going to be cautious when approached over the phone.

Hope this helps!

I am very curious as to what profit margin other rehabbers are looking for and how they calculate it. I will go ahead and bare my own strategy:

This is assuming the purchase price of the home is between $80k-150k...
If the rehab takes 1-2 weeks we look for a $20k+
If the rehab takes 2-4 weeks we look for a $30k+
If the rehab takes 4 weeks+ we look for a $40k+

I know this is probably a very strange strategy, but it works well for our business model.

I am curious how other rehabbers determine their margins??

I use a fairly simple one-page assignment contract, but like already mentioned, your purchase agreement is the key. The Assignment contract is merely substituting the new buyer in your place. This is not complicated.