All Forum Posts by: J Scott

Originally posted by Jeffrey Koenig:

It would be great for our Atlanta members to be able to be able to drive by and watch your project progress, or even take a tour if you have the time.

If anyone in Atlanta ever wants to follow along on a rehab, I chronicle all my flips on my blog (including detailed financials), and I'd be happy to "give a tour" if anyone is interested... :)

Agreed with Jon...

You need to ensure that your end-buyers are using your lenders...that's the optimal way to ensure that there are no surprises when it comes to getting funding and following through with it...

I've never heard of a bank that will negotiate directly on a property once that property has been turned over to a listing agent. So, unless you have an "in" with an asset manager, I'm guessing you won't have much luck negotiating outside of working with the listing agent.

As for financing, I'm not sure I understand the question. You don't need to finance with the same bank you're buying the property from, if that's what you're asking. The financing and the purchase are completely separate; one has nothing to do with the other.

Originally posted by Tay Gainey:

Are there any clubs in GA.?

Check out: http://www.gareia.org

Hassan,

I'm doing about a flip a month in the Atlanta area (Cobb County)...if you want a couple lender suggestions (banks that make rehab loans, not private money), just shoot me a PM...

Originally posted by Kyle Richter:

Is there any great advantage to opening a LLC vs. Sole Prop. other than protection form pesonal loses?

An LLC can be taxed as any type of entity you want, whereas a sole prop can only be taxed one way. This allows greater flexibility from a tax strategy perspective if you have the LLC in place for your business.

Andrew,

I'm in Cobb County...would be happy to chat about RE anytime...

J Scott

Originally posted by Jon Holdman:

Assuming a four way comission split, with a net of 1.5% to each person...

Just for reference (my wife is an agent for the purpose of handling our real estate investments), the typical agent will keep between 2.0% and 2.9% of their 3% commission, even after paying their broker.

Most major brokerages take 30% or less of the commission, and some take much less (my wife's brokerage, which has several thousand agents, only gets $40 per transaction).

Of course, there are desk fees, MLS fees, NAR fees, etc, but they can be pretty minimal as well if you're generating lots of transactions.

So, if you shop around, you can keep a good bit our your commission...

Originally posted by Colin Ralls:

Most if not all the REO contracts I've seen disallow assigning the contract to another person.

You can still do a double or simultaneous closing...your buyer buys from you at the same time (or at least same day) that you buy from the seller. Depending on how you do it, you may need to come to the table with the purchase money or you may be able to use the end-buyer's money for the purchase.

General rule of thumb I use on replumbing an entire house -- for a 1500 sq ft single family home with 10-12 fixtures (sinks, tubs, toilets, taps, dishwasher, etc), you can probably get it done for about $3500-4500 if you shop around.

It may be a little more or less, depending on location, contractor, accessibility of pipes, material used, etc. But that's a reasonable ballpark to assume for a typical single family using CPVC as a replacement.