All Forum Posts by: JD Martin

No, but I don't operate below B class. With C or below you probably can't avoid some of it so I'd go with a recency bias, ie anyone who has a long period of time between their last eviction and successful rentals other places will be a safer bet than the guy that just got evicted. 

 I don't think that's going to work as far as getting notes because they're going to ask if you are a guarantor to any other debt. Now if you're just looking to make your credit report look better, that might work but not sure why that would be worthwhile unless you were just looking to borrow more consumer-type debt rather than hard asset notes. 

 There is no average because there are few flips that are alike and what might take one guy or team 3 months might take you 3 years. It also depends on market conditions and availability of cash in the market, both of which will create more or less "meat" so to speak in the deal. When funding is plentiful and flips are rare, the competition will be heavy and experienced flippers with teams will take smaller returns just to keep their guys working, which means inexperienced 1-man crews will be shut out of the market. When funding is rare and flips are plentiful, there will be enough opportunities for everyone but return will be depressed and better operators will make better returns. 

What kind of return you can accept depends wholly on you. Personally, I wouldn't do any flip for less than $30k net of sale because STCG tax for me would end up leaving me with about $20k or so of actual profit. Anything less than that is way too much work for what you're getting back, because flipping isn't investing it's a job. But if you don't have any kind of regular income, you might be happy making $20k or even less. 

In general, you're going to make more money on solid middle class flips but you're going to need access to more capital to get it done. Most areas you're not going to turn a $100k purchase into $250k sales price unless it needs $100k in rehab. The market is just too tight for that any more. 

Well, without any kind of significant cash on their end there is going to be a much higher chance of default. A lot of seller finance asks are from people who have no money or credit so horrendous no one would give them a loan. That's not everyone - some legitimate players may just be short on cash because of projects (I've been there) - but it is a lot of people. 

You definitely want a legal agreement that's forecloseable, getting as much front money as possible so that you're not just in a lurch with nothing if/when they default, and you should get better interest terms for "being the bank" AND I would qualify the buyer just the same as if they had to go to a bank, because you want to know who your partner is in this deal. If all that passes muster, then it could be decent for you if you really want to get these moved and interest is slow. Keep in mind that legitimate players here will usually finance you out of the deal as soon as they are able unless your terms are better than what they can get from trad financing. 

We always send deposit refunds by check to a forwarding address provided by the tenants. You always want some proof of who cashed the check and where it went. 

 Forget about hoping for rent increases. Your only real question here is how much additional equity can you earn before you sell before the rate resets and before you lose your capital gains exclusion, versus the opportunity costs if you sold and cashed out now. My guess is in that price range and limited window, you will not make enough additional appreciation to make renting it out make sense, so unless you planned on keeping it forever as a rental you are probably best off selling and cashing out.

Those things are true but I'm always puzzled by these kinds of posts. Is there a question somewhere in there I missed? Is there some specific point you wanted to dig into further? 

Shoot, that's nothing. You should see some of the houses I've rehabbed or walked.

 Definitely best exterior front shot first. Generally I think pictures should follow a logical progression as if you were entering the front door. I think the multiple drone shots showing every possible aerial view of everything is a waste of time and can actually be harmful if there's unfavorable things nearby. If there's a nice view from the property of course that should be shown, and I think the aerial with the lot lines is useful as is the floor plan, with SF if possible.