All Forum Posts by: Jesse Harris

Quote from @Evan Polaski:

@Jesse Harris, clearly you are asking for each persons criteria, so will likely get a wide variety of answers.  For me, I want to make at least 20% on my investment and a minimum of $50k per house.  So, even if the all in is $100k, it is not worth all the time and effort to make less than $50k, generally.  Or if it is $500k all in, I would want make roughly $100k.

Have we deviated from this?  yes.  Early on, we did properties that we thought (and actually did) make $25k on.  But that was early on, before we ran into bigger issues and didn't value our time as much as do now.

So what methods did you use to come up with these values? In our market in Colorado, seems like finding even $40k profit is tough.

Quote from @Evan Polaski:

@Jesse Harris, clearly you are asking for each persons criteria, so will likely get a wide variety of answers.  For me, I want to make at least 20% on my investment and a minimum of $50k per house.  So, even if the all in is $100k, it is not worth all the time and effort to make less than $50k, generally.  Or if it is $500k all in, I would want make roughly $100k.

Have we deviated from this?  yes.  Early on, we did properties that we thought (and actually did) make $25k on.  But that was early on, before we ran into bigger issues and didn't value our time as much as do now.

 Makes sense, that was my thought too. As we get to bigger properties I'm thinking we need more return than we did initially. Good insight, thanks

Hey guys,

About to go into our 4th house flip and wondering how everyone analyzes a deal and decides on their minimum profit required to do the deal? Is this a personal preference or a % of the cash you put in? Are you going into any deal at any price with a minimum dollar amount return, or a return on the cash or amount of rehab you put in? Trying to nail down my minimum because I only have enough cash to really do 2-4 deals a year. How do you guys decide on your number?

Quote from @Dan Kellogg:

Anyone know an affordable photographer in Longmont CO 80501 for a walk through?thanks

Colorado Staging and Design is awesome. They did ours in Greeley but not sure how far south they go. 

Hey guys,

Finishing up a flip in Northern Colorado, and debating whether or not to install a condenser for A/C, roughly $5k in additional expenses. I'm wondering if I'll get that $5k invested back or more on the sale, or if it is not worth the effort? I would say this is a C+ neighborhood in Greeley, CO. 2 bedrooms are in the basement which are underground, with 3 bedrooms at ground level. Are you guys adding A/C to flips that don't currently have it, and are you seeing that it is worth the returns?

Does your answer change if you are going to keep it as a rental?

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $215,000
Cash invested: $90,000

Contributors:
Tyson Thompson

Purchased from a wholesaler after we held strong on our numbers, and were able to get it $30k less than posted. Utilized a hard money lender to close in under 7 days. Currently 36 days into renovation and on track with our budget, hoping to list on the market by April 1 for a $75k - $100k profit. We will also run a BRRRR analysis to see if we can refinance this, get all our money out, and positively cash flow if we hold as a rental.

How did you find this deal and how did you negotiate it?

Found the deal through a wholesaler, attended the open house and made an offer on-site. Our offer was 3rd highest so initially we did not get the property. The next day, the property fell to us, so we lowered our offer an additional $10k as the seller was urgent.

How did you finance this deal?

Hard money lending

How did you add value to the deal?

Buying low, sticking to our numbers, keeping construction on schedule

What was the outcome?

To be determined

Lessons learned? Challenges?

Subcontracting is slightly more expensive, but expedites your holding time which frees up more time for us to invest in other deals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Tyson Thompson (real estate agent)

Quote from @Dan Guenther:

Hey @Chris Arling, welcome to the BP community! I'm in the Boulder County area and would love to connect. I'd recommend attending some local meetups up here in NoCo. I run a meetup in Longmont and investor friends that run meetups in Boulder and Fort Collins. I'll send over more info for you! 

Hey Dan! I live in Wellington and would love some info on Fort Collins meetups as well, even Longmont! Welcome to BP Chris! I’m working on my 2nd flip with a partner and using a hard money lender for the first time as well, but so far so good!

Thanks guys. Good to know I'm not too far on my methods. I like the idea of adding in a contingency. I'm fairly new to investing so trying to figure out where my weaknesses are and making sure my thinking is on the right path. Thanks!

I am very savvy at calling contractors to get pricing on jobs where there is ample time. However, I am struggling to find an accurate way to estimate rehab costs if I only have say 24 hours to see a property and run my numbers if I want to make a quick offer. How are you guys making quick rehab estimates without calling all your contractors and getting them out to see it? I can ballpark within $5k, but that can make or break a deal! Thanks

Investment Info:

Condo fix & flip investment.

Purchase price: $112,000
Cash invested: $50,000
Sale price: $215,000

Seller financing on a full interior gut and repair

What made you interested in investing in this type of deal?

Seller financing with a low down payment

How did you find this deal and how did you negotiate it?

Friend of a friend held this rental for 30 years and wanted to get rid of it.

How did you finance this deal?

Seller financing with interest only payments and a balloon payment at 12 months

How did you add value to the deal?

Financial tracking, self-performed demolition and some renovation, contracted subs

What was the outcome?

$30k in profit, sold in 15 days

Lessons learned? Challenges?

Learned to contract out work in order to keep a solid schedule. Could have flipped much quicker and done 2 deals in the same amount of time

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes