All Forum Posts by: Jacob A.

Well I can officially say I've experienced it all in one flip. The buyer got cold feet and backed out of the deal. I found out after the fact this wasn't the only house he has backed out of. It gets better, as part of our contract he agreed to pay a little more for the house if I hooked up city water for him. I obliged and he did not, so that was an extra few thousand bucks out of my pocket.

I'm trying to be positive and move forward. We put the house back on the market Monday and have already had four showings this week with some interest so I'm hoping that we can get this baby under contract again shortly. If not, I may blow a fuse! I wonder what else I can get myself into with this house.....

Can't tomorrow night. I need to make it out to one soon though.

@John Adamkewitz

I love simple answers and you nailed it.

In my honest opinion, you are getting the best end of the deal here. If I were the money man I think I'd want more than 1/3 of the split. I realize what you do is difficult and you bring a skill to the table, but you have zero financial interest in the deal. He is really taking the majority of the risk. In the deal you used as an example, $10k in repairs would roughly take a week or two at the most and you would be getting $20,000 for two weeks of work. Sounds more than fair to me. Sounds like you guys have a good setup though and I wish you the best of luck.

@Jeremiah Satterfield

I am a CPA down the road a little ways in the capital city. I just wrapped up my first flip in November and we are closing in a few weeks. I got 99.9% of my real estate education on this site and J Scott's blog so you are in an excellent place to learn. Don't be afraid to ask questions and feel free to reach out to me if you have any questions related to RE or accounting. I love talking both. Good luck to you!

You really sound like you are getting a great start on things. I'd simplify all of this for you in one piece of advice. Find great deals and the cash buyers will follow. It really is that simple. You start showing them you are a person that brings REAL deals to the table and you won't have any issues finding them, that I can promise you.

@Michael Jobe

Thanks for the shout out.

@Margaret McCoon

I'm a CPA here in the area with a smaller public accounting firm. I mostly work in financial statement audits but am very familiar with the tax treatment of various real estate investments. If you have any questions feel free to reach out and if I can't help you I know a lot of tax CPA's at my firm and others that would be more than willing to help out. Good luck.

Appraisal came back good today so that was a big weight off my shoulders! A few more weeks until closing. Hopefully, things will continue to go smoothly.

I have an appraisal scheduled for tomorrow on my first flip that's under contract. My question is how does an appraiser determine what's new and what's not? I can't imagine 10 year old windows carry the same weight at brand new windows or a 5 year old roof carries the same weight as a brand new roof. Same with kitchen cabinets, drywall, carpet, flooring, etc. After the appraisal will they ask for a list of upgrades or what? I'm trying to do everything I can to make sure it appraises.

Good advice so far. I'd add that flipping even 30 minutes away from where I live would put me in an extremely uncomfortable situation. I'm a control freak and have to know what's going on at all times. If you are investing out of your area you are putting a ton of trust in people that you may not know very well. If you have a friend or family member living in that area that may be a partner or something that's a different story, but relying on people whom you've never met would put me a little on the uneasy side. I know my market because I've grown up in it and been around it. I can't imagine going somewhere completely fresh and new.