All Forum Posts by: Jacob A.

Thanks Jimmy Hong I appreciate the support!

More good news! I got the executed contract back today from the seller so I'm good to schedule my closing hopefully sometime next week since it's all cash close. I figure now is as good a time as any to enter in my finalized prelim budget since most of my costs are locked in. Here we go:

Purchase price: $51,500
Survey and other closing costs: $1,400
Rehab budget: $59,000 (complete gut, 4th bedroom addon, deck, demo load bearing wall, minor foundation issues, etc)
Holding costs (assuming 6 month hold): $3,500 (3.25% HELOC, taxes, insurance, utilities, lawn care)
Conservative sales price: $150,000 (could easily run into the 160-170 range if I'm lucky)
Agent Commissions: $7,500 (5%)
Buyer Concessions: $3,500 (estimate)
Staging: $2,000 (conservative)

Total Net Profit before taxes: roughly $21,600

I've been working very closely with a contractor and realtor husband/wife team over the past 3 or 4 months finding a deal and he seems very confident in his budget as he's flipped several houses in the past. The thing I like most about him is that this is his passion and he sounds like a 8 year old kid when he starts talking about this stuff he gets so excited. I've done all of my homework on him and called several references and they had nothing but great things to say. So it's time to get this party started!

Quick update. I love Fannie Mae (massive sarcasm there). So I was supposed to close on this property this week, but the asset manager screwed up the paperwork and actually ended up kicking the deal out of the system accidentally. Now they have to start the whole process over again from what I'm understanding and we should be able to close next week. I'm not holding my breath. In the mean time my contractor has started meeting with his subs at the house and we've put a plan together for the rehab and started looking at materials. The good news is I WILL be closing on the property and it is officially mine, it is just taking a little longer than anticipated. More updates to come as I progress.

James Ormond In the process of my first flip! I'm in the closing process right now but I have my contractor ready to go as soon as the papers are signed. Hoping it goes smoothly.

G-vegas in the building! Welcome James Ormond, I'm just up the road in Raleigh but know Greenville very well. My brother and fiance both went to ECU. Sounds like you've been around for a while so I don't need to tell you what a great community you have here. Best of luck to you!

Hey everybody. Quick update for you all... I actually ended up backing out of the HUD property due to several factors. Luckily I did it quick enough that they actually sent my earnest money back! I know woohoooo right? Anyways, I am under contract on another house (Fannie Mae) that I've been chasing for months right now. I'm scheduled to close next week. Ill post an accurate budget once I get everything ironed out with the contractor. Thanks for all the support.

Thank you all for your helpful responses. Is there anything else that may not be as instinctual as running your own numbers? I would definately do my own homework before committing so much capital, but is there something from a legal or other standpoint that you have run into that one would not readily think about? Thanks again.

J Scott What kind of time restriction will that put me under with the FHA (how long will i have to wait to resell)? Also, if I just simply get assigned the contract from the wholesaler during closing instead of a double close I'm assuming I'll be ok?

I was hoping to get some answers from some experienced rehabbers on what your experiences with buying from wholesalers were like. I realize I shouldn't trust them 100% I'm not that naive and that I should run the numbers myself, but if you had to give one tip to an inexperienced person when buying from wholesalers what would it be?

Sam O'Neill Congrats man this is awesome. The harder you work the luckier you get!!

Scott Bartlett Sounds like you have a pretty good hold on things. One thing I would say though is that I wouldn't use the tax records to record the cost of your building. Your cost is whatever you paid for it at closing.