All Forum Posts by: Keith White

4400 sq feet is a huge home, what type of rehab is needed? How old is the home? A lot of homes that size are very old homes or at least in my area meaning the rehab cost would be extensive do you have a better idea of what is needed. Also what is the market like in your area, how many people are looking for homes of this size? You have to think about turn around time if your target of clients is small. 

Just a few food for thought questions. Also if comps are at $100 sq ft and the auction is that low I would be cautious just due to the fact if it is that good of a deal an experienced investor would be all over it, but homes slide through the cracks all the time so hopefully this is one for you.

@Aj Bowman 

    Congrats on the deciding to make the first step, it's always the hardest! I am also from Maryland but in Salisbury on the eastern shore. Our price point is much lower then yours but also our market isn't crowded, esp not with people flipping homes. I would say that any 15k renovation is unrealistic in most cases unless it will be minor work. Even between me and my business partner handling some of the renovations ourselves it is hard to stay under 20k on any project.

Also what price point are you looking to purchase at, and what type of ROI is your goal to make on your first project?

Thank you nick, yea I wish there was more people in my area on bigger pockets but I am trying to connect with everyone I can. 

I was hoping to hear from some people on here that use property management companies and tell me the rates they are charged and the pro and con of the companies they use?

In the last few years me and my wife got into the real estate investment world, me with flips her with property management and getting her real estate license. She managed 45 properties for a guy in town but recently more and more kept getting added on the table and he was using her as a office manager for his personal business ventures not just rentals. 

My business flipping homes has started to take flight lately and we see this as a good time to make a move and open our own property management company. I was hoping to hear some suggestions from people what they have liked and disliked from management companies in the past.

We live in Salisbury, md and college rentals are huge here as they bring in the largest return ($1350-2000 a month on 80-90k property) even though she specialized in college rentals we are willing to take on SFR as well.

Rates we are thinking would be 9% of collected rent unless a certain number of properties are brought to the table we would lower this percentage based on how many homes they have. Since I've built a crew of workers and friends in all trades all work can be handle in house from plumbing/electrical/hvac/carpentry etc. thus saving a ton of cost on the major issues which we would pass on to our clients. $25 flat hourly fee for basic maintence calls and $40 flat fee for any mechanical type calls with 0 markup on any parts. 

Flat fee of $250 for any college rentals as they are often high turnover rates and don't want to charge the homeowner every year a months rent , on SFR would be first months rent.

My thing is we don't have any local real estate investment groups to network with so getting our name out I am concerned about so any and all input would be great to hear. 

I have paid anywhere from $1800 to $2200 for a service upgrade from 100amp to 200amp. Those prices are the total after me buying materials and hiring someone for labor to just hiring someone including materials and install. Before I got into flipping homes me and our business partner generated a lot of our initial income from doing hvac installs on the side in our area. 

So most of our projects required a service upgrade as have all of our flips. 

Hey Gabriel, I agree with you I would feel more comfortable with a set interest rate to begin with as like you said there is no letdown if the price ends up dropping or Reno cost more then anticipated. What area are you currently working in? Also what type of ROI do you look for in your area?

 Thank you Stephanie, yea so far things have been going well for us. We have yet to use any outside money other then cash we generated on our own. We were lucky enough to have been in the construction field for years and experienced in every field in home construction to begin with. We started off by doing side jobs on weekends and nights and saving up our money, eventially we worked a deal to do a flip for a guy for a percentage of the profit and just went from there. Feel free to send me a message anytime I would be more then happy to share what I have learned over the past few years

also I meant to note that my wife got her Maryland realtors license this past year so we are able to roll that commission into our profits. 

I'm located in Salisbury, Md on the eastern shore of MD, and have been flipping homes for the past 3 years. Currently me and my business partner are doing one house at a time trying to get enough going so that we can have multiple properties going at once. Often in many areas I notice that people can't find good deals or the market is flooded, here it is opposite there are many deals and low cost of living allows for lower upfront cost and risk. We have done very well for ourselves in our properties but want to take it to the next level. I wanted people's input on what to offer potential investors when I approach them, as I have two meetings lined up for next week. 

Should I be approaching them as offering a profit share or what about offering a guaranteed ROI percentage? One advantage is I always have a property of my own underway so there are multiple fallbacks and advantages to being able to pay people back before the property they invested in even sells as I could use the profit from my other flips when they sold.

Most properties that I'm looking at are in the 35-75k purchase range and ARV values of around 110-150, with average Reno cost of around 20-30k with most projects taking 90 days also since there are a lot of FHA loans on these properties it really doesn't benefit to flip it any faster.

The are does have a few flippers but most are very low quality and do not have the construction network that me and my business partner have from being in the field for years so there Reno cost is so much higher then ours we can sell cheaper and better quality, as our last 2 houses were both under contract in less then 10 days where theirs sit on the market for months. 

Any input anyone can give me I would appreciate, I know I'm in a small market but to me it's an advantage to help me find other investors as the buy in cost is so low compared to many areas. 

 Hey joe thanks for the response, sorry I should of gave better info. In my head I'm planning for 10% vacancy but should of wrote that in my post. As far as property management fees my wife is a local property manager so I did not include that, also as far as capex I don't see any major expenses as the roof is under the hoa, my business partner is a licensed hvac tech and regional rep for a local hvac/plumbing company and we can get all units and parts at well well below cost and install ourselves like we do on our flip properties. Everything would be handled in house by us and I figured that by down The road when we are ready to not be involved everyday the inflation of the price of rent would cover this cost.