All Forum Posts by: Kyle B.

@Randon B. 

I haven't used Listsource in a while now. I've been getting probate and absentee owner leads straight from the county records and I have found this information to be much more reliable and a better lead generator.

For absentee owner letters, I use the standard yellow letter format while I use a more formal typed out letter for probate leads.

What products/methods have people used to help "soak up" dampness and moisture in a basement? It's becoming a small problem as I'm trying to paint the floors. Not necessarily looking for a long term solution (not worth putting in a drain tile given the type of basement it is), just something that can get it dry enough for an extended period to paint the floor. Humidity is a big issue, so I already plan on getting a dehumidifier down there. That could possibly help quite a bit as it is.

Thanks,
Kyle

I have a property I'm going to flip and am considering installing engineered hardwood in the main living areas. I've never purchased this flooring before so I was interested in knowing what other rehabbers typically pay per square foot. I've mainly been looking through Lumber Liquidators and BuildDirect and have found a lot of options in the $2.50 to $3.00 price range. Can I expect flooring in this price range to be quality, or would I need to pay up for a better quality. I'm not looking for anything fancy, but I obviously want to avoid crap product. For reference, this is a house that will sell for $135k, so most likely a first time home buyer.

Thanks!

Thanks for the quick responses. I better get started on this since I'm already a few months late!

Hi all,

My accountant just got back to me about filing my 2013 taxes and he says I need to file 1099s for all the contractors I paid over $600 for over the course of the year.

Is this standard protocol for real estate investors or is my accountant misinterpreting how I'm using the contractors. Not sure, because I already spoke with a rehabber who has never done this before, but I figured I'd reach out to a broader audience to ask the question.

Thanks,

Kyle

@Justin S,

Yes, you make some great points. Geographic markets will play a huge role in margins. In my market, newer homes do not get flipped nearly as much (1980 and newer). At least in terms of what I'm focusing on, most flips are for first time home buyers, ARV of $100-200k typically. I guess one thing that justifies the higher returns is that the rehab will often times cost 50% of what you paid for the property and potentially more on the lower end of my ARV scale. If you just have very minor rehabs, it is much easier to predict costs, hence less risk. Plus the weather... now that is just making me jealous.

@Justin S.

I'm surprised by even those figures. Even that seems like such a slim margin given the amount of risk and capital. I have two deals under contract and estimating 17-18% returns on ARV (~25% return on investment). Of course, these are just estimates so they could be lower (or higher!), but I still expect them to be well above the figures you quoted.

I'm not doing 25 deals a year though, these deals took time to find so I understand your point of the more deals you do, the lower profit you are going to need to take. It just goes to show how invaluable a successful lead generation system is for off market properties. Anything on the MLS will get gobbled up quickly, decreasing margins at the same time.
@Justin S.

@Kiran Bhonsley

Get connected with a local real estate agent. They will be able to send you REO listings for properties the banks are currently trying to sell.

@Kiran Bhonsley

No reason to focus on one over the other. If you are working with a realtor and looking at MLS deals, then the majority of what you'll look at are bank owned REOs, but there are also sellers out there looking to sell their outdated home - these can potential be good deals as well. It's just a matter of getting it for the right price. You shouldn't have any problem focusing on both types of properties simultaneously.

@Clary C.

If you purchase the property for $90k, will this allow a rehabber to make money on a flip? That is the biggest question you need to ask yourself. Given that he has to bring money to the table to close, it's unlikely the seller want to sell for much less. If I were in your situation, I'd schedule a time to walk through the property so you know what repairs are needed for a flip. Then you'll need to figure what the ARV of the home is. From their you can make your offer to purchase. Both a contractor and real estate agent can help you with the repair and ARV figures. Keep in mind though that you will need to create motivation for these people to help you since you aren't rehabbing the property yourself, hence, not hiring them for the actual rehab and sale of the property.

Hope this helps.