All Forum Posts by: Tayler LaChapelle

I believe I finally found my first fix and flip deal but I am at lost how I am going to purchase this project. They say if the deal is great the money should just come to you but I am starting to realize it is almost as hard as finding the deal I just found! 

I went driving for dollars, found a FSBO sign and called up the owner. I wanted to see if the house he was selling was going to be worth my time to invest in. We both came to the conclusion that it wasn't, he was asking full price (260K) and just didnt make sense.

HOWEVER, he said he had another property he just got 3 months back. He is also a real estate investor he said for quite some time. He offered me to view the property this Tuesday. He bought property for 150K, it is a 3 Bed and 2 Bathroom house. He wants to make at least 30K on the house. He said he hasn't fixed anything up just yet because he has other things going on right now. He is also a real estate agent and just off of his words, he said the house's ARV is 250K. He wants to sell it to me or if I won't take it he said he might just hold it till spring when he can get more money out of it.

He wants 30K like I mentioned plus for me to pay the closing costs. So all together 180K + closing costs. 

Given that his calculation is correct that the ARV is 250K would this make for a good fix and flip project?

Looks like you posted it in the right place! You got lots of interest in it!

You should listen to podcast #77 to get an understanding of how to negotiate with the seller. You should never give a price. You should ask them what is the lowest they are able to do and let them give you a price. Once they give you an amount then you can negotiate if you don't like that price. Make sure you run your own numbers so you can determine the ARV and determine how much repair costs will be. You want these numbers to be as accurate as possible, as this will build your reputation to your end buyers. Do not just guess because investors talk so you don't want to ruin your reputation. Most investors already have a hard time with wholesalers because their numbers are always off, don't be that wholesaler! As for letting the seller know you will sell it to someone else just be honest and upfront. Tell the seller what you do is you find people wanting to get rid of their properties but aren't able to. So your job is to help both the seller and the buyer by matching you guys up. Tell them either you or your "partner" will purchase the property. Also judging from other people's experience it's better to tell them your going to be making a profit than to not tell them. I've heard sellers backing out because they got turned off by wholesaler when they found out they were making a profit. There are such things like double closings but some companies don't allow it as well as some states. Double closings is where the seller won't see how much your making. The seller probably doesn't even know there's another buyer because you close the deal on the contract you made with the buyer first. Once that deal goes through you use those funds to purchase the sellers house! And you pocket the difference! This is just a little info but I would definitely check out BiggerPockets podcasts they have amazing information. You should start with #77.

I found a property today and it looked maybe like a nice fix and flip. I did some research to find the owner and even found the owner's phone number! Gave the owner a call and since it was my first call ever I am not sure if I asked the right questions but I did find out something. I found out that he has some liens on the property and owes the bank some money. He had an offer from someone for 100K and more for lower prices and the bank denied all of them. He said he probably needs at least 125K for the bank to accept. Now I haven't run any comps but on my county's website it has an estimated value for 137K. 

My question is does anyone have the knowledge to make this deal work maybe been here before? Or should I just let go of this lead?

I found a nice beat up property driving for dollars today. I haven't done anything but still exciting to take a first step and actually find a property! 

What I did do after I wrote down the address is look up the property's info on my county's website. Even though the house looks completely abandoned, it is owner occupied. It looks like they bought the property in 1986 for $58,500 on a warranty deed. If anyone knows what a warranty deed is let me know!

I haven't run my own numbers on the property but looking at the county's website it says the home's estimated market value is $135,700. Of course, you should always run your own numbers no matter what but my question to you is what do I do next? Do I mail them even though the property looks abandoned? How can I obtain this property? 

Let me know! Thanks so much guys!

P.S. 

I am willing to partner on this deal. 

Welcome friend! I am currently on the same path as you! Looking to get my hands on my first house hack rental! I have met up with some people on BiggerPockets and I encourage you to do the same. There are people around you with loads of information, you just have to remember to ask! Can't wait to see you succeed on your journey!

Welcome Darron! BiggerPockets is an awesome website! There's so much information on here, you could almost become a real estate genius over night! Also welcome to the Twin Cities! I love this city so many things to check out here! I am on the same journey as you. I am just getting started in real estate investing and through my hard work I will help out my own family as well! If you ever feel stuck or don't know the answer ask BiggerPockets they will usually have the answer!

I am from Minnesota and have been looking for an investor friendly agent! So it is very nice to meet you!

Hello! To make this long story short, I come from a family of 5 younger siblings, a mom going back to school, and a dad who is consistently gone months at a time for his business. I currently work 2 jobs trying to supply for not only myself but my family too. I currently got engaged and am getting married September 3rd, 2017. We are still paying for our wedding. I am about 6,000 in debt paying for a car and credit cards right now. ( The car is a majority of it, I am really good about using my credit cards) But as my father is always gone and because he is self employed he never knows when his next check will come and how much he will receive. My siblings consistently ask me to come over and hang with them but I am so tied up in working 13 hour days each day that I feel like I don't have time and when I do I am too exhausted. I really want to get out of having a traditional job. I hate being scheduled when something pops up in my family that I wish I could be there to help out. 

I have looked at getting into rentals and flipping. If the deal makes sense I would keep it but if I needed money asap I would probably flip. I have worked construction before (just a demo person) but I fell in love with what a person can do with just two hands and a couple of tools. I love the process of creating good looking house from a bad one. 

I have been reading The Book on Flipping Houses by J Scott and also Rental Property Real Estate Investing by Brandon Turner. I Just begun the books but so far they are really good reads. 

I really want to start my real estate investing journey but I am trying to find a way I can get access to money for deals. I have ok credit, I am 20 and just got 2 credit cards to work on building credit. My income is good I guess, I make about 2,000 a month. After I pay my bills my income left over is about $500. 

I live in the Minneapolis, Minnesota area. Love this city. But as far as my life goes I don't want to continue to blow my family off and have two jobs or any regular job for that matter. I see my grandma and she's still working at a corporate job for 30+ years! Not me! Even more sad I go to retail stores and see people working there in their 60-70s! They may like it but I still think its sad like at that age you should be traveling enjoying life! 

Anyways, I made this longer than a short story but I really want to change not only my life but my family's life too. What advice do you have for me to get started like YESTERDAY?!?! Thank you.