All Forum Posts by: Maria Taylor

Let me start by saying I'm also a newbie.

From what I understand, it gets better with experience. I made my first offer yesterday and spent so much time trying to have the most accurate figures as to not be one of those wholesalers who are way off on their numbers. But when i look at other contracts wholesalers put up in my area, most of them just say minor, moderate, or major rehab on the repair costs. Really, diff people can get it done for diff amounts depending on their own experience. I think a fair place to start is for a ~1500 sq ft home, light or minor rehab(paint and carpet, cosmetics)10k, moderate or average(add to that kitchen and bathroom update)25k, and major or heavy(everything redone)50k. Again, these are just starting points. I find studying what other wholesalers put up on facebook and other media in my area really helps. You can see which contracts are getting attention and the compare their pics to their est rehab costs. 

Also "The book on estimating rehab costs" is constantly recommended to me

Hi! I'm also a newbie, so i know how you feel. I got a hold of some contracts(for sales agreement and assignment) and took them to a real estate lawyer to look over and made sure all my bases were covered and asked a ton of questions. After getting a contract signed, you usu have a limited time to take it to the title company and put down an EMD with it. That way also, they can make sure the title is free and clear. I would suggest finding an investor friendly title company to work with, they can provide good insight and let you know what you need to do so far as after getting a contract signed and might let you use their contracts as well.

I have did searches in the forums and can't seem to find the answer. In the webinars I can submit a question, but I can't see the others chatting nor can I see the view options. 

I can't seem to find the answer to this either!!

@Greg Scott Yes we want to have one, and being sure its done right is the reason we are going to a real estate attorney to do it instead of the the quick routes of doing it online and such. What situations are you referring to where it wouldn't protect us? And why did you decide against the operating agreement?

Hello BP! My husband and I are filing for our llc in a few days and the cost of doing an operating agreement is another $200. We are on a tight budget already and I don't know if this is necessary. To my understanding, if we don't have one, then the "general rules" for Michigan llc's will apply, but I'm not seeing what's wrong with that right now. Can we file this later? Is there something else I should be considering. I know anything can happen, but I think I'm ok with splitting this business 50/50 as the default rules state.

It didn't work 😕 but I'm also on my phone. Thanks anyway

I'm new to re, but have you tried finding wholesale groups on social media and putting out you're a buyer and what you want? Also you could maybe reach out to the wholesalers you've worked with and ask them to try to negotiate down a little more with the sellers because profit margins are getting slim.  Maybe they're having trouble selling contracts because other flippers feel like you do. 

Just my young 2 cent... you pros correct me if necessary lol

Thanks everyone.  I guess what i was concerned about is if i didn't add my labor into the work that went in for that withdrawal, how would I be compensated.  But the less money i spend on rehab the less i pay back to the lender.  Unless like stated by Evan, i needed it right then. I'm going to try to wholesale so that i don't need the construction loan at all,  it is indeed expensive!

btw.. how are you guys tagging each other?

When a hard cash loan funds the rehab of a house,  and we do the labor ourselves, do we pay ourselves from the reimbursement? If so, would it be better not to incorporate the cost of labor at all and have to pay interest on less money?