All Forum Posts by: Mason Snyder

I'm considering investing in the Upstate of South Carolina while living in Northern California. I have family/friends in the upstate and grew up there so I have a little knowledge of the market. My question is if I want to send a contractor over to look at a place to estimated rehab costs - what's the best approach for finding one? Should I rely on online reviews? Is there anyone in Upstate SC that has a reliable contractor they use for flips? Thanks!

I am contemplating putting an offer down for my first flip. My partner lives in Ohio, has done multiple flips, and is also a contractor. We have set up an LLC. He's suggested that because he is on-site and will be doing all the repairs that I cover paying for the house (it's a foreclosure, is relatively cheap, but would use up all of my half of the money we've agreed to put in to the project) and he'll cover all the repairs. We don't have a joint bank account in the company's name set up yet and final offers have to be in this weekend. What's the best way to protect myself in this whole deal and since it's my first? Thanks

I just accepted a new job and my wife and I are moving to San Jose at some point in the next 30 days. We've been renting for years and would like to not rent anymore while simultaneously beginning our REI career. We're either looking for something that we can live in and also do work to along the way, a SFH/townhouse that is move in ready, or a duplex where we can rent the other side out. Most importantly we want something in a safe area.

If a BP member out there can reach out - we'd like to meet with a realtor who knows the area and can help.

Thanks!

@Joe Splitrock - 

Thank you for the advice on being cautious. I am doing my due diligence now to verify his past work. As far as ensuring he is charging accurately for the work - what's the best way to know? Should I have him provide a list of the work needed and then come on here and post what he's quoting for the job?

Thank you,

Mason

Hello everyone:

So today is day 1 on BP. I've been listening to the podcast for about a month now and am very excited for what 2016 holds. Before I get to my questions - I would like to provide some background as to what has peaked my interest in investing. 

Today I live in California and work in software sales. Back in October my wife and I went on our 5-year anniversary trip to Mexico. While on the trip we met another couple our age (early 30's) from Ohio and we hit it off. We spent the entire week with them, did a few excursions, dinners pretty much every night, etc. Our occupations came up in conversation and I learned that the guy is a contractor and that he flips houses in Ohio. I became very interested and bombarded him with questions. Basically he's done around 20-or-so flips and has about 8 rentals that he renovated and is managing. Towards the end of the week I asked him if he would ever be interested in partnering on some deals. He said he'd done some partner deals before and that he would be interested. I told him I have minimal access to cash (about $20k) I could put in. The majority of the properties he buys are sub-$50k foreclosure properties that he, on average, puts about $10k-$15k of work into, and sells for $100k+ (again, on average). 

Now I don't know a lot about real estate at this point, but I know enough to say that the market I live in would make it very tough for me to begin this journey on my own here. This is why I am choosing to start with a partner in an area that's a little easier to find affordable properties. 

About two weeks ago this couple flew out to California for his birthday to spend the weekend with us in San Francisco. I knew this trip would be good because it would allow for them to see how we live, and for us to further discuss partnering. He just finished up and has rented the two houses he bought the week before we met them in Cabo and is now ready to find another property. We've started an LLC and are in the process of putting an agreement in place. He and I discussed going in 50/50 on the property and then paying out him/his crew for the reno work and then splitting profits 50/50.

I would like BP's advice on anything I should know/do/consider in my first deal.

I told him I'm interested in flips to start so we can build some capital in the businesses name quicker and then we could look more into rentals - is this a good approach? If there's a solid deal on a potential rental would it be worth it to put in the only $20k I have for a slower return and then look to borrow against that home once ready for another deal?

I'd like to go about this without loans if possible and realize that can slow me down a bit - but are there significant advantages to building a portfolio faster with the debt?

What else should I consider?

Thank you in advance for your responses!