All Forum Posts by: Neil Metzger

Welcome to BP Jeremy, I am in Leesburg VA and flip properties up in pittsburgh. It is an awesome area in that properties are much less expensive there then down here and you can get a nice return. Rental market is great to. Best of luck on your endeavors...

Oakmont, Lawrenceville, Observatory Hill. I have worked on flips in all of the above. Ping me if you would like to discuss it in more detail.

Corey,

Your enthusiasm is great, but to Eric's point, the real world is a lot less structured. You ask good questions, but you cannot plan for every contingency. I own a company that flips houses, and we are here in Pittsburgh. I am hoping to acquire 3 new properties in the Feb/Mar time frame. If you find a good deal, let me know and I can work with you to get it closed and get you a commission. Just having some experience with the process from beginning to end will be more helpful to you then any amount of research you do. If you are interested let me know and we can figure out a commission to get you whole if we close on a house you find. 

Yang, I do flips and use subcontract work like this to keep them busy. I'll PM you and if you want to talk in more detail we can. 

Definitely a small world, I flipped the house three doors down from you and did pretty good on it.  The title of your post says this was your first flip,  you seem to contradict yourself a bit in the subsequent posts.  Why the disconnect? 

Hello @Jing Hoyer,

I did property management for a couple years in that area for a group of folks that had mostly duplexes and triplexes. Great market still to acquire rental properties. I can give you my $.02 if you want to message me. I recently started a property management business in Pittsburgh, and we flip houses as well. Would love to talk in a bit more detail if you are interested.

Bob, pretty sure from the IRS standpoint you owned a primary residence,  did some repairs and sold the property, so as long as you have not used this exclusion in the last 2 years you can use it for this transaction. Did you receive a tax form 1099-S from the company that had the mortgage? As long as you filed your taxes and reported the sale and included the 1099 you should be fine. If you don't report it, you may get a letter in the mail from the IRS showing that there was a discrepancy on your tax return and that the money is taxable; I am not a tax expert, only answering this question because I just helped a friend out with a situation where she did not report the sale of her home and had received a nastygram from the IRS. It was easily fixable.

Pittsburgh is a little different with out toilets in the basements and french fries on our salads, but nothing unique about PA from a tax standpoint that I am aware of....

@Bill Gulley, i like the idea of using our GC license and setting up a quick contract. That is simple and pretty easy to set up with a collaborative seller, which we have here

@Jessica Zolotorofe, sounds like a good approach if we were talking about a longer delay, but good to know about that as an option, I never would have thought to explore that possibility. 

The short answer on not closing now is that I have a private lender partnering on this deal (mostly the rehab budget) that is assisting someone on their end with a traditional purchase of the property (Traditional Lender). If this was purely my deal, I would have already done it. I am trying to get to the point where I am closing on & selling 1 house per month; the only way I can reach that goal is to work with a group of private money lenders. I hate going back to my partner on this and telling her that we need to restructure our deal. So long story short, better to eat the labor costs I have for a couple weeks and chalk it up to the cost of trying to aggressively scale the business. 

 That makes sense, so an issue to be concerned with would be the owner deciding they no longer wanted to sell the property after we had put time and materials into the renovation.

I'm expecting the consensus to be that this is a really bad idea, and I'm kind of a three strikes and you're out sort of guy, so appreciate all three of your responses and the quick feedback.