All Forum Posts by: Patrick B.

Good stuff as usual from you guys. Thanks for the insight.

Jon, I hope your budget doesn't run too far over. Any particular reason that it might run over? Keep us posted. :beer:

Have a good one,
Patrick

Yea I certainly realize that these projections are not set in stone and are not the end all, be all. I do think they can be helpful to provide a very rough estimate of potential holding time and various costs, to consider while sizing up a potential investment.

What accounts for your 7.6% of closing costs? Here in Indianapolis, I believe the average is closer to 6%, with the selling and buying real estate agents each getting about 3%.

Thanks for the feedback.

Hey there,
I just finished reading a book in which the author laid out his average buying, holding, and selling costs for his rehab/flips. He says, on average, his expenses over the years have looked like this:

Buying costs are generally 1.5% of the selling price
Holding costs (utilities, taxes, etc) are usually 1.5% of the selling price
Selling costs are generally 6.5% of the eventual selling price, after repairs

He projects the months required for rehab work (holding time) with the following formula:

Rehab cost per square foot, divided by 10 + 2.5 months to market & sell

Do you guys think these numbers are accurate? I would be interested to hear how these projections stack up with your personal investment experiences.

Have a good one,
Patrick

I've been reading these forums for a few months now but just registered today. I've been thoroughly impressed with the amount of thoughtful insight offered up across the different forums. I look forward to reading your posts, contributing what I can, and asking many questions in the future.

My main interest is in rehabbing and flipping single family homes. I'm also interested in acquiring single family homes and keeping them in my portfolio as rental properties.

I would be interested in hearing your criteria for deciding whether to flip a home or to hold it long term.

Thanks again for all the helpful advice. Have a good one.

- Patrick

[size=9]Let me get this straight ... most lenders will not provide financing to an LLC entity. They instead require an individual to sign on the loan and provide sufficient collateral. This much makes sense.

My questions:

- Do the majority of short term flip investors borrow in their own name then?

- What are the benefits of transferring the property into an LLC after doing the financing in your own name? How does this put the investor in any less risk?

Thanks a bunch for your insight and comments. Much appreciated.[/size]