All Forum Posts by: John Perry

@Bill Brandt we would be interested in JV opportunities. We just pulled the plans on 5-plex / town homes that we're going to start in the next month in Pahrump. Very keen to do this in an opportunity zone.

We bring value to the table as a Fully licensed builder and we can also bring some capital.

Let me know if you would like to connect

@Kevin Romines Great feedback. Thank you

@Jay Hinrichs Thank you for the detailed info. We are still working on closing out the books for 2018 but as soon as I am finished with that I’ll start working on the local banks. We have a relationship with a couple of them and now that we have a stronger track record will see if they’re willing to play ball.

Everything we have done to date has been single lots. The 50 lots will be in one neighborhood. We own half the lots in the neighborhood and another party owns the other half.

I am also in Summerlin, (North Summerlin) it would be great to meet up for coffee next week. Will send you my number. Thanks.

Thanks @Caleb Heimsoth . Forgive the silly question, but how do I find them? Under the HML route we pay 12%. Would Private get us in the 8% range?

We started flipping many years back and migrated into building new homes. We have built 30+ homes buying individual lots and typically have 3-5 in progress at a time and have sold most before they are finished. For financing, we use our funds and HML. We have now acquired 50 lots in one development and would like to move faster, building 10 - 15 at a time to get better economies of scale. Ideas on where we could raise $2M. Now that we have established a solid track record looking to move away from HML and find more reasonable sources of money. Thank you.

I assume you mean how many wholesale deals. Focus on finding one great one to start. We did exited 17 flips last year and just a few thus year with no me acquisitions since the good ones are difficult to find in Vegas. We are acquiring land and building new construction instead. That said, if you found ten great deals we would buy all of them as long as they pencil out.

Welcome to Bigger Pockets...a phenomenal resource with tons of helpful people.   We have done a couple of deals with wholesalers in Vegas, and had one to thank for our biggest home run last year.     We look for properties that require substantial work vs. lipstick jobs.   The kind of projects that scare away many folks.    (We do most of the work in house so have a slight cost advantage)    Also, we look for projects with something special...like larger lot or in a up and coming downtown location.    

Just go in with the expectation that it is going to be an incredible amount of work with very little to show for it in your first few months.    I have seen many people work at it for a couple of months with no deals...and then they quit.    Definitely not a way to get rich quick....but possibly a way to get your feet wet in RE investing.  

Wow @Kristin Davey you stirred up a lot of opinions with your question. I have lived in Vegas for 23 years and closed 17 flips last year so have some thoughts on this if you want to connect. The fact is that good flips are getting very difficult to find for those of us that do it all the time. However as others have stated you have tools accessible to you as a first time home buyer that pro flippers do not. I pay 12%+ for my HML money where you can get it at much less....so deals that do not pencil out for me will pencil for you.

I love the idea of home hacking for your first one.   I am doing a hack now in Summerlin as I need to move out of my primary to do a 4 month renovation.   Instead of renting I bought a house for 530, invested 30 and will sell for at least 630.    Not great numbers, but I am living in a house for free for 4-6 months and should pocket a few thousand when done.    For you it could be moving every two years for a while....buy, live, fix, flip, and pocket tack free cap gains!   

Many years ago my biggest mistake was not jumping into this sooner.    I analyzed for years...then finally WROTE down the goal on my wall to own my first investment property in 3 months.   I met that goal...and has been a great journey ever since.

By the way, your design skills (assuming they are good) will play a key role in your success.    We have great designers and now stage every home...it makes a huge difference.  https://www.lvhomestaging.com/

Good luck

@Robert Adams do you know if  that is also how OpenDoor operates...with the 12% Charge and the 7% commission?    It makes sense as I went through about 20 of their deals in Vegas and was shocked to see the delta between the OpenDoor purchase price and their listing price was very small....as low as 2%.   However given they make their money on the 19% in fees it makes sense.    

We tried competing in this space, but with $400M in funding behind them it is very difficult to match their marketing might.

Thanks @Bill B.   The opportunity zones seem like a great.....opportunity.    We have been building single family, but had a very successful fourplex flip last year that sold in less than a week after it was complete.   I will do a little more research on them.    Always keen to find new partners for deals if it makes sense.    For example a land owner where we do the development and share in the upside.

@Marty True - I love Miami!   Happy to connect and discuss opportunities in Vegas.   Let me know if you are going to be in town, else can connect on the phone.