All Forum Posts by: Peter Mckernan

I would flip as well, as Chris mentioned. The hard money route is good, and that is something that I would for sure try to see what the best numbers from the lenders you can get right now. The one piece of advise I would give to you from going through the the hype of 2020, 2021, and 2022 till rates went up.... Then the market leveling off heavily come 2023 and 2024 compared to a market like 2021.. Have more reserves that you think you need and also be prepared to hold a property for longer than you may think as well. There are ups and downs, and as you have been in business for 9 years till you closed it, there are unexpected turns, or expenses that you really do not see around the corner. I have seen this first hand with my own flips to my client's that have been in the business for 25 years flipping. 

Go flip, run the numbers and even partner with someone, a mentor if need be to really get you started on the right path to success! 

Hello all! 

We are hosting fix and flip review on one of the flips we found for a client out in Riverside! Would love to show you how we found it on the MLS, how we got it into contract, how we sourced the contractor, and how we ran our numbers to make it make sense! See the link to the meetup.com description!

https://www.meetup.com/cfbc-oc-ca/events/304693352/?utm_medium=referral&utm_campaign=share-btn_savedevents_share_modal&utm_source=link

The typical experience that I have had flipping homes with solar and also helping buyers/sellers on sales with solar is that the seller ends up having a request from the buyer to pay the remaining balance off from the solar debt on the home without increasing the value. There were some years ago when buyers would just take over the lease and that is it, the value stayed the same and it was transferred in escrow to the new buyer if they qualified. 

The times have changed on this though, the buyers have become very skeptical on solar, and have demanded that the balance be paid off by the seller at the close of escrow. This is without increasing the sales price either. There are some reasons for this and why it is happening, the solar payment/bill increases incrementally each year until it ends, the company of the solar panels does not have great support, and the last thing, it is not a massive savings in eyes of the buyer with these burdens that they have to go through with an intense contract to sign too.  

This is where a mentor would come into play big for you! Go to meetups locally see what others are doing and meet these people for coffee. You need to tap into someone that is local to you and is already doing this to shadow them till you can start doing this on your own. It might take a couple of years for you to really be in a place to go on your own, but a mentorship, internship, or even just getting hired at a larger flipping company would be a huge value to you just getting into this all! 

Yes I agree with Bruce, I had one done about 2 years ago now for a client that got me fully on board with having my clients do them all the time. The client did the scope, they found a branch in the line, and an offset. The plumber came out while in escrow stated it would be $8,800 and we got it covered by the seller to do it. 

The other example, one of my agents did one. There was an offset, but it was just past the service box for the home (city responsibility) as we saw it. The cost was going to be $13,500 for the whole project, and the buyer nor the seller was willing to pay for it. The agent contacted the city and they denied the responsibility at first then with push the city took the whole project on and saved the seller and buyer that cost.

@Jorge Vazquez

I would have a landscaper visit the property.. An arborist would be who I would ask, this is a tough guess for anyone not there to confirm these can be moved with no issues.  

This comes with time! This is something that will be hard to judge at first but once you start getting the hang of walking a property, and doing the flips you will be able to estimate off the top of your head when you walk into a place. I would pull up outdated properties on the market, and walk the properties with the contractor to get bids on what to do.. That would give you the base for how to start estimating rehabs. If it is not a contractor that you will be using I would pay this person for their time. I would repeat this with properties and contractors you want to use in that area to know PPSF of the flip and know the numbers through and through. This will boost your confidence 

Usually, the city website has all the utility companies for the city that you should be contacting. If you went directly to the agent listing the property then ask them, and if not then ask the agent that represented you for the sale to get you the contacts for it. 

I would agree with @Ashish Acharya, #1 is the best answer to the question on his response in the reason it would not be good to use an LLC on a house hack until you move out of the house and call it a true rental.

I would search local meetups.. San Diego will have a ton to go to with how many people are in the area investing. You would go to meetup.com and search, and also you can go to the top tool bar and search events as well on BP.

Meetups, search for large teams working with investors in your area (you can do this on Zillow) or on this website. You can find a lot of wholesalers on this site in your area too.