All Forum Posts by: Mike V.

If I have 20 showings and no offers I lower the price, if it has been 30 days and no offers I lower the price and if I have been getting a lot (>50%)of "price too high" feedback I reduce. I usually reduce in 5 or 10K increments based on how bad I need/want to get it sold. I was very agressive on my last two just to make sure I got in under the April 30 deadline.

Trying to renegotiate the price after you found out you offered too much is bad for everyone involved. I just lost a deal that a wholesaler had brought to me. He thought he could go back to the seller and talk them down more. The problem was he told me we had a deal but didn't sign the contract. Every day he had a different excuse until finally I tracked down the actual seller and found out there was no way he would sell it that cheap. In the end, I didn't get a property I had already schedule into my contractors timeline, the wholesaler pissed off the seller so much that he gets nothing, and the seller (an heir) is very frustrated with real estate investors. He is now going to just sit for awhile.

I too buy the 2 gal Behr white ceiling paint at HD. Its cheap, easy to find, and is durable. Painting walls and ceilings all one color really gives a cheap appearance.

Congrats, I think the contacts that you developed on this deal are just as big a success as the deal itself.

My first tenant in my nicest home (nicer than mine) was a single mom with 3 kids. She rented from me for 15 months and then bought a house. I remember talking to her when she was moving out and she was commenting how she was so glad she waited that 15 months to buy. Her life had returned to a reasonable sense of normalcy and now she had 15 months history of child support and rent payments (her bank did check with me) that allowed her to get a good loan. I know if she were here to give you some first hand advice it would be to wait it out.

St. Louis, MO-IL
first quarter, 2010 – first quarter, 2011 -2.6%
first quarter, 2011 – first quarter, 2012 +0.4%
Good news for me, I plan to do more buying than selling this year.
I noticed on google business this morning that both Austin and Houston TX are reporting lower unemployment. Looks like Rich is keeping everyone busy down there.

Well, I hope your right Frank. My CPA claims I don't have to pay Payroll taxes on my flip income since it is not my primary employment. His take is that if I would quit my day job and do flipping full time I would then be responsible for payroll taxes on whatever income I paid myself from the company but now all flip income is treated as short term capitol gains.

After doing several my vote would be a good jackhammer. A concrete saw is an awesome tool but will create an incredible amount of dust and a lot of exhaust fumes. Most people are not going to care if you have a nice straight cut line on a basement floor. I use the saw in high visibility areas like driveways/sidewalks etc if doing replacement of just a section or to cut in joints in large pours.

FHA appraisers can and do require you to fix a variety of things including roofs. On my last home I sold to a FHA buyer I made it through the first appraisal unscathed but the second one (just two days before closing) required some additional drain tile and catch basins around the basement walkout. I rarely work on my own projects but I was out there that night in the rain digging trenches.

If you can sell it for 80K and rehab is only 5K then your not terribly off by the 70% rule (overpaid by 6K). You should still turn a profit even with realtor commissions. Even if you break even you are doing better than many do on their first deal.