All Forum Posts by: Richard Carlton

Welcome to BP, Shane. Send me a PM if you are interested in chatting.

Rich Carlton

Ryan, 

Your numbers do not seem unreasonable.  I would recommend looking at ways to shave costs if possible.

Have you ever thought about becoming an agent yourself?  It was because agents in my local area did not listen to me or my desires that drove me into becoming a Realtor.  This was to buy my first house, not even an investment property.  Now it is very easy for me to put together the offers that I want to offer for properties without the assistance of an unwilling associate.

Heed Tylers' comment that the margin is a bit thin thanks to the unknowns that are often found during your rehab that can easily become budget busters.  There is a lot of truth in that statement!

Good Luck,

Rich

Yes,  in Maryland average profits, at least in my personal experience with my flips, is in the $30,000.00 range.  There are other variables to take into account and by my experiences some of your estimated costs are low.  At least as the Realtor for my own flips, I can set my commission so I can make up for some numbers at time of sale by up to 2%. As a rough number in calculations on the resale side of the transaction, I use 12.5% for sellers costs at settlement. 

Due to the current competitiveness of the local market the 70% rule is a hopeful number that is a rough guide and not written in stone.  I walk away from more potential flips than I purchase due to deals that on the computer look great but when viewing the property in person  more expensive repairs are often found. In Southern Maryland, in a lot of instances, there are hidden costs of a well or septic system replacement that also needs to be accounted for when running numbers on potential purchases.

Home Depot and Lowe's both have a very helpful Pro Services desk. I recommend starting there as the majority of your everyday materials will come from such a store and they have good return policies.  Floor and Decor is a great place for tile combined with the selection and the savings over HD and Lowe's makes this store a good resource.  Google Southern Sales and Auction in Baltimore. You can find bargains there. If you want a recommendation for a granite guy, PM me. Carpeting is more of a deal hunt but if you have a project in Prince George's, Calvert, Charles, or St. Mary's  Counties I have a reputable supplier that I am happy to share.

In all of the properties that I buy they are marketed as is, an inspection contingency does not fly in most cases so I don't spend the time or effort of putting one in my offer. It truly depends on what you are buying and the conditions of the sale. 

I am experienced enough to take a look at houses and know what I am getting myself into and what to budget for repairs before making an offer.

If you are uncomfortable with looking at the property and developing an idea of cost of repairs do you have a trusted contractor that can help or mentor you? If so, that would probably be your best solution until you feel confident enough to look properties over by yourself.

@Laura Engel Good Luck and keep us posted on how things are going with your project.  Always remember that if you have questions you can always ask us here on BP!

@Laura Engel Congrats on getting over the first major obstacle!  Take good notes to document materials, lessons, and decisions as having a notebook for such can potentially save you time and mistakes in the future.

Are you looking for a specialty carpenter?  Send me a PM with details of what you are looking for, I have different crews that might work out for you.

Some details are missing from the whole story but based on the numbers that you provided she will be a renter for a long time.  I request that you share your source of affordable properties in Montgomery County, as all that I can touch in Southern Maryland for a price that is affordable on a 30-35,000.00 salary is trailer rentals, rooms for rent, and empty land that is wholly unimproved.

My best advice is to help Jane understand that due to the economics of the region that home ownership is not a reality in her current position and that she needs to focus on her children as you only have the time with them once.  If she can work into her schedule college or some other education that can help her advance in her career or to change fields do so.  That is the best advice that you can provide.

Devlin,

Talk to a real estate attorney.  They will be your best advice in wholesaling in Maryland.

Rich