All Forum Posts by: Patrick Philip

Patrick Philip , my friend the choices can be infinite but,it should indeed be narrowed down.If you are rehabbing for flipping,you should use the best flooring you can afford and is appropriate for the neighborhood( don't overbuild and overspend).Carpet(bedrooms only)and cheaper laminate is for rental properties while something special like engineered hardwood,high quality tiles,or whatever the neighborhood enjoys the most is best for flips.I would seriously consider hiring an interior decorator who is fully familiar with the types of properties and neighborhoods you wish to invest to take you shopping and show you what color schemes go well together and what fixtures are popular and affordable for your business.You only need them once at it shouldn't cost you more than a few hours consultation fees.

You said in another thread that you read the BiggerPockets flipping book.  Re-read the first 5 pages of Chapter 12...

a great plan leads to great success

you got this

you have a property yet?

if not go out and get you one and then make sure you stay on top of the little stuff- schedules and contractors- that's the stuff that will eat your lunch

don't waste your money on insider news- get yourself a project for you first- then try something bigger- a flip- see if this is something you want to do- its not all about the money you got to like it or you will never make it- like any other job either you love it and stay or you hate it and walk

it will definitely show up

I know people that thought they were going to get rich doing real estate and they live with their in-laws

make a plan and ask yourself some serious questions before you jump in

enjoy

Mentors don't charge for their services.  Coaches do.

Mentors are there to help you when you have questions, get stuck or need some advice.  There are lots of people on this forum who can provide those services at no cost.

If you're looking for mentors, we're here. 

If you're looking for a coach, expect to pay a decent amount, and I would recommend trying to find someone in your local market (real estate is local).

Asking others if a house is a good deal is a dangerous way to go about it.

How I go about a house I like.

I see the listing (usually with photos). I use the asking price to start, and immediately get a good handle on ARV. These two numbers are probably the easiest to come up with (well, one is given to you, the other is based on local sales).

Then I take old budget sheets (some from past flips now, at the beginning, I created full blown spreadsheets with every screw, nail and board and have budget prices). I decide what I "think" the house needs, and then fluff it with contingencies.

I then calculate holding costs, buying costs, selling costs. I plug it all into a spreadsheet and it gives me a "profit" number. With this number (before I ever see the house) I decide if it's worth it. If the profit number says $10,000, but it's only a $100,000 house, I'll go look. If it says $10,000 and it's a $300,000 house, I will probably pass.

I schedule a walk through, I take lots of notes (photos of things I want to remember or re look at) and then head back and revise my numbers.

With my new more solid repair estimate I can work backwards. Now I take the ARV, holding costs, rehab costs and then subtract that all with the profit I want to make, and I get my offer price. Sometimes I will offer less than this, if the house is hot, I will go right in at that price.

This is MY way. Everyone does it different. I have found deals on Zillow (house never showed up anywhere else), MLS and through word of mouth. I have NEVER done a deal where someone else told me the rehab costs, especially when that person is the one sellong the house.

At this stage of you feel you are ready, it is pointless asking about each deal on here. Go buy one and get your hands dirty. Come back and tell us how it went!!

You say you've read the books, but your comments and questions would indicate otherwise.  You say you won't drive for deals because that's the wholesalers' job. You say you know more than we think, but you aren't sure what questions to ask.  You say you've been studying for years, but you don't know where to start. 

Do you have your financing in order?  Have you looked at 100 houses in person?  Have you practiced creating SOWs and estimating rehab costs?  Have you gotten a purchase contract written up by a knowledgeable attorney?  

It sounds to me like you're looking for the easy way, as opposed to being willing to put in the work to really learn, from the ground up. 

We can't help with that.