All Forum Posts by: Rick Fonseca

 Thanks Hattie,

Yes, that is exactly what I am talking about. Are the profits in danger of being taken away at time of sale. In other words can the profits get sent to the State?

If buyer has past due child support, and at time of sale are the proceeds from the sale in danger of being taken away?

 Thanks for the input J Scott, I have both of your books "the book on flipping houses", and "the book on estimating rehab costs". I started reading about fix and flipping and I have not gotten to rehabbing costs.

I'm finding that the competition over here is fierce and if you don"t act quick you won't be able to compete. If this offer is accepted I hope it won't be a lesson that I will regret.

 Thanks Curt, hopefully it won't be a huge ding.  You live and learn, right?

 That's a big % considering that I am already over the suggested 70% rule. Now I guess all I can do is hope for the low 10% since the offer has been submitted. 

Thanks for the article

For the past month I have been driving around the valley looking for houses that seem to not be in the market as of yet. Found a couple of houses and I made an offer on one of them.

The offer that I made looks like it is going to be accepted I actually went over the 70% rule ( 75% ARV ) but here is where I am troubled and I need guidance to ease my mind.

The house in question is a 2 bdrm with 1250 sq ft. Comps around that area have sold for 170-190K but these have been 3 bdrms with approx the same sq footage.

Do the appraisals take only the sq footage of the homes or do they account for the bedrooms?

Your input and guidance is greatly appreciated.

I don't know how to find the link that it is on but I can tell that it was posted on this date

Jul 16, 04:26 PM.

Well due to lack of experience, I can only tell you what I have read here in BP since this is where the majority of the education that I have plus also reading the book on Flipping Houses by J Scott.

Walk the house, calculate all expenses that it will take to renovate. Stick as close as you can to the 70% rule including all costs to repair so you will be at 70% of the ARV.

From everything that I have read, it is becoming real hard to buy a home at those figures due to heavy competition in this business. So with that in mind I think that this is a good deal.

Us newbies really have to try to stay as close to that rule for the reason that we are inexperienced and anything can come and smack us right in the face.

Thanks Steven,

I will just have to wait and see how it all falls in place. No, we did not form a partnership on paper, I think that you are correct on this and when this deal finalizes I will definitely speak with my partner and make it all legal. 

This way everything is on the up and up and we both will know what to expect if something goes stray. This will also create a better working environment for the both of us and maybe we can make a long term partnership.

Also with my anxiety, I guess experience takes care of that issue especially since a lot of these offers will not be accepted.

Thank you for your great advice. I have taken to heart all of this information provided here in BP along with all of the advice given here by all of you.

I decided to go into rehabbing homes because that fits more my style plus I like the challenge of taking an ugly house and making it better for everyone involved

I want to tell you that I have known a Real Estate agent and he is like a faraway friend, (you know a friend of a friends but he's also your friend but not close) So anyway, to my surprise he has been finding homes and assisting some rehabbers in my neck of the woods. I have partnered up with him and we have placed an offer on a single family home.

I am anxious and excited, I hope that our offer is accepted. I am probably going to drive my partner crazy just waiting for a response.

I will let you know as soon as I get an update..