All Forum Posts by: Andy Bankston

Like Mike said, you should have made an agreement beforehand. I would structure the deal so that each person's percentage of the all-in amount earns the same percentage of the profit, like your first scenario above.

Example: I buy a house for 40K, put 20K towards rehab and holding costs. My partner also puts 20K towards the rehab and holding costs. All-in amount is 80K.
My investment is 60K. 60/80=.75 or 75% ownership.
His investment is 20K. 20/80=.25 or 25% ownership.
House sells for 120K for a profit of 40K.
My Profit = 40K*.75= 30K
His Profit = 40K*.25= 10K

I think you're on the right track, hopefully you get it worked out with no hurt feelings.
Andy

I'm afraid the answer to this is "it depends". Like so many other things in REI, the answer to this will be specific for your area. Since I don't know your area, the only way to find out how much you can save by cutting out the GC would be to either A. Ask other people in your area who have done projects with and without a GC to try to get a ballpark. B. Ask the GC what his markup is. I doubt he'd tell you (or honestly tell you) so you might consider C. Get quotes from each specialty yourself, total them and compare the cost to the cost of the GC.

Then you have to decide if it is worth $X to you to have the GC take care of everything. If the cost is significant then you might consider managing the project yourself if you have the time. If you feel the cost is acceptable then you can consider going with the GC so you can continue to learn the ropes.
Additionally, if the GC's subs are independent outfits (meaning they are not part of the GC's crew or employees) and do a good job, get their contact info so you can consider hiring them without the GC for your next project.
Keep us posted,
Andy

Glenn, if you are not doing a substantial rehab then maybe you could consider cutting out the overhead of a GC to improve your profits. For a simple garage unconversion and light rehab you should be able to find some referrals, check out their work and hire the subs yourself. Just my .02
Good luck,
Andy

The search feature is located at the top right hand corner of the webpage. Type in your question or search terms, then click the blue "search" button beside it. You will find many threads addressing the exact same question you're trying to answer here. Read them and you'll find great information from many experienced investors. Good luck!!

Welcome, Jeff. I'm just down the road in Kennesaw. I'm doing some flips right now but multi-family buy and hold is where I want to eventually end up, so I look forward to hearing about your deals.

No problem. You can easily change the products/skus/prices to suit your needs, just make sure the formulas stay accurate. Also, I think I forgot to protect the formulas on the new version, so protect them or be careful.

I deleted the original file and fixed a few bugs and problems with some of the cell codes. The new updated file is now uploaded. I think around 125 people downloaded the file, so please delete that one and upgrade to the new one if you'd like. Sorry I missed the problems with the first file. Here's the new one: https://www.biggerpockets.com/files/user/RoadRacer/file/walk-thru-rehab-analysis-with-sku-sxlsm

And please let me know if you find any more problems!

What James said. And everybody else. I know you work hard and have a busy schedule, so thanks for donating some of your time and knowledge here!

I did a single member LLC in Geogia, and it was incredibly easy. All online.

Happy Birthday, Steven Hamilton II, Hope you're feeling better. I shot you an email. Take care