All Forum Posts by: Ryan Saldanha

@Michael Oliver

One LLC

A “builders risk” (homeowners policy for flips) for each flip

An umbrella policy covering your whole LLC

@Ashley Wright

Two things

1) Don’t use a property manager. Why? Because you’ll never learn the ins and outs, ups and downs and more importantly you need to find out if you love real estate because rentals are a get rich slow plan.

2) MOST important! use www.rentometer.com

to accurately gauge the rent. It’s the GOLD standard.

Good luck!

@Adam Rudolph

It’s never too late to start. Flipping is profitable in all cycles of the market. You’re always buying properties at discount relative to after resale value!

Start with a small cosmetic flip!

@Vennis Hong

I would look at lending club and prosper. Annualized rate of returns between 6-8% after loses are accounted for.

I know you need the W-9 and lien waiver.  Is there any other forms that you need your contractor to sign when flipping a house?

And as far as the W-9 and lien waiver.  Can someone post a link to the most updated forms available?

Thanks much.

Well said! My point in this post was to let other investors (mainly novice and beginners) know this large wholesaling company -Networth Realty -- across the country that markets in every major city-- has sent quite a few deals in recent months that are off not by a meager amount, but rather quite large amounts in their ARV & rehabs.

@Jason DiClemente

There is a difference between a wholesaler “trying” to make a property look good and a wholesale putting in details that are deceiving in their marketing.

In my experience, NetWorth used a general contractor to provide inaccurate detailed estimates in their marketing emails for a full rehab. Most wholesalers leave this information out, but NetWorth Realty wants to brand itself as a one-stop solution.

Recently, as I mentioned, there was a SFR with a major foundation issue that they marketed with as a 55k rehab budget and in their marketing materials they said the estimate was done by a licensed general contractor. A proper licensed general contractor doesn't miss foundation issues and the rehab doesn't magically double.

I bought 2 homes from NetWorth Realty, one in Brandon & Plant City and rehab budgets for both went thousands and thousands more on a medium sized block home. The contractor that used to do THEIR estimates and the one they recommend to my wife and I didn’t complete the job and the homes could not pass inspection. Both homes came out to be about 18-20% over their "estimate" with the licensed general contractor.

Obviously they market to the novice investors with calculated ARV's and estimated rehabs built in. But because they require you to use 212 loans within the first 48 hours you typically have to move fast.

**Recently was enticed to a view a South Tampa pool property that had an estimated 55K rehab cost. After personally reviewing the property and noticing an issue with the foundation of the pool and pointing it out to them, (I am not even a contractor or an architect and noticed this) they came back two days later with an estimated rehab of 95K!!! Not even off by a couple grand but nearly double the cost! HA! This goes to their lack of professionalism and other entities involved with them (the contractors coming to draft the estimates). After this newly discovered problem and knowing no investor would waste their time on the property, Networth realty decided not to purchase the property from the owner and dump it back to him. 

This is not some fly by night wholesaler. They have built a national reputation. Here's the thing- Don’t trust their non-stop marketing emails. Your rehab budgets will almost certainly go over, sometimes by the thousands and sometimes by the TENS of thousands. Feel free to PM for additional details. Be very very careful when dealing with this company.

@Tyler Rusomaroff thanks. Since you’re in Florida, can you recommend no desk brokers?

@Ken Calvin turned a little profit. Who was your GC? The GC that was recommended by NetWorth Realty also ‘conveniently’ forgot that appliances were included.