All Forum Posts by: Scott Carrillo

@Brian Pulaski

Thanks for taking the time to check some comps for me.  WIth comps having such a large range it is tough to know what it would sell for.  I will be sure to reach out to someone local and get a first hand look at these properties before I make the plunge.

@Tonda Hill

Yes please, if you are in the area please let me know what the neighborhood is like.  I appreciate it. 

@Keith Jourdan

Any particular insight on which street is the best of the worst?

Scott

Hi there, I have an opportunity to buy some properties that were purchased from the last Detroit Auction, the list of properties and prices are below.  Is there anyone in Detroit that can tell me which properties would be best to flip or which to stay away from?  II do not know what the inside for each looks like currently but just for argument sake lets say each property is in the same shape and needs $20000 in repairs. Before I purchase a property on this list I will have a video shot for my due diligence and would be more than happy to share once I narrow it down. 17303 SANTA BARBARA,DETROIT, 48221 for $51000 10775 ROXBURY,DETROIT, 48224 for $14000 11390 ROXBURY,DETROIT, 48224 for $14000 2682 WEBB,DETROIT, 48206 for $19000 11331 MARK TWAIN, DETROIT,48227 for $23000 Thanks for the replies, Scott

Hi there,

I have an opportunity to buy some properties that were purchased from the last Detroit Auction, the list of properties and prices are below.  Is there anyone in Detroit that can tell me which properties would be best to flip or which to stay away from?  II do not know what the inside for each looks like currently but just for argument sake lets say each property is in the same shape and needs $20000 in repairs. Before I purchase a property on this list I will have a video shot for my due diligence and would be more than happy to share once I narrow it down.

17303 SANTA BARBARA,DETROIT, 48221 for $51000

10775 ROXBURY,DETROIT, 48224 for $14000

11390 ROXBURY,DETROIT, 48224 for $14000

2682 WEBB,DETROIT, 48206 for $19000

11331 MARK TWAIN, DETROIT,48227 for $23000

Thanks for the replies,

Scott

Hey guys, 

Thanks for all the inspiring posts. I just wanted to let everyone know that I will not be doing a buy and hold with guru since his fees were ridiculous. We have decided to go with a JV 50/50 split(no fees) as this is the first deal I would be doing with him. Going forward if we decide to do more business I would ask for more of the share since it is all my money and he has no risk like everyone has said.

@Account Closed Thanks for the laugh, actually I don't think we could get $1100 for rent, more like $950. Anyways I have decided to not go with the buy/hold strategy with guru. I will go with a 50/50 JV where he doesn't charge any fees, we just split the profit 50/50 but I pay for everything. He acquires, rehabs and markets the property. We will see how it goes and I will update the post as soon as that happens. The auction ends the 19th so we hopefully have a property on the 20th and I will bring everyone along for the ride.

I wanted to update everyone and thank them for their insight.  I told guru that his fees were ridiculously high and told him I would pay 4k for acquisition and 10% of the rebab for his rehab management.  He came back with 5k acquisition and 4k rehab.  So guru came down 6k just from one text. Very interesting...

He told me he is not offering a service model like the percent of rehab and wants a flat fee. Not a big fan because like Brian said what if it's just carpet and paint. I am not paying 4K for him to make 2 phone calls. Anyways I told him I am not interested in the offer he came back with and would like to test the waters with him for a 50/50 jv deal where he doesn't have any fees. I pay for everything and he takes care of the rehab and acquisition and we split the noi 50/50. What advice does everyone have for me on my first JV deal?

Scott

@Brian Pulaski First let me say I have had 3 face to face meeting with guru. There are no guarantees but there is evidence since he built a program of which properties are good buys in established or up and coming neighborhoods. Guru gave me a list of his top golden nugget properties in the upcoming auction and told me to pick 10 so we can win 3. I pick the properties. He has contractors in place and I would tell him what finishes I would want. Everything will be documented in google sheets so contractor fees will be transparent. He is neogiatable on his fees and I know he hit me high so I will hit him back at 10% of the rehab costs. If I don't like what he has to say we will just do a jv deal. He likes the flip strategy and I want a buy and hold.

@Brian Pulaski the 5k fee is to find the property, win the bid and move through closing. I agree the 10k fee is a bit much for carpet and paint. This is where I will need to negotiate price. I know he hit me hard but is expecting a counter which a I will come back with 10% of the rehab budget for his fee.

@Harrison Smith thanks for the reply. As far as purchase price, rehab costs and arv that's all up in the air as it all depends. Guru is estimating purchase price to be no more than 40k, rehab is hard to say as he cant get inside the property to get an estimate. 20k? We won't know if drywall is up or if it just needs carpet and paint. That's where I don't like the 10k fee. Let's say purchase is 40k, rehab is 20k, auction fee is 4k, guru fee 15k (will make this go down) all in 79k. arv 100k. Rent will be in the 1100 range. Is there enough meat on this bone?