All Forum Posts by: Sean Cole

How are the leads sent to us?  I already monitor a few of the sites it appears you get leads from, so I'm curious where (what sites) you see most of the incoming leads from.

Hard Money Loans are designed to fix exactly the situation you find yourself in. While seemingly expensive at 10-15%, they are almost always less expensive than 50-70% of the profit on a deal, especially if you get in and out quickly. Of course, for you, the attraction of giving up profit is not having to make the monthly payment, but HML like the added time pressure created by the rehabber having to feed the interest monster.

I've met a few people here locally that have broached partnering with me, where they'd provide all of the capital, but I have always wound up doing some work myself on projects to save $, but it's a different equation when saving $2,000 on demo is really only putting $1000 in my pocket.

This probably isn't newer construction (post 1995), so my experience leads me to believe that a $15k rehab is probably not realistic OR that more work is required than proposed in order to get the $120k ARV.

If it's the Castleton house, I think you've left off money for updating the landscaping, updating light fixtures, redoing the basement, kitchen appliances, etc.  Based on pictures alone, I'd guess you're closer to $25k-$30k on a rehab.  I do think Castleton is worth more than $120k, though.  Given my estimate of rehab expenses (again, based solely on photos), ARV and associated costs, I'd pay no more than $70k retail for the deal (so not including a wholesale margin)

Depending on your deal with your broker, you can most likely do better than the 6% resale commissions, right?  You'd also pick up the front-side commission of course.

One of the things we talk about at our company is that our customers seem to value deals they find at a higher level than ones we find.  For example, they'll agree with our financial analysis of a deal but say it's too skinny when it yields 30% to them.  Then we'll talk a week later, and based on their own numbers, they bought a house with 10% return.

Don't rush into a deal just to do a deal.

This probably isn't newer construction (post 1995), so my experience leads me to believe that a $15k rehab is probably not realistic OR that more work is required than proposed in order to get the $120k ARV.

If it's the Castleton house, I think you've left off money for updating the landscaping, updating light fixtures, redoing the basement, kitchen appliances, etc.  Based on pictures alone, I'd guess you're closer to $25k-$30k on a rehab.  I do think Castleton is worth more than $120k, though.  Given my estimate of rehab expenses (again, based solely on photos), ARV and associated costs, I'd pay no more than $70k retail for the deal (so not including a wholesale margin)

Depending on your deal with your broker, you can most likely do better than the 6% resale commissions, right?  You'd also pick up the front-side commission of course.

One of the things we talk about at our company is that our customers seem to value deals they find at a higher level than ones we find.  For example, they'll agree with our financial analysis of a deal but say it's too skinny when it yields 30% to them.  Then we'll talk a week later, and based on their own numbers, they bought a house with 10% return.

Don't rush into a deal just to do a deal.

 That's right.  It's the same with claiming childcare tax credits.  If you make a good faith effort to get the information and they refuse, still submit the 1099.

The Watch Hill subdivision in Anderson Twp., OH is very desirable with large lots and some winter river views available. The subject property needs $100k in updating, though it's all cosmetic. Solid comps available to justify the $700,000 ARV.

We used an IKEA kitchen in one of our flips and I'll never do it again!  The price for just the cabinets was "ok" but their pricing on granite was too high...  We got quotes to have the cabinets assembled and it would've blown the budget so we did it ourselves.  Of course, we had some missing parts/pieces to boot.

Not that plywood cabs would have done much better, but shortly after finishing the house, a water line blew out (lazy plumber didn't solder an elbow) and ruined most of the cabinets.  We went to a stock HD cabinet the 2nd time around.

Having been around a while, I can say with certainty that most 1 truck contractors aren't expecting to get a 1099 for their work for you.  Right or wrong; legal or illegal, it's the truth.

As we all learned after leaving school, there's a difference between the way things happen in the real world and the way we think things are supposed to happen in the real world.  In the real world, you'll pay more if you tell your contractor that you're going to 1099 him/her.  It's your choice whether you do or not.

I can tell you that I've heard more than 1 accountant say that auditors are looking for a pattern of issuing 1099s, so you don't have to be at 100%, but you better not be at 0%, either!

Madisonville is a nice little spot for investors, but it is absolutely a street by street basis.  Madison Place is great, too.  These 2 'hoods are one of the few in the area where 2 bed houses are selling, and they're going to young professionals who demand granite, etc. in their $120k houses.  Fortunately, the kitchens are so small that you can buy remnants!

People are flipping houses all over Cincinnati - Roselawn, Bond Hill, Price Hill, too.  It's all personal preference and looking at the numbers.  End of the day, money is all green and spends the same, so I'll go where I can get better returns because other folks are scared to go there.

Julia, is the house in Trenton (where you profile says you are) or Cincinnati?  I know the Cincinnati market very well!

If you'd like to privately share the details of the project, I'd be happy to see if there's something that I can do to help you.