All Forum Posts by: Sean Richards

Sean Richards has started 2 posts and replied 33 times.

Appreciate the replies. IN a nutshell: I"m not one who watches HGTV and thinks "oh this is fun, I'll be rich". I've done ok in my previous business life for 20+ years, sold my company and have been retired the last few years (I'm 48 now...). Own a few townhomes - steady rent. I have a real estate relationship in Atlanta (I live in Philly - long story) and my realtor is my property manager - all is well. In 2022 we made perhaps 15 offers - got close on one - but that was it.

In a rarity for me I'm starting to get antsy. I do not have a buyer's agent here in PA. I don't have a "team" ie contractor because, well, I can't see some GC wanting to meet me for a social coffee visit when I have no project to speak of.

I'm almost to the point where - screw it, I' want to buy something - and then - well, I'll have money vested in it and it'll be time to figure out how to get it done. Yes, its rash - hence I've not done it as everything in my business past was massaged, planned out, to a fault.

On a unit like that my inexperienced self tells me that the 50-60k is right on....and I'd assume new roof, new HVAC is needed (I drove by it). So I'd say 100k in rehab. Plus - 15k in holding costs over a 6 month period. I feel the house sells for $395k so after 24k in commissions and 15k holding costs..........390k-39k = 351k. -15k profit = 336k. -100k rehab. I'd have to buy it for $236,000.

$15k profit is light. But my holding costs contains $5000 in profit because that's me, "charging myself" interest on that money being tied up so in reality I'd be making $20,000.

I'm wondering on listings like this do I just email the listing agent, say I'm an investor, and I'd offer $236k with sole contingency being foundation of house?

Starting to think I need to do this 50 times with homes of making 1 transaction.

Then if I own the house - I'd learn, maybe a bit the hard way - how to line up the right GC. But if the $100k budget is realistic - - how bad can it be.

Personally, I would shoot for a more "cosmetic" flip than a flip that requires $100k+ in renovations. Those older houses come with a lot of unexpected problems when you start opening up walls/redoing major systems. What's your market like when it comes to houses built after 1980-1990? I've found that although the margins might be smaller, the turn around is a lot quicker.

A $15k-$20k profit doesn't leave much room for error for a reno that size.

2 Votes

Philadelphia, Pennsylvania

I've been out that way once, I had a client interested in a property in Bremen (probably 15-20 min east of Tallapoosa). To my surprise, Bremen has one of the best school systems in the state. Google "Heritage Oaks Realty" and I believe they do business out that way and might be able to advise you. Depending on the acreage and location, it might not be a bad play for new construction.

Disclosure: I'm not endorsing Heritage Oaks Realty. I haven't worked personally with them, I just know the name from several listings west of Atlanta.

0 Votes

Atlanta, Georgia

Personally I think it depends on your involvement in the flip. Do you plan on project managing/picking up materials/etc or hiring a GC/PM to do it all? Design/pre-plan as much as possible. Try to figure out what materials you need and what design theme you're going for during due diligence. The steps to flipping is fairly straightforward, executing and the logistics is where a lot of people fail.

I would also look at listings that have sold fairly quickly and basically duplicate what they did. You can easily over-renovate or under-renovate. I would also consider other exits in case the house doesn't sell and run your numbers with a worst case scenario and you're holding the loan for 9-12+ months.

0 Votes

Quote from @Rich Tenor:

Currently have a Sub 2 Deal in Burford, GA 30 mins from Atlanta. Unfortunately deal does not have any equity or cash flowing.

Direct to seller.

Purchase price 325,000

PITI 2,251.00

(Monthly payment Breakdown)

Principal and interest 1717.13

Taxes 191.87

Insurance 144.17

MIP 198.48

HOA 230.00

7-10 year Balloon

Interest rate 5.99

Reinstatement amount 33,093

Is this inside the city of Buford and Buford City Schools? What year build? What's the remaining loan balance (maybe we can get the PP down). I know Buford is a desired area and it could work as a short term flip depending on the ARV and rehab needed. I'm interested.

0 Votes

@Arylle Young I looked at this one and my challenge was the lot size/parking, being ON MLK vs in the neighborhood, and the zoning district (SPI-11 SA6). I haven't done a survey but the parcel map makes it appear as though the driveway belongs to the property to the left. Were you planning on keeping it 4 1/1s or possibly adding in the future? I'm not a proficient in these special interest districts so I'm not sure how that would work.

1 Vote

Atlanta, Georgia

Quote from @Ethan Rafferty:

Wondering if anyone else had this issue. In the Atlanta/Metro Atlanta area. I'm in the market for flips, but it seems like every wholesale list/wholesaler I meet sending me deals is incredibly sketchy. The deals they present look great on the surface, but fall apart once there's any diligence done. Whether it's a super inflated ARV or way underestimating rehab costs. I'm probably on 3 or 4 lists and haven't seen one good deal. Is this the norm or is there a better place out there to find a legit wholesaler?

Where are you meeting these wholesalers? I noticed that the ones doing deals IN Atlanta attend events/meetups/REIAs and aren't really on Facebook. Once it goes to FB, there's a high probability that it isn't a deal. Also, as someone else mentioned, online "courses" and whatnot are promoting virtual wholesaling/JVing and people are locking up deals without knowing the market. I'm cool with a JV but they take it to another level lol.

On-market is not a bad opportunity as well, especially being a direct buyer.

1 Vote

Atlanta, Georgia

Quote from @Trevone Williams:

Good Afternoon,

I’m a beginner when it comes to the real estate investing world. My goal is to house hack a multi family unit in Atlanta or the surrounding area. I would like to do this to really kickstart my real estate investing journey. I have been looking on Zillow and Realtor for properties and don’t seem to be having much luck. I am looking for advice/tips on finding multi family properties and how to navigate the works of real estate investing

How were you going to finance? I know of a listed triplex in College Park.

0 Votes

Atlanta, Georgia

Quote from @Richard Loniewski:

Network! There are a lot of people out there with money and in need of deals, I did my first flip with just $2,000 of my own money, My barber of all people was interested in getting into investing and had capital, I found the deal and the rest is history. Finding great deals is the hardest part!

I second this! I started with no money and found a successful investor that was looking to build out his acquisitions company. We did quite well and now he's my private lender.

1 Vote

Atlanta, Georgia

Quote from @AJ Satcher:

Quote from @Bob S.:

Quote from @AJ Satcher:

Hello all,

I'm in the process of closing a deal, so far I've had 2 inspections.

First inspection - Necessary. Items were brought up by inspector, no questions about getting this one.

Second Inspection: To address some of the major concerns from the initial inspection. Only around half of the agreed upon items were completed.

Third Inspection????: Trying to decide if it's still worth getting this one. This would be to address the items that were not taken care of in the second inspection.

Major items include:

- Insufficient attic insulation

- Back deck work (flashing, damaged joists)

- Plumbing leaks in a bathroom

- AFCI braker switch not working

etc.

At this point they've proven to me that they are not interested in doing what's agreed upon. Do I pay for yet ANOTHER inspection to protect myself or is this a waste?

Thanks BP community!

I have never had even one in all my 500 or so deals. Just have my guys walk it. Now if you are using a loan well you do not have any other option. However, all you need is ONE, after your team walks it. If you need more, you need a better team

All the best

Hi,

I'm using FHA for a house hack. I don't have a very big team and I have one solid handyman that I'm confident with.

If I'm not mistaken, the FHA appraiser will do an "inspection" to see if the property will go FHA. If it will, then I wouldn't be too considered with the work needed and ask for $$$ off the purchase price. I'm in Atlanta and I'm open to taking a look at the property with you.

2 Votes

Atlanta, Georgia

Is this related to your previous thread about building a duplex? The value may be different depending on the structure/use type.

1 Vote

Atlanta, Georgia

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All Forum Posts by: Sean Richards

Sean Richards has started 2 posts and replied 33 times.

Post: Can you eyeball a listing and estimate costs?

Post: Inheriting out of state need help

Post: Need advice from house flippers. Steps for flipping

Post: Sub 2 Deal

Post: House Hacking a 4-Unit Rental Property in the Heart of Atlanta, GA

Post: Finding legit wholesalers

Post: House Hack small Multi Family

Post: Newbie seeking advice on investing with low capital

Post: How Many Inspections is Enough?

Post: Questions about new construction.