All Forum Posts by: Shawn Parsh

Noah,

I would call the local officials and ask them for your options. I would then make sure my offer is contingent on you getting approval for what you want to do.

Shanequa,

I'm not sure about others, but I would never give 50% of any deal to someone that brings me a deal. Of course I have no need for wholesalers. I offer a 1,000 finders fee to anyone who tells me about an unlisted property that I buy. Between that source and my own work I've never had a problem finding deals.

Glen,

I'm not aware of a way to automatically categorize items. I keep track of what I spend on materials pretty close, but I use excel.

Steven,

I agree with Bruce. I also figure my own numbers. If you are new to rehabs then getting written bids for everything you plan to hire out is a good idea. Once you do enough deals in a particular market you will likely be able to figure your costs pretty quickly. I can normally walk through a potential property and estimate the rehab cost within a few thousand. If you plan to sell after the rehab then getting an estimated after repair value from a qualified realtor would be wise. Ultimately you are responsible for your business so do your own research on everything and confirm what your being told.

Sharma,

From my perspective I prefer to run my own fix and flips. I don't have enough details to know whether it's a good move for you, but I think my numbers work out better when I'm the lead. No one will care more about your success then you.

Satish,

The price will vary greatly depending on who builds it and when it's built. I would recommend getting several actual written bids and then select the one you like the best.

Alazar,

I recommend that you tell everyone that you interact with that you are a real estate investor and tell them what kind of properties you are looking for. Everyone knows someone and you would be surprised how quickly you can start getting leads. To increase the effort others put into building my business I offer a 1,000 referral fee to anyone who tells me about an unlisted property that I buy. This has worked well for me. As suggested you can also knock on doors located next to properties that look like they meet your criteria for buying. For me I focus on distressed properties so they are pretty easy to spot. 

Whenever you buy and rehab a house make sure you talk to the neighbors and tell them that you are always looking for more properties. If they see what you do to a distressed house in their neighborhood they will be a great advocate for you going forward. I've got many deals from people that lived next to houses I have rehabbed. 

Oh, and just my two cents Never buy a property with the intent to break even, even if you are just trying to learn more about the business. You can learn the business while making money too and it is a lot more fun. You are in the real estate investment Business and as such the numbers will have to make sense for you to get involved. People will understand that. Good luck. 

Ryan,

I agree with Chris @Chris Ayars. The bottom line is how you decide to split the profit is completely up to you and this new partner. Personally I would not split this deal 50/50. You have the experience and know how to get the deal done right. Second I would not create an LLC with each of you as 50 50 partners. I would want to have the deciding vote on any issues that arise.

Having said that I would not buy any investment real-estate in my own name so I would definitely have/create an LLC for the purchase. Maybe you could come to an agreement where you split the profit 70/30 or 60/40. The profit would only be calculated after all cost to include closing cost (realtor commissions included) were deducted. You can explain to your potential new partner that he will make an extra amount on each deal through his realtor commission which will help increase his profit.

If possible make a deal that both of you are happy with because finding quality people to work with is a key to being successful long term. As you said it will free up some of your time and will help accelerate your business. Good luck.  

Ron,

I prefer to have it sprayed and rolled afterwards as well. I find that if you have to go back and touch up paint down the road it will look different if it was just sprayed originally. When I go back and touch up a spot with a brush or roller I can always see right where it was touched up unless it was also rolled the first time. 

Choose,

It's good to have a general guideline to start with, but as you gain experience in a particular market you need to adjust your numbers based on experience. However, it is never a bad idea to overestimate expenses and under estimate the final sales price.