All Forum Posts by: Spencer Cornelia

@Jeff C. he actually wants 40% of rehab budget up front.  Since it was my first deal with him and I only had $15k, I sent him what I had.

I'm not disagreeing with you as I think that advice is generally solid, but when you find A+ contractors (which he is), I'm only slowing him down by not sending him money upfront.

I'll probably send him 50% rehab budget on my next flip using him he's that good.

I'm in the process of completing my first two flips at the moment.

Contractor 1: he buys majority of small material items (I bought floors, cabinets, appliances), does the work, then I use the draw money from HML to pay him.

Contractor 2: he wants $15k upfront for labor then I cover all material costs.

I'm new to this so I operated on their terms.  With flipping, always estimate that there will be more expenses than expected.

@William B.
Option 1: you take the profit and take on your second deal.  After completing your second deal, you move on to the third.  When enough capital is in hand, you beginning taking on two rehabs at a time.

Option 2: you use this money as a down payment on a small investment property.  Maybe a $100k duplex in a second or third tier city.

Option 3: you pay for event space.  Spend $20k on marketing.  Invite everyone through social media ads.  Pitch everyone there why they should invest in you.  use the funds raised to do your second flip.

"there is a free wealth building expo"

You think this guy works for free? :)

These events are all the same.  Hype, hype, hype.  A little showmanship of how successful he/they are and how everyone can do it.  Just the entrance into his sales funnel of becoming a lending/syndicate partner.

"Given the above numbers looking to get peoples thoughts on what a good sale price is considering comp cap rates."

A duplex will be valued by comps in the area.  Cap rate may be a good way to promote the value of the property, but the appraisal will be based on what recent sales exist for duplexes.

Are there any recent sales for duplex in the area?  Or are they all single family?

@Gloria R Lowen google 'Than Merrill Real Estate course review bigger pockets' or 'Fortune Builders bigger pockets' and you'll spend more time reading forum posts than it took me to binge watch the Christopher Nolan Batman trilogy.

@Jared Palacios go to every local meetup you can get to for the next 12-16 months.  Grow your network of individuals who attend these meetups.  That's a start

I'm getting my license in the city I operate in because I want to get 3% commission on purchase and sale of houses I rehab and sell.  I personally would recommend getting your license because you won't have to rely on anyone else for running comps or putting in offers.

Lastly -- Passive real estate is an overused phrase for people who only want the benefits of real estate and not the work that goes into actually building a portfolio that produces that type of income.  

Start going to meetups and let the people in your area who are doing deals guide you.  They'll be better source of help than strangers on the internet.

@Pilar Lazzati a database full of property info for a certain county.  Google 'Your County' tax assessor and look for property search.  You can input addresses and get info for the property, such as tax info, purchase price, purchase date, owner's name and mailing address, etc.

@Casey Powers Someone privately messaged me from this thread, recommended their broker, and I'm meeting with him on Saturday.  100% commission, very fair fee per each transaction, really low monthly fee.  Sign me up!!

@Marcus Auerbach I haven't taken the test yet.  I live in Las Vegas and looking to get my license in Ohio.  I rehab houses in Ohio and would like to sell them myself.