All Forum Posts by: Steven Goldman

Hi Will,

MY partners and I work in Upper Darby, Drexel Hill, Ridley Park, and Springfield. We BRRR, Flip, and some of us have turnkey properties. We would be glad to help you get started. We do our rehabbing. If you check out my page you will see our last project in Bywood, Upper Darby. I look forward to hearing from you.

Hi Dude, 

You can make the 15-minute drive from North Bend to Cincinnati. That should not be your problem. the idea that you are getting involved in investment real estate and do not have time to attend to your money could be a problem. Over my years in real estate, I have observed that the people who succeed are all in on real estate. 

Start, by identifying where in Cincinnati you want to purchase a property. Gather a team together,  a realtor and, a lender or, broker. That way when you find a property you are in a position to compete to get the contract.

Hi Omri: Indiana and Ohio are easier entry markets. You should determine your market and then gather your team together before you start looking at properties. Find a realtor you can work with, and familiarize yourself with the available financing before you submit a contract. Good luck.

@Fred Adadjo:

Good afternoon: I am sure you could find a prospectus that someone else produced and use it as a template for your narrative. You should focus your pitch on the questions a potential investor would have before contributing to a project.

1. Your experience with construction
2. Prior  successful flips or holds
3. Your method of determining ARV
4. The realistic return you can provide on their investment.

If your answer to the first two questions is; " I do not have any." Forget about trying to execute a rehab that will cost over 3 times the purchase price. Start with an easier and more realistic project. Otherwise good luck!

 I would be very cautious buying do-it-yourself house packages. If you have to refinance, you might find yourself without options. I would check with an appraiser and your municipal zoning officer to determine if they are acceptable.  I doubt it. 

 Hi Gregory in the many years that I have been in real estate I have never had a contractor show up on the job with 40 percent of the materials needed to complete the work. But if he did, I would pay him on the spot when they were delivered. A contractor should vet the owner to ensure he has the funds necessary to pay for the job. I appreciate good contracting but despise being delayed or ripped off by unscrupulous people. Most owners are paying interest on the funds so timing is everything. 

I only use contractors when required by the municipality I am working in. I would rather partner with an experienced builder than hire him. Nonetheless, I have had success with my contractors when I followed the simple steps outlined in my earlier comment. It avoids disputes. I use written change orders and pay everyone promptly. I advance sums to contractors who have proven through experience that they can be trusted. Even then I keep my ears to the ground because a good guy can go bad due to human problems. (Gambling, drugs, divorce and lust)

 Hi Blake, I am an experienced rehabber. I concentrate on flips. I have found locating a competent trustworthy contractor is the most difficult challenge to success in flipping properties. Most contractors are trying to maximize profits from each job. As a flipper, you are trying to control your costs to maximize your return on each deal. Your goals are in total conflict. The key is to have a detailed scope of work itemizing the materials and grade of materials to ensure that the contractor will complete the job for the original agreed amount. 

I agree with the contributors who say get more than one quote. Your quotes will not be comparable unless you have that detailed scope of work so that you know everyone is quoting the same job.

You should not advance money to the contractor unless the materials are on site and the work is being performed. The number one reason rehabs fail is the owner advances too much money to the contractor who uses the money to complete other projects or, go on vacation. 

Before paying the contractor a draw visit the property and confirm that the work is completed in a workmanlike manner. This keeps the job moving and ensures that you do not get stuck at the end with a poorly executed rehab. Good luck!

Try to obtain all of the paperwork the builder will provide you. He may be reluctant to give you the receipts as he may have been charging a markup. His bills and the proof of payment should be sufficient for most lenders. Good luck.

Where is the value in this thread?

Dude the last thing you want to do is use 100 percent of your money to BRRRR. You typically borrow up to 75-90 percent of the purchase price and 100 percent of the rehab costs. On your first deal, most rehab lenders will not lend you more money for the rehab than the purchase price. Your rates will be determined by prior experience and credit score. We wish you luck with your first rehab. Good luck.