All Forum Posts by: Valerie Hiscoe

Embarrassing for them to 'see' that I meant.

An appraiser generally works only from comps - which can be tricky in a rising market because even if the house three doors down sold for $1m two months ago, yours may now be worth $1.2 on the open market - but with no comps to justify it, the appraiser can't say that. And when you buy it, you can only base your ARV on the comps. That's what the buyer's bank will base the mortgage on - not $1.2. Which doesn't necessarily mean you don't list it for $1.2 but you need to be able to make money on the ARV of $1m. (even the lowest priced houses here are more than $1m)

And I think it might be a conflict of interest or something for an appraiser to work with an investor. I'm not sure about that but it sounds a little nefarious.

The thing is, a good agent, but more importantly, a good investor must absolutely be able to calculate their own ARV or you will be ripped off. Simple as that.

But not that simple.

But luckily I can suggest a few things - some of which I learned from J. Scott and D. Manolo above, two of some of the most well-respected contributors on this website (but I didn't put the @ because it would be a bit embarrassing for them to say that). Anyways, 1. buy the books 'The book on flipping houses' and 'The book on estimating costs..' both actually written by J. Scott and available for purchase on this website. 2. then watch the webinairs or read what's written by Brandon Turner - he'll explain how you absolutely need to know the ARV, the rehab estimate, and the minimum amount of profit that you want to make on a rehab - before you even consider making an offer - because THAT is the only way you can arrive at the offer price.

And you need to hit the streets (the open houses would probably be OK too. Lol) and start determining the level of improvement in neighborhoods. If you under or over improve for the neighborhood, you will always lose money - which is probably what the flipper in your example did.

Best of luck!

I'm concerned that you might not fully understand the BRRRR method when you ask about the time line between purchasing and closing. BRRRR stands for Buy (and close), Renovate, Rent, Refinance, Repeat. You need to know the cost of the renovation and the price you'll be able to rent and refinance the property for though before you even make the offer. You definitely don't want to do any of the R's before closing.

I probably misunderstood your question, but just in case.....

I can't comment on the partnership angle from experience but I have heard of partnerships built on one person contributing the money and the other the work. If for example, you asked the question the other way around - "I have a good reputation as a flipper - should I allow people to invest money with me in a partnership where I do all the work but put in no capital?" - you'll probably find lots of businesses that build on that concept. That being said, I think it's a whole lot easier to pay your lead carpenter to do the GCing (and if he can't do that, why would you even consider him for more?), and for a realtor to have a reliable buyer seems reward enough.  As for the realtor scheduling, etc, in exchange for partnership status, forget it. For one, he's not qualified - I'm sure you've learned it's not as easy as it sounds, and two, thats for either a GC or a project manager to do when you are too busy, but remember NOBODY will care about your money as much as you do. 

A real project manager would be able to oversee multiple rehabs simultaneously and do what many GCs can't and might be a good 'next step' to start considering if multiple rehabs is your goal (and which seems to be the growth you're headed for whether they're for flip or hold).

My real answer right now though would be to look at investing in a good property manager so you can focus on being your own project manager. It seems you need more time and less stress and it's (often but not always) easier to keep on top of one property manager than multiple tenants. That would free you up somewhat to look after your high stakes activities.

Yes, sorry, I was talking about my phone

Technology isn't my strong point and my brother usually handles it but what we use is (really, it's called this) House Flipping Spreadsheet. I would phone them, not just read the ad because it offers WAY more than it sounds like. It might have what you need.

In my texting dropdown menu I have a thing where I can add more numbers (which my brother showed me) and send the same text to multiple people. As long as it's exactly the same text. I've just got an old Samsung so it's probably available on other phones. I'm using it now which is why my @Brent Causey won't work, sorry. Hope you get this.

I recently suggested to my niece that she read 'Atlas Shrugged'. Although it's not specifically related, it's a great demonstration of how no matter how many billions of dollars of aid pour into the affected area, without capitalism that money will produce and accomplish nothing. Capitalism is the only thing that CAN rebuild these areas.

If I didn't know when or where my next dollar was coming from, I'd keep the money I have in hand to feed my kids.  No question. Sometimes one must choose between priorities and guaranteeing food for as long as possible would take precedence.

As for the business side of this, I don't think you have a hope in hell of getting any kind of timely eviction and you will end up having a sworn enemy as a tenant. Others have said that emergency money is available - I'd save your legal fees and look into actually getting paid. 

I had heard that everything presently in escrow was delayed pending re-evaluation of property value.  I guess I misunderstood.

Anyway, if there is ceiling damage to two suites and they say "any assessment at this point couldn't be final", AND that the building already had empty suites that they are now going to fill with "deserving tenants" (what??), I think you may need to go through your due diligence again. They're doing short term repairs on an asset they're selling - but you're most likely buying for longer term.

It's definitely a legal issue and I'd ask your condo company for a referral. They may or may not want you represented by the same legal counsel but their lawyer might be able to provide you with a referral if he/she felt there could be a potental conflict of interest. 

I'm so sorry to hear of your situation. You might not get a lot of replies here because anyone who's flipped a house (or had renovations done) has probably experiencedo this in one form or another and seriously does not want to relive it.  I am in a spiraling beehive, air conditioner, roof, drywall, electrical saga right now and I have to keep reminding myself that 'this isn't stress, it's my job'. If you're thinking of investing, that's how you need to look at it.

Best of luck to you.