All Forum Posts by: Shawn Torsitano

Depends on the exact nature of the loan. Some loans may provide the money before the task, with the money for the next task not being released until after the previous one is checked out.  Other loans may be the opposite, with the money being disbursed after you have completed the task that the money is earmarked for.

Many contractors would be completely fine waiting a couple days to get paid. 72 hours(48 for contractor review, 24 for funds availability) is essentially nothing in the contractor world. Just tell them upfront that prior to final payment for the task, the job will have to be reviewed, and to expect 3-5 days for final payment.

Hello everyone,

I am a newer investor in the Willamette Valley Oregon area, primarily looking at investing in Albany and the surrounding area(Salem, Eugene, Lebanon, Corvallis). I am in a great position to finally start investing, specifically in flips, and am looking for a partnership to help me get started.

I have both a real estate brokers license, and a general contractors license. I run a painting company, and have employees with backgrounds in basic demo, sheet rock, carpentry, flooring, and of course painting. Running the company is currently my only real job, which leaves me with plenty of time to put towards my first investment.

I've made relationships with some of the private lenders in the area, I have a couple mentors locally that I talk to, and what I'm looking for now is someone to partner with for the initial costs. There are three possibilities that I currently see as an option for anyone who may be interested.

1) 2nd position on the house behind the private money lenders, financing the down payments, at fair rates for the money. The private lenders around here(closer to hard money) require some initial capital for underwriting. From my conversations with them, it sounded like roughly 10-15% of the cost would have to be brought to the table. They have already said that a second position shouldn't be an issue.

2) Standard equity partnership, with the partner providing all the capital, me doing all the work, and the deal being split 50/50. This is my personal preference.

3) Equity partnership for just the money that won't be financed. Sort of between the previous two, only bringing around 15% of the cost to the table, and getting a share of the profits instead of interest on the loan.

I would really love to start putting offers in on houses, but as an agent in the area, I don't want to tie up any properties without being reasonably confident that financing will go through. Although I intend to do some of the work internally, I budget flips based on hiring out the work. I also include room for agent commissions, and the like. If anyone is interested and would like to talk further, please contact me at [email protected], or here on BP.

The duplex is the single building, with two units. That unit in particular is ~1300 sqft, like the listing says. But you are only purchasing that half of the duplex. The other side is owned by someone else, and not included in this sale. 

The cheaper one is only one side of the duplex, you wouldn't be purchasing the whole thing. Think of it like buying a condo.

@Joseph Fernandez

Yeah, it definitely could. So looking again, I'm pretty sure the cheaper one is only one side of the duplex, which is currently vacant, where as the more expensive one is the whole duplex, and is rented out completely. 

Two units doubles the revenue, and logically, could double the price. Things get a bit different once you get past 4 units though.

Correct me if I'm wrong, but looking at those numbers, the more expensive one is almost twice the size of the cheaper one.

Edit: Think I got it. Pretty sure the cheaper one is just one side of a duplex.

Not sure if you have better options, so do what you think is best.

As a side note though, that $3,600 could be eaten up incredibly quickly. 1 month vacancy and the cost of the company to place the tenants, and it's probably already almost gone, before factoring in any repair and maintenance costs.

Is painting included in the Drywall bid?

The big time agencies don't have as much of an advantage as you think. It's all about who they talked to last, and who is in their mind. One of the other agents in my office was telling me about one of her neighbors, in an area she just moved to. This particular person was friends with 4 other real estate agents, some of which lived pretty close by. They listed their house with an agent out of Salem, over an hour away, because he sent them a letter.

I think something like 80% of people only interview one agent. You just have to stay at the top of their mind. Make the cold calls, and do the other things that agents should be doing, but almost never do.

Sit down with him and "ask for his help". Get your comps, all your cost estimates, and ask him to meet with you. Tell him something like, "I'd really like to buy your property, but these are the numbers I keep coming up with. Is there something I'm missing? I want to get close to your price, but I'm not sure what is adding that value". Make it sound like you think he is right, and that there just has to be something you're missing.

Trying to get people to justify their price without being combative is a great way to make them rethink their numbers. If he sounds open to a low offer, submit it. If he is stuck at his price for whatever reason, you know not to waste any more of your time.