All Forum Posts by: Duane Kidman

I agree with @Brent Coombs, if available, this is a Flippers bread-n-butter.

@Deano Vulcano  What did you decide about the House Flipping Formula program of Justin Williams and Andy McFarland?  Or are you more advanced and considering his 7-Figure Flipping program?

Curious what you decided upon and why.

@Shanequa J. Justin does advertise his programs for a week prior to opening the doors, and uses existing members to help describe the program and value.  Once the doors are closed, his podcasts are not as you described, quite the contrary.  The majority of his podcasts are informative and provide useful tips for Flippers that want to systematize their business (Justin's niche).  You must have caught his podcast during this period.

I would challenge you to listen to more of his podcasts and reconsider your opinion.  You might even learn something ;)

Let's break this down:

1) "Homeowner bought a house with his first wife. They got divorced and she lived in the house, then passed away."

NC is an Equitable Property State.  Which means that the Ex/Deceased Wife could have had equitable interest, especially if she continued to live in the house.  If she did have an interest, did she have heirs?  Has her estate gone through probate?  I would check into this, and make sure he has full title and able to provide a General Warranty Deed.

2) He owes about $80k on the mortgage. Comps around $90k-$110k, and could rent for $900-$975 easily. He's in the process of fixing it up so it's not livable and still needs probably $10k-$15k worth of work.

What is the ARV? ARV and comps can be two different things. ARV is value of the house after renovation is complete. Comps are typically average home pricing for the area, which are normally no completely renovated. The difference can be $5-$10k different for this priced range home.

If he provides complete rehab, and you can pick-up for $90k, then you should be able to charge top rental value.  

Otherwise, if the rehab is minimal to bring up to habitable conditions, you may make an offer of $80k or sub2 or wrap.

Hi Christina,

Welcome to REI 101. And thank you for your service to our Country.

I recall a latin phrase, "Nanos gigantum humeris insidentes."  Isaac Newton put it this way, "If I have seen further, it is by standing on the shoulders of giants."  This follows along with @Scott Anders recommendation, find a good mentor.

Mentorship in this industry is usually a two-way street, you need to bring something of value to the relationship, not just your hunger and eagerness to learn.  Otherwise, unlike Scott's suggestion, you should be prepared to pay for education.  You can never go wrong with investing in yourself, but you can pay too much.

Study everything you can get your hands on, BiggerPockets is an excellent resource, and they offer video courses that walk you through basic information; I would start here.  If you do want to Wholesale (which is a great way to start) or Flip, then consider House Flipping Formula with Justin Williams and Andy McFarland.  These guys turn about 100+ homes each per year, and offer an honest training program and mentorship.  I have worked with these guys, and have complete trust and faith in them.

Books...? go to http://biggerpockets.com/books for a good list of Top Real Estate books.

Much success!

@Zac Dotson I am an attorney in the DFW area, and invest in the Fort Worth area.

I am not a tax specialist, but have helped many Residential Real Estate owners.

I can offer a referral: Richard Kilgore, 104 South Village Ctr Dr, Southlake, TX

He is very good.  Let him know I sent you.

@Brian Naumann Sounds like you did most of what you could.  

I just listened to a Podcast that talked about TurnKey Rentals, and how they staged renters that ended up disappearing on the Investor.  All he could say is he should have performed more due diligence.

This is not a loss, if you use it as a learning experience and consider what else you could have done for the next situation like this.  I hope it turns around for you.

Whenever dealing with Turn Key properties, absolute due diligence is a must: check out the company through the State, BBB, and references; background check the people you are dealing with; get copies of tenant documentation; perform your own tenant qualification; order a house inspection; get an insurance quote; review area crime reports; speak with area businesses and Chamber of Commerce; review local school district; if you can visit and drive the area, etc.  

Due diligence will save you most of the headaches you are dealing with most of the time.  In retrospect, it's time to do these things to assess where you are and what needs to minimize collateral damage.  Good luck.

Great story Nicole... take pictures, you have me curious what you are into

Try checking into some local REI (Real Estate Investing) groups and Meet-ups.

The technique I use to find buyers is to attend the tax and foreclosure auctions, watch who is buying houses, and approach them.  Get their business card, share your background, and let them know if there is anything you can do to help them - you would be interested  (the idea is to offer them some value).  

Then when you find a house, call them, share the details, and ask if they are interested in a JV and split the profit.

If you do the above, you will make contacts, get a few deals under your belt, and be well on your way.  Keep in touch.

~Duane