All Forum Posts by: Jonathan B.

In situations like these

What should be my course of action given that I still want to use his servicem and have past experience with him?

Hi Guys,

Considering hiring a handyman - which is potentially uninsured to make some cosmetic work on a flip property -

Could you provide an example of what sections and events are important to include to make it more specific and less "Broad" "Blanket" type of form?

Thanks

Hi Guys-

I have a fix/flip project ongoing and there's a friend who's looking to get involved (passively) and lend money,

I wanted to know what is the standard compensation for these cases?

i want to make it worth while for him,

I expect to have a total profit of 15K out of this flip-

He is looking to invest 50K out of an Aprox. 100K Project

I was thinking of offering him 30% of the profit which equates to around 6%-8% on his investment,

Am i over/under paying according to the common lending standards?

I realize its a matter of what is comfortable for me - Wanted to have a view of what other people's view on structuring such deals

In addition - Considering having paperwork invovled, even though its a friend and there's trust there too - still could be a good lesson for me -  any good resource as to what type of contracts should be drafted?

Thanks

@Lesley Resnick
Thank you for your comment -

I do trust my agent and we have been cooperating very well - felt more like friends to be honest

- This is something i can say i was lucky with, he has been a great service provider and patient with new investor - which is key.

With that said, money is money and business is business,  and confidence in the deal comes with as much knowledge you gain and opinions you can get from various aspects and people that know the area, just like what you provided in your post. thank you;.

 Me collecting more random and neutral opinions is relevant and may even benefit me and my agent's cooperation down the way with more deals we will make together -

Regarding the roof - The roof is new and has 5 years on it, according to its certificate, and home inspection's opinion

your right regarding the new electrical panel this was factored in the total rehab costs.

What do you think?

Thanks.

@Larry Fried
Yes.. The house is in great shape but dated as hell -
Had a walk through and had a conservative offer of 25-30K on the rehab - for what its worth

Thanks Alot Guys!

Will see how i move forward with this - There is space to add an additional Bedroom in there, havent thought of convering the 1.5 to a full bath to bump up ARV

@Larry Fried @Vivek 

@Vivek Khoche

This includes an additional bedroom that should increase the value i guess-

Yay or nay?

@Vivek Khoche
I could do that - But i would be losing the deal, as this price mark pre-rehab is being grabbed quite quick on that area
I have a quote on rehab for 25-30K 
Taking the extreme 

120K ARV - 12K Closing costs & Comissions = 108K

108K - 96K purchase & rehab = 12K Profit actually / 12.5% 

I dont know if this counts as a good ROI for flips?

@Rachel Shad

I actually had a family member drive by - His impressions of it as OK -

which street is your rental?

Thanks

Good morning @Dionne Brunson ,

Appreciate it! Thanks