All Forum Posts by: Doug Watts

The rehab I'm currently doing using hard money I only came out of pocket $197.00. The house was appraised at $330K and will most likely sell for a little more than that due to recent sales in the neighborhood. I bought it for 103k and it needs approx 95k in repairs/updating. This is in Buda (aka Austin), TX though. I haven't even calculated the cash on cash return yet. Anyone want to do the math for me? Profit of 90-100k with $197 out of pocket!!! I don't think things get that good in the stock market, but feel free to try😔

Originally posted by @Steven Hamilton II:

 Thanks for your feedback Steven.  Here is a better example:

I will be partnering with some wholesalers, since I don't really have the time to dedicate to finding deals.  What do you think is fair if I would be doing the financing and the rehab?  What if we split the financing and I did the rehab?  They are bringing the deal, but basically we are partnering and teaching each other our specialties.  Mine= construction, His=marketing

Hello BPer's,

I was wondering how others are valuing your contributions in a partnership or joint venture deal.  Specifically, what percentages of a rehab deal for example, is fair regarding who does the financing, who oversees the repairs or manages the project, who finds the deal, who has the knowledge/experience...  How have you done things before or what are your thoughts?  I really appreciate any feedback.  I guess whatever you agree to with your partner/s is what the values are, but as I start getting involved in partnerships I was just wondering how some of you generally value your share of the deal.  Thanks!

Use your money for marketing and get a deal yourself at 70% of ARV. A hard money lender will finance the whole thing and you should only have to come out of pocket a couple grand to make it happen. Work a deal with your contractors to pay some of them a little late and use some of the money you get from your construction draws to make your monthly payments. This is how i did my first deal! Make it happen!😉

What is the easiest or most cost effective way to find someones phone number just by using their name and the city/state they are located in? I have never skip traced someone before, but maybe that is what im looking for. Who do yall use? Is there an easy way to just get someone's phone number or is it best to pay a little bit and just skip trace them?? I would appreciate any feedback. Thanks Is there an easy way to verify they are not on the do not call list?

My first flip is listed on the market and should be selling soon. I was just wondering if there are any strategies or things that could be helpful to me on the capital gains. Im pretty sure in texas you have to own a property for 2 years before you can do a 1031 exchange. I plan on getting a CPA soon, but since this is my first deal i dont have one yet. I may call a couple CPA's and see if they can offer any advice, but im not sure how much they can offer if i am not one of their clients yet. Anyway, any strategies or other information would be helpful from others who have been through this already. Is there anything i can do to avoid or minimize the capital gains tax? Or do i have to bite the bullet on this? Thanks.

My first flip is listed on the market and should be selling soon. I was just wondering if there are any strategies or things that could be helpful to me on the capital gains. Im pretty sure in texas you have to own a property for 2 years before you can do a 1031 exchange. I plan on getting a CPA soon, but since this is my first deal i dont have one yet. I may call a couple CPA's and see if they can offer any advice, but im not sure how much they can offer if i am not one of their clients yet. Anyway, any strategies or other information would be helpful from others who have been through this already. Is there anything i can do to avoid or minimize the capital gains tax? Or do i have to bite the bullet on this? Thanks

Call the bank, talk to more than 1 person. Call the sellers agent. Call anyone. Keep calling. Ask questions. You will find out your options.

Sheldon, There are a million ways to find properties. Research here on BP and you will find many answers. Also, for property values and recent sales AKA "comps" or comparative market analysis you will want to work or partner with a realtor. They can get the info easily and if they know youre going to give them business or you have a friend who is a realtor they should be willing to help you out. You can also get a good idea doing research yourself using redfin, craigslist, zillow, etc. You need to spend some time reading on BP and playing around with the sites i mentioned. You can find just about anything you need to know.

Used hard money on my first flip. Basically, they will give you 70% of the ARV, after repair value, if you need more than that you will have to come up with that portion yourself. Example: House is appraised for $100,000. 70% = 70,000, so the purchase price plus repair costs need to be 70,000 or less or you will have to have the money to cover the amount over 70,000. I only had to put down 1,000 for my first flip working w a hard money lender since my deal was good and i was under the 70% mark on my deal. I didnt have much in the bank, but would basically use the money i made from my draws to pay contractors and pay my mortgage payment. Not the best or smartest way to do it, but i did it, learned a lot and on to the next project!!🤑🤑. Ive worked in construction for 8 years and knew people to complete the work and hold off on being paid for weeks. I dont recommend other people to do this, but use your experience and do what works for you.