Looking for a Partner/Mentor

[Krafty]

I had posted a question in the Hard Money Lending section about being a beginner and getting funding for an investment property with lack of experience.

I received a few replies...all suggesting that I get a partner with experience, and who can be a mentor.

Where do people find good mentors?  Here?   :D

I am located in SE FL.

[blondie777]

Me too!!!!  I will take your overflow!  Looking for someone that loves to e-mail and will answer tons of questions.

[jd77v17]

I'm a beginner and have been reading up for about a year just scared to jump I have a great private lender just need to know what property really is good and isnt. I would love a mentor. I have alot of experiance in building homes too so I can do most of the rehab work, drywall,paint,electrical,wall mounts,floors, and even cabinet and vinyl siding installs. Anyone in VA, MD, PA, or WV that would like to take on a helper to develop my knowledge of the rehab world please let me know.

Davisfamilyo5@aol.com
                 ^Thats a O not a zero

[blondie777]

I say go for it!!  I have not even finished the book.  I figure that I will learn as I go, and visit  sites like this and ask questions.  You can't make money by reading books, it takes action!!!

[jd77v17]

Hey blondie777,

  I knwo your right I should. Have you rehabbed any homes yet? If so how was it what did you buy/fix/sell for? Thats what I want to make sure I am getting right is the buy/fix/sell price. I don't know what prices I should be looking at...
buy 80k fix for 10k sell for 100k?
buy 70k fix for 15k sell for 90k?
I just don't want to get to a point of selling and find out that realtors ask for like 10% or something, I currently don't have any personal money to put into the deal so i want to make sure I will not end up owing a private lender or soemthing becuase I did my plans and %'s wrong.
Any advice?

[reoconsultants]

Find contacts!!

Here are some prices I pay for fix up!

Carpet installed     $7.00 per yard

Home Depot mis-mixed paint 10.00 per 5 gallons

Kitchen cabinets un-stained brand new $20-25 per cabinet

I just did a three bed two bath tri level 2100 sf I put in carpet, paint, bathrooms and kitchen including fridge dishwasher stove and oven plus a new roof for $12,500.00 And it looked Great That price also includes paying for all labor (because as anyone that knows me here would tell you I never do any work myself) Like jd77v17 I did repairs for a long time then one day it dawned on me that it was costing me way to much $$$.. What is more important fixing the house yourself and saving 2k in labor or finding the next deal  that will pay you 20-30-40k Want to make more $$$ be lazy want to make more be incompetent

Hope this helps!

Also keep in mind if your not loosing or breaking even with your money once in awhile on a deal you are not doing enough deals!!!

Also keep in mind I mostly buy and hold!

[blondie777]

Hey blondie777,

  I knwo your right I should. Have you rehabbed any homes yet? If so how was it what did you buy/fix/sell for? Thats what I want to make sure I am getting right is the buy/fix/sell price. I don't know what prices I should be looking at...
buy 80k fix for 10k sell for 100k?
buy 70k fix for 15k sell for 90k?
I just don't want to get to a point of selling and find out that realtors ask for like 10% or something, I currently don't have any personal money to put into the deal so i want to make sure I will not end up owing a private lender or soemthing becuase I did my plans and %'s wrong.
Any advice?

Jeez, I just wrote you this long long post and it somehow got erased.  Look at my How do I find a house? post.  I'm in the same boat you are.  The one thing that I know, is you have to know what the average rate is in the neighborhood.  I've been finding this out by calling for sale signs in the same neigborhoods, to find if they are at least $30k more then my flip.  I don't know what all of the fee's and taxes are going to be, so I figure, with $30k you can do a flip, and still profit.  

The guy above this post just made my day!!! I'm not going to do the work myself either.!!! I'm pretty sure, when you get a loan, you can ad what you need for repairs.  Although, I'm not 100% sure.  Russ Whitney says to get estimates, double them and put that in as an estimate to the lender.  We are thinking about getting a tax id, for a couple of bucks, workers comp for about $300 if they require this, and be our own contractor.  Even though you still have to pay the money back, you still have money to work with.  

I hope these guys give feedback on everything that I have been saying.

Don't forget to read my "How do I pick a House? post.  My e-mail address is trjwenzel@earthlink.net if you can't find it, e-mail me, and I will send you the link.  Please let me know when you are actually doing your first deal, and I'll let you know how I'm doing.

[blondie777]

By the way, the best way to find cheap vendors, is to call apartment communities, we all pay low dollar.    I would like to find out where the $25 cabinets are.  What color stain gets the best feedback.

[blondie777]

Find contacts!!

Here are some prices I pay for fix up!

Carpet installed     $7.00 per yard

Home Depot mis-mixed paint 10.00 per 5 gallons

Kitchen cabinets un-stained brand new $20-25 per cabinet

I just did a three bed two bath tri level 2100 sf I put in carpet, paint, bathrooms and kitchen including fridge dishwasher stove and oven plus a new roof for $12,500.00 And it looked Great That price also includes paying for all labor (because as anyone that knows me here would tell you I never do any work myself) Like jd77v17 I did repairs for a long time then one day it dawned on me that it was costing me way to much $$$.. What is more important fixing the house yourself and saving 2k in labor or finding the next deal  that will pay you 20-30-40k Want to make more $$$ be lazy want to make more be incompetent

Hope this helps!

Also keep in mind if your not loosing or breaking even with your money once in awhile on a deal you are not doing enough deals!!!

Also keep in mind I mostly buy and hold!

Could you tell me how your first deal went?   How you heard about flipping, what you did with your first profit, then the 2nd and the 3rd.  Learning from your experience would really help.  

[reoconsultants]

I really no longer fix and flip I fix and hold I have a bunch of rental units I have to hold now because I spent my profits as follows

1st house I bought a Corvette

2nd I went to Vegas,Cali, Mexico and on a Cruise

3rd house I bought a boat

4th I bought all new stuff for my house

5th I decided I had no money skills and held it!!

I live in an area that fix and flips are not the best thing to do I bought 3 houses a month personally for 3 1/2 years!
 

[blondie777]

That is so funny, sounds like my family!!  My money just goes with nothing to show for it, at least your having fun!

Are the rental properties supporting you?

[reoconsultants]

Oh yeah I really dont work anymore!

[blondie777]

Thats awesome!!! Seeing things like that really are inspiring!!!  Did you have good credit when you started this?

[reoconsultants]

Well I had A 530 mid score and twenty bucks! And a vehicle financed at 21%!

So yeah it was awsome!!! LOL

[jd77v17]

Thats incredable Reoconsultant I need your advice and guidance. Between you and Blondie I just might jump and get my first flip. I just wish someone could walk me step by step through the process so Idont get side swiped bya suprize or something , thats really what im scared of. Any quick step-by-step of the process of a flip from start to finish would really be helpful, also could really use some help on where to find the best flips (who to call) I have called some mortgage companies and realtors but havnt gotten very far. I amreally ready for some fun repairs and hard work and a corvette!!!