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David Losh
2012 Nov 30, 5:42am
We've done a few, and 15% to 20% isn't a very big margin.
The problems are numerous, such as the property sitting on the market, construction delays, or a thieving Real Estate scam coming in to vulture to project.
As an example, a straw buyer comes in right away, ties up the property, then is overly meticulous in the inspection. The deal dies, and the intended buyer steps in to save the day. Well, the inspection now needs to be disclosed, negotiations get complicated, and the property sells for less than intended.
In the flipper business it's all about the numbers. This person looking for investors may be great, but you need to look at the books.
A track record of ten years is great. You will also want to hear about the contingency plan, like if the property doesn't sell, will the flipper rent the property for say three years, and have your money tied up?
For what its worth, my wife and her co-workers know this guy personally. He used to work with them, but quit an engineering job to go do this flipping thing full time.
David Losh
2012 Nov 30, 7:20am
quit an engineering job to go do this flipping thing full time.
For what this is worth, I've done flips for forty years, and wouldn't touch one today because of all the ametuers in the business.
Some of their flips are here:
http://chrisbairdconsulting.com/properties/
David Losh
2012 Nov 30, 11:55am
Some of their flips
These aren't flips.
To flip means to buy low, and sell high.
There is no extensive remuddling. There is no $120K house selling for $500K after you have put in at least six months to a year of work at a cost in excess of $100K to $200K.
This is a portfolio speculator. This is speculation and that's why they need partners.
A hard money guy would laugh so they need to self fund.
I also like how it's Chris Baird CONSULTING. Like UBS Consulting, or KPMG CONSULTING, or Blackwater CONSULTING.
Reminds me of all the fucktards running around here in Silicon Valley calling themselves CEO.
"I'm Brad Blowjob, CEO of toilettracker. Our app lets you track where and when you take a dump so you can improve your time management."
Looking for input from those on patnet that have been involved in flipping. Acquaintance hooked us up with a guy locally who owns a company doing flips. I know the flip market isn't what it once was, but this guy seems to have an ok strategy, they are targeting very specific neighborhoods that are coveted and only touching the higher end and major teardowns stuff that keeps away the smaller players. Has about 6-8 places going at a time here in town, has his own construction company doing the work to control costs, etc. He's been in business about 10 years doing this.
Deal I presume is you invest X and once a property sells, you get some % of the profit, which they claim is running around 5%-9% at the moment. (They claim to be making about 15-20% on each deal)
Given that I think the market will seasonally decline a bit now, and flatten or pick up again a bit in the summer months. What are my risks besides the obvious market cratering or it ends up being a ponzi. Although at least with real estate, with a bit of legwork I can verify that they own the assets they claim to.
#housing