Flipping America

One of the biggest challenges facing investors who are either not Realtors or are out of their market area is active valuation. Our guest today, Mark Jackson has developed a solution for this problem. Hear about that and much more coming up.

This is the long awaited show -- your stories about Contractors and their failings. Sometimes dishonest, sometimes incompetent, always the source of -- let's say -- interesting situations with our rehabs. To be fair, there are plenty of good, honest, hard-working and competent contractors out there. They may even be in the majority, but the horror stories are prevalent. It usually takes some time, but after sufficient time has passed, these stories can be a source of entertainment. So, enjoy! ...and try not to cringe. Lessons: Clear and detailed Scope of Work Due your diligence on the contractor References The NOT References Insurances, GL, Workers Comp License Clear contract Clear payment policy, including interim lien waivers Monitor the progress Monitor the property, vary your schedule. Protect your investment Emails: Ron: Contractor was hired, asked for money to get started. Never showed up to do the first bit of work. Raymond: Contractor completed 41,000 in work and was paid. Still lacked 2000, but after two weeks, had not been back to the job site. I fired him. 2 months later he liened the property for $17,000. Ended up settling for $5,000 because that was cheaper than the legal fees to fight it. Erin: We finished up the job and everything looked great. I paid the final invoice, got my lien waiver. Two weeks later the AC wasn't working right - it was supposed to be brand new. I called the contractor. He blamed the sub, gave me that guys' number. I called him and he told me he installed exactly what the contractor told him - and he had said it was insufficient, but the GC wanted to save money. I ended up having to redo the entire system with a different AC guy. Lisa: Everything went exactly as planned. Contractor finished on time and on budget. We paid, got our lien waiver signed. All was good. Two weeks on the market and we had multiple offers. Then we discovered that one of the subs had filed a lien on the property because they had not been paid. I notified the contractor that this sub had better get paid or a shit storm was heading his way. It was resolved, but I had to find a new contractor. Franklin from Macon: The day after my job was complete I met the realtor at the house to list it. When I got there I discovered that both brand new air conditioners and all of the brand new appliances had been stolen. Guess what? Those items were not covered by insurance. So I had to fork over another $10,000 to replace them all. It turns out that one of the subs had all the stuff and by the time they caught him he had sold everything except one of the AC units. We are working through the courts on a restitution plan but it may take awhile for me to get my money.

This is the long awaited show -- your stories about Contractors and their failings. Sometimes dishonest, sometimes incompetent, always the source of -- let's say -- interesting situations with our rehabs. To be fair, there are plenty of good, honest, hard-working and competent contractors out there. They may even be in the majority, but the horror stories are prevalent. It usually takes some time, but after sufficient time has passed, these stories can be a source of entertainment. So, enjoy! ...and try not to cringe. Lessons: Clear and detailed Scope of Work Due your diligence on the contractor References The NOT References Insurances, GL, Workers Comp License Clear contract Clear payment policy, including interim lien waivers Monitor the progress Monitor the property, vary your schedule. Protect your investment Emails: Ron: Contractor was hired, asked for money to get started. Never showed up to do the first bit of work. Raymond: Contractor completed 41,000 in work and was paid. Still lacked 2000, but after two weeks, had not been back to the job site. I fired him. 2 months later he liened the property for $17,000. Ended up settling for $5,000 because that was cheaper than the legal fees to fight it. Erin: We finished up the job and everything looked great. I paid the final invoice, got my lien waiver. Two weeks later the AC wasn’t working right - it was supposed to be brand new. I called the contractor. He blamed the sub, gave me that guys’ number. I called him and he told me he installed exactly what the contractor told him - and he had said it was insufficient, but the GC wanted to save money. I ended up having to redo the entire system with a different AC guy. Lisa: Everything went exactly as planned. Contractor finished on time and on budget. We paid, got our lien waiver signed. All was good. Two weeks on the market and we had multiple offers. Then we discovered that one of the subs had filed a lien on the property because they had not been paid. I notified the contractor that this sub had better get paid or a shit storm was heading his way. It was resolved, but I had to find a new contractor. Franklin from Macon: The day after my job was complete I met the realtor at the house to list it. When I got there I discovered that both brand new air conditioners and all of the brand new appliances had been stolen. Guess what? Those items were not covered by insurance. So I had to fork over another $10,000 to replace them all. It turns out that one of the subs had all the stuff and by the time they caught him he had sold everything except one of the AC units. We are working through the courts on a restitution plan but it may take awhile for me to get my money.

FAR 030 Topics: Remote flipping Infrastructure Local Investors Realtors Closing Personnel Contractors Local private investors Wholesale - get with local investors Retail - build a strong team. Emails: Henry from Ocala FL, "I'm not a realtor so I don't have access to the MLS. How can I come up with the ARV?" Welcome our new affiliate near Ocala, 97.7. The Villages. Research… InvestorCompsOnline.com Tyler from Milwaukee. I have a great deal on a 4/2.5 in a desirable area and want to get your thoughts. The owner is asking 325,000. They want 10% down and will finance the rest to me at 6%. My payment including taxes and insurance would be just over 2000. I can rent the house out for $3200. It's in a great area with great schools. It would appraise today at about 340. Comment on owner financing. Michelle from Las Vegas. I have an opportunity to buy a house that needs serious updating. I plan to move in and make repairs as I go. Can you recommend a hard money lender out here in Vegas? The house is selling for $265,000, but it would be worth nearly $600,000 when I get all the work done. It will take about $120k to do everything I want to do, but I also plan to live here several years. I make good money and could qualify for a loan up to about 400,000, but the lender I spoke with won't loan money to make the repairs. Dodd-Frank prohibits HM lenders. Conforming lenders are limited when repairs are needed. FHA requires finished floors, for example. Go conventional, make repairs as you can with cash. OR get a HELOC and make repairs. Clay from Atlanta, I sold a business and have some cash. A local investor wants me to partner with him by putting up some cash for a downpayment on one of the properties he wants to buy. He's done a few hundred flips and I've known him awhile. I trust him but I still want to make sure I'm protected. What should I do? Interview Guests: Jason Cole, REIA of Detroit

FAR 030 Topics: Remote flipping Infrastructure Local Investors Realtors Closing Personnel Contractors Local private investors Wholesale - get with local investors Retail - build a strong team. Emails: Henry from Ocala FL, “I’m not a realtor so I don’t have access to the MLS. How can I come up with the ARV?” Welcome our new affiliate near Ocala, 97.7. The Villages. Research… InvestorCompsOnline.com Tyler from Milwaukee. I have a great deal on a 4/2.5 in a desirable area and want to get your thoughts. The owner is asking 325,000. They want 10% down and will finance the rest to me at 6%. My payment including taxes and insurance would be just over 2000. I can rent the house out for $3200. It’s in a great area with great schools. It would appraise today at about 340. Comment on owner financing. Michelle from Las Vegas. I have an opportunity to buy a house that needs serious updating. I plan to move in and make repairs as I go. Can you recommend a hard money lender out here in Vegas? The house is selling for $265,000, but it would be worth nearly $600,000 when I get all the work done. It will take about $120k to do everything I want to do, but I also plan to live here several years. I make good money and could qualify for a loan up to about 400,000, but the lender I spoke with won’t loan money to make the repairs. Dodd-Frank prohibits HM lenders. Conforming lenders are limited when repairs are needed. FHA requires finished floors, for example.   Go conventional, make repairs as you can with cash. OR get a HELOC and make repairs. Clay from Atlanta, I sold a business and have some cash. A local investor wants me to partner with him by putting up some cash for a downpayment on one of the properties he wants to buy. He’s done a few hundred flips and I’ve known him awhile. I trust him but I still want to make sure I’m protected. What should I do? Interview Guests: Jason Cole, REIA of Detroit

FAR 031 Topics: Impact of Dodd Frank Repeal on home values. Wholesale - get with local investors Retail - build a strong team. Emails: Clay from Atlanta, I sold a business and have some cash. A local investor wants me to partner with him by putting up some cash for a downpayment on one of the properties he wants to buy. He's done a few hundred flips and I've known him awhile. I trust him but I still want to make sure I'm protected. What should I do? Interview Guests: Jennifer Hammond Jennifer Hammond Show. Reality Real Estate on Sirious/XM She ties whatever she does to real estate: i.e. music Has a course on staging, to sell faster and for more money - $997. Youwillchangetheworld.com, scroll down for course. Million dollar staging secret. Non-profit groups - increasing RE values. Dr. Betty, value-based leadership. The Secrets of Top Level Performance in Life. Ben Carson on her show

FAR 031 Topics: Impact of Dodd Frank Repeal on home values.    Wholesale - get with local investors Retail - build a strong team. Emails: Clay from Atlanta, I sold a business and have some cash. A local investor wants me to partner with him by putting up some cash for a downpayment on one of the properties he wants to buy. He’s done a few hundred flips and I’ve known him awhile. I trust him but I still want to make sure I’m protected. What should I do? Interview Guests: Jennifer Hammond Jennifer Hammond Show. Reality Real Estate on Sirious/XM   She ties whatever she does to real estate: i.e. music Has a course on staging, to sell faster and for more money - $997. Youwillchangetheworld.com, scroll down for course.   Million dollar staging secret.   Non-profit groups - increasing RE values. Dr. Betty, value-based leadership. The Secrets of Top Level Performance in Life.   Ben Carson on her show

FAR 032 Topics: Emails: Andy, LaSalle Pennsylvania, "I have two great deals in front of me, but I don't have enough cash to do them both. What would you do?" Interview Guests: Maxine Frederick, Melissa Frederick, Monique Hayes BANK Code Sales Training

FAR 032 Topics: Emails: Andy, LaSalle Pennsylvania, “I have two great deals in front of me, but I don’t have enough cash to do them both. What would you do?” Interview Guests: Maxine Frederick, Melissa Frederick, Monique Hayes BANK Code Sales Training

FAR 033 News and Questions Emails: Jeremy from Indianapolis How do you get your painter to do the work for $1.25k per square foot of floor space. I've talked to 2 painters and they want $2 or $2.50 per square foot. 1400 sf house. 2 guys, 2 days. If he pays those guys $20/hour that's $320 in labor. $600 for paint. He will have about $160 in Workmans Comp. His only other costs are the wear and tear on his sprayer and other reusable items. If he assesses $100 for those items his costs total $1180. I'm paying him $1750. He's clearing around $600 and he can still do another house for me this week. He's not going to get rich from one job, but if I have 8 or 10 houses lined up for him to knock out, he's going to enjoy a steady paycheck. I pay extra for high ceilings, really rough walls, garage floors, and anything that needs an oil based primer first. So it's not strictly $1.25 per sf. Jeff, Louisville, KY I like your show and appreciate what you have to say. I want to get some training, but I'm cheap. I am finding a lot of information on the internet for free. Why should I pay for training and oh by the way, do you have an opinion about which free resources are best? Helen, Ocala, FL My husband Bob and I want to buy 3 or 4 rental houses, but we don't want to manage them. Therefore we don't care where they are really. Can you help us? Patricia, Greensboro, NC I have two rentals I want to sell. They are rented so I guess I'll need to sell them to an investor. Would an agent even list these properties? If not, how would I go about selling them? Tim, Las Vegas I think I heard you say something about using a realtor. I'm a professional investor. I can take calls and sell the property myself. Why would I want to give up 6 or 7 percent of the sales price to an order taker? Nick from Aurora, CO. How do you go about hiring a realtor in a new area? What are some of the things you look for? What do you ask them for and what do you promise them? The crooked realtor from Macon story.