I get lots of emails asking me to consolidate the results of our flipping over the past year and a half…I took a few minutes and put all this info together in one place:
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I get lots of emails asking me to consolidate the results of our flipping over the past year and a half…I took a few minutes and put all this info together in one place:
J Scott, what’s going on man… Do you only own 2 houses right now or are you just behind in posting? Or did you decide to retire?
You must be working on a big project!
Hey Steve,
With the tax credit expiring, we’ve decided to take a little break. We’re focusing on another small project that will hopefully launch in the next couple weeks, and will be back to rehabbing by the end of the month as well. In the meantime, we’re trying to catch up on the sleep we’ve lost with an 8-month-old in the house… 🙂
Hey J Scott, awesome progress! I’m actually going to be in Atlanta in early July (my whole family pretty much lives there). Would be great to meet up for lunch or coffee or something if you’re open to it and available.
Shae –
I’d love to get together! Just let me know what your schedule looks like and we’ll go from there…
Sounds great — what’s your email address? I’ll contact you directly.
Hey Shae – Just sent you an email to your hotmail account…
Hi Scott,
You have got the system down packed. Keep up the good work.
J Scott,
Thanks for answering a few of my questions in the past, so helpful. I actually have a few more for you. So are you guys going more after short sales right now instead of foreclosures? If so, Is it just because there is so much competition in the foreclosure market right now? What percentage of the list price do you find works best when offering on short sales?
Also, I am considering doing a business with an LLC in the next month or so, before we buy our first true investment flip. Is that how you usually purchase the homes?
Lastly, how do you guys figure out what personal income to take from each property? Not trying to get too personal or anything but my husband and I are trying to figure out if I should take a certain percentage away from each house flipped or a set price each time? Or just live like normal and take what is needed when it is needed. So many things to think about but this is definitely one I cant put my finger on.
Hi Blair,
We’re doing short sales for the reason you mentioned — REOs are tough to get these days! In terms of how much to offer, it has nothing to do with the list price. The bank is generally going to approve a price that is within 10% of the appraised value. If the list price is well above the appraised value, you can get deals far below list price. If the list price is below appraised value, you’ll generally need to pay above list price. The list price is just the number the agent picks in order to try to get offers.
Yes, we do all our flips out of an LLC.
As for taking money out, that’s really going to depend on your personal situation. I like to take as little out of the business as possible, so that we can grow our cash reserves and be able to buy more/bigger properties. As long as you pay your taxes, you can take out as much or as little as you want, but you’ll be taxed on all of your profits each year.