Any DIY House Flippers Out There? - General DIY Discussions - Page 4 - DIY Chatroom Home Improvement Forum
Advertisement


Go Back   DIY Chatroom Home Improvement Forum > DIY Forum > General DIY Discussions

CLICK HERE AND JOIN OUR COMMUNITY TODAY...IT'S FREE!

Like Tree44Likes
Reply
 
Thread Tools
Display Modes
Old 12-30-2018, 11:44 PM   #46
Collector of tools
 
Join Date: Jun 2016
Location: Syracuse NY
Posts: 65
Rewards Points: 124
Default

Re: Any DIY House Flippers out there?


OP here. I have not found a house for my first flip so I cant really call myself a flipper yet. So this is all hypothetical. I would like to comment on a few things though:

1. I am living in my 5th new build home. Mostly what you would call tract homes. Maybe one was custom. In each of the last 3 I have come in on nights and weekends and "modified" things done by the pros during the week. Things like air sealing and insulation were big ones. But I have also uninstalled the 4 bathroom vent fans in my current house and rotated and remounted them so that the vent pipe would not have to make a 180 degree turn from the get go. I've put additional fasteners in railings/newel posts where I thought necessary, I have patched sheet rock holes in exterior walls that would have been hidden by appliances, etc. Been in the current house about 18 mos - removed an outlet last week and the ground immediately slipped off the ground screw. Pulled it a little further out and the hot wire pulled out of the back stab followed immediately by the neutral wire. I was left holding the outlet with all 3 wires dangling out of the box. Also in this house the bldg inspector would come through and flag things that needed to be addressed before moving on. Sometimes those things got addressed. Sometimes they didnt. As we speak there are things that I plan to address that the contractors never did. Even after the inspector flagged them. My point is that I dont necessarily accept that a contractor will take more care than a diyer.

2. When I talked to a mold guy about the one house I was looking at he told me that only 2(?) kinds of mold are technically toxic and neither are likely in our area. And other molds can be dangerous to those who are sensitive to mold. But since there are no state or federal standards for what/how much mold is a problem - it's kind of a non issue from a liability standpoint. He does mold testing but advised against wasting my money.

3. If I were to do a flip it would be under an LLC which I believe would protect my personal assets from law suits. And I would have whatever insurance is available to protect against that kind of liability.

I had other thoughts but it's getting late. Thanks for all the replies.
schreibdave is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 12-31-2018, 12:04 AM   #47
Member
 
Join Date: Nov 2015
Location: Maine
Posts: 8,317
Rewards Points: 6,754
Default

Re: Any DIY House Flippers out there?


Just to comment on number 3, protecting your personal assets behind a corporation or LLC is far more difficult that than just forming those legal entities. A simple example, every time you sign for something as part of your LLC you must identify you are signing for the LLC and not personally. In my Corp I would add president after my name. Fail once and you have breached the separation and are no longer protected.

Issues may be different now or different by location so before you assume you will be protected seek legal guidance.

Bud
__________________
I volunteer my help and opinions, but you are responsible for what YOU choose to do with that information.
Bud9051 is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 12-31-2018, 03:50 AM   #48
retired framer
 
Join Date: Jun 2017
Location: Fraser Valley BC Canada
Posts: 28,168
Rewards Points: 24,226
Default

Re: Any DIY House Flippers out there?


Many companies close down with losses on the books. A friend bought a restaurant name and books for 10k that had 200k in losses and then just changed the name of the business. All done by the accountant that was familiar with the restaurant business.
So he started his business tax free for the first 200K.
Nealtw is online now   Reply With Quote
Sponsored Links
Advertisement
 
Old 01-02-2019, 06:45 AM   #49
Member
 
Join Date: Jun 2018
Posts: 42
Rewards Points: 84
Default

Re: Any DIY House Flippers out there?


Quote:
Originally Posted by schreibdave View Post
OP here. I have not found a house for my first flip so I cant really call myself a flipper yet. So this is all hypothetical. I would like to comment on a few things though:

My point is that I dont necessarily accept that a contractor will take more care than a diyer.

If I were to do a flip it would be under an LLC which I believe would protect my personal assets from law suits. And I would have whatever insurance is available to protect against that kind of liability.
I suggest you research your local REIA group, which stands for Real Estate Investors Association - link https://nationalreia.org. The national org has local chapters in most regions. Yearly membership is $150 and attending meetings for non-members is $20. However, there are financial benefits to being a member that will make the $150 nothing. Also, you'll meet other area flippers who can provide invaluable advice on the realities of flipping and investing and provide tried and true suggestions based on years of experience.

Your notes about having to fix contractor work solidifies my opinion that just because you're a contractor doesn't mean you're doing great work. As a flipper, you will most likely than not meet your share of contractors that will make you question all of them. We do most of our current work on current flip. Only time we hire contractors is when we don't feel like doing the work or we cannot, meaning...

- gutters - too cold
- electrical - needed licensed electrician to do inspection and work to get cut-in card from town for electrical turn up since house was vacant for years, and even this licensed electrician missed stuff that the town said we needed (and it was simple, that the town required tamper resistant outlets - I mean, come on!)
- tree removal - we're not getting those down easily and the cutters took all the debris away
- installing HVAC including furnace, coil, condenser, line set, whip - we purchased the equipment to save money but need a pro to braise the lines and charge it
- new asphalt driveway - for obvious reasons

So, everything else we did or are doing because we don't trust contractors and want to save money. Even with the contractors we hired, we researched and didn't like the majority of the ones we met.

Regarding the LLC, speak with a professional about this. In my local REIA meetings, we have a real estate attorney who comes to most meetings who knows those things. Even if your local REIA meetings don't have someone like that, I'm sure there's investors there who can advise better.
mramj4 is offline   Reply With Quote
Old 01-02-2019, 06:48 AM   #50
Member
 
Join Date: Jun 2018
Posts: 42
Rewards Points: 84
Default

Re: Any DIY House Flippers out there?


Quote:
Originally Posted by schreibdave View Post
OP here. I have not found a house for my first flip
Also, the local REIA group might give you contacts for finding houses to flip. Just be careful with this, because when some members found out we were new to flipping, they tried pawning off real garbage properties on us that no one else would touch.

And regarding not finding a house, maybe it's your realtor? We went through two other realtors before we found the perfect one for us.
mramj4 is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Our buzzing house has stumped our electrician? niftyc Electrical 32 01-14-2017 10:36 AM
whole house low water pressure/flow juels98 Plumbing 16 01-03-2017 10:11 PM
Bleach Smell In House - Help! broderbund General DIY Discussions 6 08-04-2016 08:01 PM
Cape Cod Style House Attic/Crawl Space Insulation Help Danielg Insulation 24 05-21-2012 09:20 AM
Attaching wood fence to house TheCowGod Building & Construction 5 04-13-2012 04:57 PM




Top of Page | View New Posts