The full-gut flip is the deep end of renovation, where the investor takes a property in serious disrepair, often down to the studs, and rebuilds it: new systems, reconfigured layouts, structural work, full kitchens and baths.
Log in to followDeal I'm modeling as a career changer, so tell me where I'm wrong. Tax card says 1,450 square feet. Tape says roughly 1,900, because at some point somebody finished a rear additio…
I run framing and finish crews so the construction side isn't the confusing part for me. The investing vocabulary is. I've heard people call a job a gut when all they did was rip…
I'm being offered participation in a fund that does heavy rehab across a few markets, and I'm still figuring out how private money moves. Sponsor's pitch is that distressed invent…
Building my list and I've got the purchase side roughly understood. What I can't get a straight answer on is everything else. I see people talk about needing "reserves" and I don'…
I'm looking at building a service around gut rehabs rather than owning them, something like an owner's rep who runs the schedule and the money for investors doing two or three hea…
I've done a few lighter flips, paint and kitchens mostly, and I've been using the 70 percent rule the whole way. Max offer equals 70 percent of ARV minus repairs. Worked fine when…
Three cosmetic flips in and I'm trying to step up to a real gut. On the cosmetic jobs 10 percent contingency was plenty, I never used all of it. Put the same 10 percent on a 100k…
I've been reading loan documents for a while now because I think I want to be on the lending side eventually, and I picked up a term sheet from a hard money lender to see how a fl…
Working through the paperwork side of a heavy rehab before I ever fund one. Say 160k of rehab released over six draws, a GC with four regular subs plus a lumber and a cabinet supp…
I'm about to close on my first rental but my brother in law wants me to look at a shell his neighbor is selling, and it's a proper gut. No kitchen, no furnace, back wall opened up…
Career changer, zero deals, reading everything. Every write-up about full guts says the same thing, that you need established contractor relationships. Fine. But I don't have any,…
Running a shell in a market I've been watching for a year. ARV supported at 340k by three comps within a quarter mile, all renovated to the finish level I'd be matching. Contracto…
Spreadsheets don't scare me, but I've never managed construction and I don't know what tooling the heavy renovation people pay for. I see ads for project management platforms aime…
The advice everywhere is to underwrite a gut flip so you can pivot to a rental hold if resale softens. I tried to actually do it and it doesn't work on my deal. Numbers: purchase…