All Forum Posts by: Adam Johns

@Joshua Gordon

Is a 203(k) loan an option on this property? You won't be able to do most of the work yourselves, and may be required to fix more than you'd hoped, but it still may work out to cheaper than HM.

@Ron Steckly

In addition to the responses from those above (all whom are way more sophisticated with this kind of thing than I am), I'd just add a few questions:

What are his other exit strategies if he can't sell the house in the timeframe he's thinking, and how do you get paid in each of those circumstances? As I'm sure many on this board can tell you, what starts as a flip, doesn't always end up as a flip. Especially when you underestimate things like holding costs and just need to stop the bleeding.

@Joshua Gordon

Have you tried any of the HMLs from the site's directory? http://www.biggerpockets.com/hardmoneylenders/florida

Would he agree to letting the upfront money be a sort of "insurance"? In exchange you charge 50% of the normal rent for the first year. That way you have a cushion to cover costs if he defaults and he shows you that he can come up with money on a monthly basis and pay on time. Don't know legalities on that, or if he'd agree to those terms, but it seems like a creative way to give a guy a third chance and to CYA.

I don't have any samples of their pre-built lists, but I could probably send a line or two of my custom list without violating user agreements ;) I'm on my phone now, though, it'll have to wait til I get on the computer.

Brandon Jackson there was a similar thread earlier this morning (yesterday?). Called something like, "Do Blanket Loans Still Exist?" Sorry to not link, I'm on my phone. It did have some insight you might find helpful, though.

Well, that price is for custom leads. I think that listsource also offers you those pre-made options as well for less. I only bought one small list from listsource to start looking at some properties in the neighborhood and get an idea. I'd be interested to know how the Equifax lists compare...

Joe Gore listsource is about .29 per lead with no discounts, and that depends on options, so 1,200 would be somewhere in the neighborhood of $350 for the list.

@Ryan S. Drops to stay on the hot list are good and all, but how many "drops" will it take to get it into the supported price range? If you're $15,000 above the higher end of the comps and you're dropping $100 a week, it will take you about 3 years to get into the comp range. What would it cost you to hold that house for 3 years? I'm guessing it's more than $15k.

In other words, consider your savings on holding costs as profit, and maybe be more agressive in the price drops.

@Jonathan Hagan

Welcome! I'm another active duty (Marine) newbie here.

Congratulations on your commission, and good luck with all your new ventures.