All Forum Posts by: AJ Santiago

@Beau Boyster thanks for the tip! I'll PM can you give me more info about your insurance policy? Will def need to look into one for the course of construction. Also interested to know more about your STRs!

@Lynnette E.

Oh my. So much gold in this. I have heard of the CA fair plan wrap around insurance. I’ll look into Lloyds of London for rates and terms. I’ve also looked into the fire zones and sewer/septic tanks.

Yes my biggest concern, is getting into one of these houses and completely miss major structural fixes. I’ll do my best to to walk these properties with inspectors & my contractors. Everything you mentioned is duly noted and will take into consideration. Thank you so much! ☺️

HML was referred to us from the wholesaler! His terms were: 3 points + 15% interest, 85% or purchase price

@John Sharpe

Hey John, thank you for the insights! I have contractors that are willing to drive up there. Seems a lot of diff factors that affect any holding strategy up there so we are leaning more on the fix n flip side first, then we’ll look into STRs as we learn more about the area!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $95,000
Cash invested: $40,000
Sale price: $150,000

First ever project for me and my sister! We acquired the property through a wholesaler, rehab took 2 weeks, went fairly smoothly, hired a kick-*** contractor and a rockstar agent on our team!

What made you interested in investing in this type of deal?

As a first time rookie investor, we were eager to jump in and decided to take the leap of faith

How did you find this deal and how did you negotiate it?

Wholesaler.

How did you finance this deal?

Hard Money and cash reserves

How did you add value to the deal?

Cosmetic upgrades: flooring, interior/exterior paint, trims, moldings, quarts kitchen tops, added a new gas range & vent, added kitchen countertops and storage, light landscaping. lot size is .25 acre so we added a 6ft fence to give new homeowners privacy. converted carport into a garage w/ rollup.

What was the outcome?

Outcame was amazing! Couldn't ask for a better turnout!

Escrow closed after a month. We dove in knowing the margins were very thin, but it was such a learning experience and an eye-opener as to what and how much goes into a project.

The turnout was amazing! Had so much fun with the team. Very excited for whats to come and eager to dive into the next project!

Lessons learned? Challenges?

1. the importance of finish lists (organization, attention to detail, always specify)
2. anticipating delays (shipping, equipment rentals, etc)
3. construction schedules to keep contractor accountable!
4. cash reserves!
5. when estimating costs, pretty much times it by a conservative variance. don't be always hopeful on the best case scenario!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $95,000
Cash invested: $40,000
Sale price: $150,000

First ever project for me and my sister! We acquired the property through a wholesaler, rehab took 2 weeks, went fairly smoothly, hired a kick-*** contractor and a rockstar agent on our team! Escrow closed after a month. We dove in knowing the margins were very thin, but it was such a learning experience and an eye-opener as to what and how much goes into a project.

The turnout was amazing! Had so much fun with the team. Very excited for whats to come and eager to dive into the next project!

What made you interested in investing in this type of deal?

As a first time rookie investor, we were eager to jump in and decided to take the leap of faith

How did you find this deal and how did you negotiate it?

Wholesaler.

How did you finance this deal?

Hard Money and cash reserves

How did you add value to the deal?

Cosmetic upgrades: flooring, interior/exterior paint, trims, moldings, quarts kitchen tops, added a new gas range & vent, added kitchen countertops and storage, light landscaping. lot size is .25 acre so we added a 6ft fence to give new homeowners privacy. converted carport into a garage w/ rollup.

What was the outcome?

Outcame was amazing! Couldn't ask for a better turnout!

Lessons learned? Challenges?

1. the importance of finish lists (organization, attention to detail, always specify)
2. anticipating delays (shipping, equipment rentals, etc)
3. construction schedules to keep contractor accountable!
4. cash reserves!
5. when estimating costs, pretty much times it by a conservative variance. don't be always hopeful on the best case scenario!

Hello Everyone!

I'm an investor from Anaheim CA, but currently looking to invest in the Crestline/Big Bear area! According to the local realtors I met with, the market here is very hot with little inventory. However, after driving around for hours I think there's potential for off-market deals. From what I observed, the community is very tight & close, everyone knows eachother, and they hold lots of community events. (although due to covid this is limited).

Anyone has any experience/knowledge in investing in this area ? Houses seem to be in the 1900-1950s. With that said, what are things to look out for (weather, snow, insurance, sewer lines, etc)? Any insights on doing a fix n flip vs. STR/rental up here?

Any tips/advices/insights are greatly appreciated! 

@Kyle Keller

Which steps should I take first? Find a good deal first then present it to a hard money lender, or get prequalified with the lender first, then scout for a deal? Thank you again!

@Daeun Lee @Deangelo Pileak Sun

I’m actually dealing with this issue as well! I have downpayment ready but no income :(

I work in the cannabis industry, I’m currently working with a CPA to help me. but @Deangelo Pileak Sun, if you have any more advice/tips on this, is it possible if us three start a DM group on this BP platform?!

Hi guys! Need some advice/pointers as to how I can use HMLs to fund my first deal.

Before I reach out to hard money lenders, I was hoping to gather some info from the BP community!

1. What is the process to getting a hard money loan? Is it much like getting a conventional loan where they check FICO score, income statements, debt to income ratios, etc? Do they also do pre-qualifications?

2. What step should I take first, getting prequalified then looking for a property deal? I’ve heard instances where if you find a good deal, it’s easy to get funding. So does this mean, I can also look for a deal first before even getting prequaled by a hard money lender?

Thank you guys in advance, any comments or critics, I’m all ears!