All Forum Posts by: Alan F.

ABOUT ME: I am a non resident foreign investor who just joined the real estate market possibly in the worst time :) I am interested in Cleveland,OH. I have been monitoring the market in and around Cleveland for 2 months. I have enough cash in my bank account (I have a reference letter) and I have a full time well paid job. I am not residing in U.S. and I don't have U.S. bank account other than Wise which is not considered as bank. I am already working with a realtor who has never worked with an investor before. I am working with her because we can speak the same language :) People use a lot abbreviations and jargon which I don't understand and gives me headache. I will learn but it will take some time to understand all of them.

STRATEGY: I made 2 offers up to now and waiting for the results. My strategy is to buy properties even with a small amount of cash or even none as long as it's not negative and hold for long time, rent them out for future passive income and build equity. Rates are too high now but it's ok. I don't need cash flow right now as long as I have a job. These rates will come down in a few years. I will refinance when the time comes, then my passive income will start to flow. I will invest in areas C+ and above.

LENDER: I have already contacted a few lenders and I've got pre approvals for long term DSCR loan. Unfortunately, I am living out of U.S. and the time difference is 12 hours which makes communaication difficult. Most of the lenders wants to make a phone call which most of the time I can not. I have a full time job. I can not answer phone calls when I work and my schedule is not 8am-5pm. So in the beginning I am more comfortable with emailing or even preferably whatsapp texting. If you work with non resident foreigners who doesn't have U.S. bank account and if you are willing to answer tons of questions in the beginning until I understand the process please don't hesitate to contact me. As I mentioned earlier I have reference letter from my bank to prove my liquidity. I can also provide my yearly salary from my company (they don't provide payslips). Please contact me if you can offer a minimum loan amount as $75K. I already have a few lenders with a minimum loan for $100K.

That's all for now. If you have any insights or experience to share please let me know. Happy buying and selling to everyone

I'm not trying to be negative here but....your buying for appreciation, with little to no cash flow in C+ Cleveland? Something doesn't make sense to me.

0 Votes

Cleveland, Ohio

Quote from @Shravan Gali:

Hi Folks, Can someone please help me with my dilemma here?

The floors in our property (which is going through rehab) are not level. We have an option to add a transition material(cheaper option) or we need to level the flooring for whole house - My GC says it would increase the budget by $3500 and my realtor said that this is a big deal when it comes to getting full ARV when we sell.

Is this a big deal? Appreciate any help I can get here to make the decision. Thank you!

You want that transition to not be a trip hazard or ugly. If that's underlayment on top of the subflooring, get rid of it. Its always better to have one even floor. I don't know the whole picture though...is it a retail flip? Flip for rent? Neighborhood class? Comps? Tile/wood/LVP?

BTW level is different from even ;)

Old trick when I walk a house, I set a metal ball on floor, if it rolls away, the floor isnt "level"

1 Vote

Quote from @Sam Hudacek:

Hey all,

I've got a tenant threatening to sue in small claims court over partial security deposit return due to damages.

The property is in my name which is also my primary residence. I feel like i have a great case regarding evidence, my question is, what is the worst case scenario regarding small claims court?

If its a win or a loss, does it affect credit score? My business down the line? Mortgage lending? Employment? Etc.

Thanks all!

Legal advice is best obtained from a lawyer, that being said people "threaten" to sue in alot of business environments. Always document everything you do, make sure tennants communicate in writing :)

0 Votes

Sioux Falls, South Dakota

Quote from @Lilly Fang:

I just gave an offer for a 4 bedroom/2.5 bath 2050 s.f SFH house, 450k, 8000 s.f lot, built in 1973. This house needs new paint, floor, popcorn ceiling removal, and a new kitchen and bathroom if a flip. questions:

1. how much is it to replace windows? is it necessary to replace windows? The windows are original, single pane windows, 7 big windows, 3 small bathroom windows, 1 slide door.

2. A house nearby was sold for 420k earlier this year and flipped (3 bedroom, 1600 s.f. 10000 s.f. lot, currently on the market for 649k. I don't think it will sell at that price. I would price this house for 599k for a quick sale. The problem of this area is that this is an older. established area of this town. 4 miles away is a huge new development area with lots of new houses selling for 650k for a 4 bedroom house, 4000 s.f. lot. Will an older, newly flipped house have a market? The new house does have 5k mello roos/year.

3. should I just hold it as a rental? leave the kitchen and bathroom as is, and rent it out. Probably rent is to be $2800/month. Hold it until the market is more clear and then do the flip.

Hi Lily, congrats on the offer. If I may suggest reading as much as possible about flipping. J Scott's book is great ( I think you can find it on BP) There is alot information & I would also suggest finding other books. Knowledge is power.

1. Any pricing on windows we give won't be as accurate as estimates by contractors who walk the property. Brand, product line, nature of house framing/siding etc will all play a part in the pricing

Get a minimum of 3 estimates, 5 even better. Pick their brains, you'll learn alot, retain the information. This will also help you define your criteria (SOP) to run your flipping company.

Go to cslb website & there's a license check function plus the business & professions codes are outlined really well. It outlines California residential home improvement guidelines/requirements including down payments etc. This is really important & the cslb is under state consumer affairs. The objective being to protect the customer (you) www.cslb.gov

2. I usually only flip, but holding as a LTR is one of the best exit strategies should the house not sell quickly, sometimes STR/MTR is another good exit strategy. The more the better to lower your risk.

3. See number 2

Sometimes defining your objectives will help you answer your own questions.

I look ar it as define your goals and make a plan to execute them, those may change over time & that's good because you're evolving ad a business owner.

Dont forget your holding costs, taxes, builders risk insurance, utilities, security etc.

Remember to manage everyone & be on site as much as possible. Hands on IMO is best in the beginning & as you build report you'll be able to be a bit more hands off.

Theres more I'm forgetting hence the book & SOP suggestions.

Flipping is challenging but can be very rewarding, plus the learning is priceless for othe REI endeavors.

I wish you the very best!

0 Votes

Sacramento, California

Quote from @Christopher Penaflor:

I know you most likely weren't influenced by your teachers at school, so what compelled you to become an investor?

Was is a book? Family member? Friend? Social Media Influencer?

I'd love to hear your story

Grew up in the trades, before "flipping" was a thing, deferred maintenance is pure gold. Fixing things up and selling is second nature.

1 Vote

Quote from @Arin Adella:

Hi all!

My name is Arin and I am excited to getting into Fixing & Flipping here in Charlotte! I am super interested in connecting with other investors in the area during this booming time in Charlotte.

Hi Arin, as well as BP connections, REI meetups are great. Meetup.com and social media are 1 way. Best of luck!

0 Votes

Charlotte, North Carolina

Quote from @V.G Jason:

Quote from @Ryan Randall:

Quote from @V.G Jason:

Quote from @Alan F.:

Just spitballing here, but in terms of the U.S. macroeconomic picture...has anyone considered that we're in a stagflation-like situation? Is it possible that % waffle yet trend (overall) upward? Could it be a long slow slog? IDK

Few of us have been saying that for quite sometime here. We are in stagflation.

What is your definition of stagflation? Typically there is high unemployment, high inflation, no?

We will see unemployment pick up. I know labor market shows strong, but trucking & tech got wrecked. That to me is worse than unemployment rising. Trucking logistics is fundamental to a spending economy and investments in tech growth is pivotal for the fastest way to get ahead. There is nothing like innovation(with proper regulation). Granted, lots of tech was fat trimming it's also prohibitive to (some) degree for growth. This is inherently regressive to the general economy(and world).

Unemployment is strong at local milkshake bar lacking employees pay to provide $7 milkshake to dumb spender like me. So they must pay higher per employee, but scale elsewhere as in hire less employees and then create higher turnover. So now they pass $8.50 cost for milkshake to me. I continue to buy it.

This Q4 '23, top of Q1 '24 will truly test consumer discretionary. Black Friday & holidays is pivotal for consumer discretionary and retail shopping. All companies, like look at Walmart are bracing for a poor outcome. If it's poorer than expected, this is the first time in 3-4 years where retail employment will get halted(frozen) but I doubt trimmed. Meaning they won't replace someone who quits, but not actively fire.

It's going to be high rates, high(specific) unemployment, limited growth and a relatively flat outlook. I do not believe we'll see a major dip for sideline players.

Thanks! I ment to mention above that yes... I see lots of discrentry spending still. So I guess the safest way to approach the future boils down to liquidity? Cash is king. To me the economy is tied to any and all investing. But that's just me.

0 Votes

Quote from @Ryan Randall:

Quote from @V.G Jason:

Quote from @Alan F.:

Few of us have been saying that for quite sometime here. We are in stagflation.

What is your definition of stagflation? Typically there is high unemployment, high inflation, no?

That's why I wrote stagflation "like" lol, I figured this would come up. So I think inflation is a given currently. From my perspective im seeing Big inflation with costs like home/business/vehicle insurance. Some materials are still going quickly. Jan 1st utilities up another 22%, and labor is still inflating on My end. My brokers, vendors, suppliers etc. are telling me to expect more.

As far as unemployment, it seems people just pay attention to the U3 rate & not U6. I'm not even convinced that either are truly representative of unemployment, but still lots of labor shortage. I'm seeing quite a few businesses close, move or change templates. So it seems very stagflationesque (see what I did there)

I spend alot of time mingling with the masses in my day job. But my knowledge is still basically anecdotal.

I remember the 70/80's, it is burned into my memory. As I mentioned I was was looking to learn more, funny I'm answering a question because I really don't know.

Please share your thoughts.

0 Votes

Quote from @V.G Jason:

Quote from @Alan F.:

Few of us have been saying that for quite sometime here. We are in stagflation.

I value your opinions/posts, could you elaborate on possible outcomes/strategies a little more? I do understand your standpoint on quality locations.

I know no one has a crystal ball but I learn a lot from all you guys posts. In fact I learn more here than from "experts"

Hoping Jay, James, Steve, Carlos etc opine too.

thanks everyone, from 1 of the quiet kids sitting in the back of the room ;)

1 Vote

0 Votes

All Forum Posts by: Alan F.

Alan F. has started 14 posts and replied 943 times.

Post: Looking for teammates lender, contractor, realtor, property manager

Post: Are level floors a big deal for ARV?

Post: Tenant threatening to sue in small claims court over security deposit

Post: Flip or hold as a rental?

Post: What inspired you to become an investor?

Post: Connecting with other investors

Post: Will low interest rates cause the market to crash upwards?

Post: Will low interest rates cause the market to crash upwards?

Post: Will low interest rates cause the market to crash upwards?

Post: Will low interest rates cause the market to crash upwards?