All Forum Posts by: Andy Cross

@Jacob Repreza

Hey Jacob! Welcome to the site! (and Happy Birthday,in 3 weeks!) There's a lot of great information here on BP. If you haven't tried it, I highly recommend you search the forums for answers to any questions you have. Believe it or not, the search engine here is amazing. 

I'm a newbie investor. I learned the hard (and expensive) way that you should recognize what you are passionate about, and figure out how you can use that passion to invest in Real Estate. For me, "execution" is a passion of mine. I'm an advertising project manager by day. But in Real Estate, I want to fix and flip houses.That is where I focus my education (podcasts, books, articles, etc). Everything else is important, but its secondary to what I'm passionate about. 

All the best! Take care!

Given the recent speech from the Fed Reserve Chair, one would argue that this could change the buying power of most first time home buyers. I would imagine if consumers are buying a 3br/2ba house for $250K, if rates go up they could potentially only afford $210K -- hypothetically speaking, of course. With that said, wouldn't that, in turn, cause your ARV to shift downward as well? And if you find yourself mid-flip, might raise concern, right?

 Awesome! And I used to live in Chicago. I still own my condo out there that I'm currently leasing (its not cash flowing...just pays the mortgage).

 Hey David, could you PM me your attorney contact in MDR? Thank you so much!

 Hey John...I remember chatting with you last year sometime about potentially getting a meetup started out there. I think they are trying to start the conversation again!

There's a good change I may have to wholesale this lead (its not a deal yet) if I get it under contract. However, my ultimate goal is to fix/flip this one. But just wanted to see what more seasoned investors thought about what I know about the property so far. 

What do you mean by "delayed purchase financing?"

 Hey Erik, you're right about the AV being a weird market. I do know it well - since I grew up there. And I spent a good portion of early last year immersing myself in the market. Tell me more about how this property "will need to be seasoned."

WOULD YOU BUY THIS DEAL?

4br/3ba SFR

1900+ sqft

Lot: 6,655 sqft

Built: 1988

Location: Palmdale, CA (Far East side, Think 50th and Ave R) - 60mi Northeast of LA

Needs $50K renovations (big ticket items - Kitchen: refinish cabinets (not replace), stone counters, tile backsplash, faucets, appliances, tile flooring, recessed lighting - Master Bath: Stone (or less expensive alternative) counters, recessed lighting, new double mirrors, double faucets, glass shower enclosure, new tub, new toilet, tile flooring, replace broken windows - Back Patio: Refresh and replace all rotted wood on patio cover; paint) -- Main level: laminate wood flooring -- Upper level: Carpet throughout) - Roof Good, Plumbing good, HW Heater may need to be replaced, HVAC will need inspection and cleaning. Most importatly, in this area, the AC works (100+ degrees in summer).

Seller owns outright - pending title search for liens and such

ARV: $250,000

Could Rent for $1800+/mo

Purchase Price Option 1: All Cash - $125,000

Purchase Price Option 2: Owner Financed - $150,000; 10% Down; Balance financed at 6%/mo for max 6 months; 6mo Balloon

Purchase Price Option 3: Owner Financed - $162,500: 0% Down; Balance financed at 6%/mo for max 6 months; 6mo Balloon

WOULD YOU BUY THIS DEAL IN ANY OF THESE SCENARIOS? If not...why?

 This is great, Jeff. Thank you. I totally get scenarios one and two. The third seems like a structure for the more savvy, seasoned investor; as the only part I understood was "Owner Financing." HAHAH (seriously)

Again, my goal is to find a way to stay in this deal after closing so that I can fix and flip this property. I don't care if I'm partnering with an investor that is coming in with the cash. As a matter of fact, I don't mind it at all. The potential partner could have a small majority stake in the deal. As long as I'm bringing a good deal that they otherwise would not have found on their own, the idea of partnering is not an issue. the real deal is, I'm a Project Manager by trade; and managing a "fix and flip"is what I want to do in the end.

Rehabbers in my market will for the most part pay $130-140K all cash, or potentially $155-$165K with about 6-mo owner carryback. To wholesale in either of these scenarios I likely won't make more than $5K. But, again, thats not what I want to do.

 Thank you!