All Forum Posts by: Arthur Fuller II

I have not made my 1st deal yet - that being the case I have a question about the wholesaling calculator (to sell to a renting investor) and the renting calculator.

If I have never rented or flipped a rental how do I know what numbers to put into the calculator?

Cap rate?

Vacancy rate? 

repair and maintenance?

cap ex?

income increase?

expense increase?

who wants the paper work? the Auction or the hard money lender?

I have yet to apply for a hard money loan (I don't have the $$ to purchase via cash either so I will be going the hard money route) but I would assume that once the lender approves your loan you can get a POF from them.

I have a question for you, how (or why) did you apply for a loan before you have a property to flip? I have located some good pre foreclosures but have not gotten anything under contract yet so I have not applied for a hard money loan.

I'm new to this world (haven't had any deals yet). Wondering if this a viable strategy:

I'm looking at pre foreclosures with enough equity that I can offer to pay off the loan, give the owner some cash and still make a profit after rehabbing the home.

At this point I obviously don't have the cash needed to do this on my own. Is this the type of "flip" a hard money lender would be willing to fund?

an example with numbers would be:

ARV = 300k

amount owed to lender 50k

I would offer to purchase the house for 100k - 50k for the bank and 50k for the owner.

Sounds like great advice! Thank your sir and have a wonderful year!

Thank you All! Happy new year!

Im looking at a los angeles county foreclosure list and i understand if you buy at the trustee sale all loans below the foreclosed loan get whiped away but what happens to the other loans if you arrange to buy the home from the owner before the sale?

this might be to broad of a question but:

I want to get my few deals going before I spend money on scaling up my business (I need business first!!). So when starting out what would you recommend as as direct mail budget for the 1st 5-6 months?

Linval,

Thank you!! That's a lot of help!

I've heard on more than one occasion (in countless podcasts), that I need to be making several offers a week.

I'm a brand new investor and as yet have not completed my 1st deal. I have not gotten any good leads from my mail campaign (I know this takes time...) So I'm looking for deals in other places. Mostly things on the MLS over 120 days and I'm getting some stuff forwarded to my by wholesalers.

My question: I have found some houses that, if flipped the profit might be marginal. Should I make an offer or wait until I land on more of a sure thing.

I'm afraid that since I haven't flipped a house before I'm holding out for that home run deal.

Thanks for your feedback!

 my biggest obstacle is having a budget for advertising. I am working the LA market and I want to work with @JerryPuckett but I want to be able to spend about $2000 a month for about 6 months and I simply don't have it.