All Forum Posts by: Benjamin Barredo

Hello everyone,

Just wondering. When calculating your cash on cash return, is this return just for the first year? I'm guessing it is but what do I know? I'm a newbie that is trying to suck in too much information at once.

@Patrice Boenzi That's great advice. What does a standard contract cover? Does it cover "creative" approaches to gaining deals? For example a wholesale deal of a "subject to" or something like that?

Hey everyone. #askbp

Another newbie question for you all.

I don't know when the best time to approach an attorney is.

I would guess that it would be safest to get legal advice early on, even before trying to tackle a deal so that I don't end up in trouble doing something stupid.

Then again, I have no money to pay a lawyer let alone finance a deal, but I don't want to wait until after I have a deal because it could be too late and my contract is all messed up.

Is this where I get a realtor to do these things?

What's your approach, especially when starting out? When you are new and not sure but have a deal, what team member is most important to have early on? A Broker, a Realtor, an Attorney, or even an Accountant?

@Peter Crabtree So while looking for financing you happened to come across the deals because the banker happened to give you the information? That's awesome. Just goes to show that things happen when you decide to act.

You should come check out the weekly Meet-Up in Knoxville. Next week we're walking through a rehab in the works. We'll be able to ask about, well, anything we can think of. The coordinator of the meet-up is also coming up with a way we can crowdfund deals, especially since the group is full of newbies sprinkled with seasoned investors. It's going to be a way for us to learn by doing and make some money at the same time that can be invested in our own ventures.

Here's the link

https://www.meetup.com/Knoxville-Real-Estate-Investors-Club/

Nice to meet ya.

@Peter Crabtree

I'm sure you've posted your story but could you tell me how you got your first foreclosure? How'd you finance it? Where'd you find it?

I'm from Knoxville and would love to get my hands on some foreclosures but right now I'm just scowling Zillow and Redfin while driving for dollars and trying to put together a potential seller list. I'm ready to make my first deal happen.

Thanks a lot. I need more "rule of thumbs" for analyzing. I live in Knoxville and I don't yet have experience or even professionals to ask for various expenses when punching numbers. Thanks.

Congrats @Devan Mcclish 

I love the details. A lot to take in for a newbie.

Can you help me

out and explain the numbers for the first deal? Exactly how you came about your MAO? I have an equation that goes like this:

MAO = ARV - Rehabber's Profit - Repair Costs - Fixed Costs - Wholesale Fee (Wholesaling Equation, obviously).

I get the 187 is the ARV, right? What's the .7? Did you do some weird math genius thing where you multiplied by a number that would give you the same answer by subtracting the Rehabber's Profit?

Again, thanks. I bit overwhelming for a newbie like me but definitely underlines a lot of points I've come across on BP.

Hello.

So, I'm ready to make my move. I'm analyzing deals as best I can (I don't have enough knowledge to really know the rehab and fixed costs - where's a good place to learn that for my area?) and I'm finding potential deals all over town.

But before I begin chasing partners and investors, I want to write out my business plan as the #BPUBGTREI suggests. (I bet hashtags don't work on here...)

I am at my criteria and the books says to define my loan to value. I know that LTV refers to what the bank will loan me. So does that mean I need to have a minimum and maximum LTV that I'll accept? Or do I only look for deals that will allow me to get an LTV that still keeps it as a good deal?

Thanks.

how does one find out which homes in my area are flips? 

I've seen a lot of videos about creative investing that encourages getting the property under contract and then working on the analysis and exit strategy. 

So why is it wrong to do that for a lot of you guys? Why is it lying? As long as the seller knows what the investor is doing, is it lying?