All Forum Posts by: Bryan H.

Getting paid to learn the business, how awesome is that?!

I dont know if this would work for you, but Ive done it in the past with my contractors/GC. After I set a budget and estimated profits, I allow the GC to do what they do, value engineer, drive down costs, get it done quickly, and then I share in that 'bonus' between my expected profits and my new profits created by the GC. I've split those 50%.

So for example, if my budget was $50k and you got it done for $45k with no loss in quality or time, you would get an extra $2500.

On the sell side, if I estimated my ARV to be $100k and was able to sell for $110k, I'd share in that 50%, you would get an extra $5k.

I do this because I am very happy with my return based on original numbers (otherwise I wouldnt do the deal) and if you can provide VALUE, I pay for that.

Honestly, start with educating yourself. It doesn't even need to take a lot of money. Read posts, blogs, books etc. Join a local REIA in your area, attend meetings, network, talk to others about what they are doing, how they got started etc. You need to study your local market and understand where profits can me made, because the same strategy may not work in the next city.

With $15k, you would need a partner or hard money lender in order to fix/flip, plus you need to find the great deal, find reliable contractors (which is the hardest part of fix/flip)

Bird-dogging or wholesaling can be done with the money you have but dont let the guru's lead you to believe it's easy and no-money needed. The wholesalers I know work hard, they talk to A LOT of people. They have a 100:1 ratio of people to possible deals. They spend money on marketing, mailings, driving all over the place.

I'm relatively new to RE investing. I took a year before I made any moves to understand it, to learn what I wanted to do. I found I needed to have the end in mind, why real estate? What can real estate do for you that other investing cant? Do you want to be active (a job)? Or truly invest (passive)?

What ever you decide to do, take your time, educate yourself, be patient. Dont rush in because you think prices are going up and you will miss out. Money can be and IS made in every market, regardless of what the news tells you.

Good luck.

Dan R. Hi Dan. I in NC and looking into investing in MHPs. I'd be real interested in hearing about the one you bought.

Where you found it
Did you get a bank loan or seller financing?
How you evaluated it as a good investment
Where its located

anything else you care to share
Thanks

Thanks for your opinion on the value of purchasing while using a Homepath Reno mortgage.

I'm still interested in the process. Nick, you seem to have experience here, would you mind sharing how it works out?

I'm purchasing out of state, so I can't do any of the work myself anyway.

Just wondering how the offer/bid process goes.

Looking at making an offer on a Homepath property. Its in rough shape and needs interior rehab. I want to get the Homepath Reno mortgage so I can roll the rehab costs into the mortgage. I plan to keep it as a long term rental property.

Do I need to get estimates before I agree on a purchase price and include those with my offer?

Or do I negotiate a purchase price, then get repair estimates? If repair costs are too much, can I back out and get EMD back?

I'd like to keep rehab below $20k on a $40k house. Its 4/2, 1100sf and should rent for $1200 if done well. With 20% down, ROI is about 38%.

Looking to hear how it goes.
Thanks

Looking at some homes and the seller is offering to sell on land contract. Something like 5 years, 7% with a balloon payment.

Do sellers expect to have the loan amortized like a bank where it's front loaded with interest & very little principle?

I recently came across this website while trying to get a ballpark figure for a repair. Has anyone heard of it? Used it?

I'm wondering how accurate it is? Can rehabbers chime in?

http://www.homewyse.com

Count me in. Thanks

I was reading a response on another topic and the comment was " that's a 42% return on investment. That's not a terrible ROI."

I thought to myself, 42% isn't terrible? I'm getting 20-25% ROI on my rentals and I thought I was doing good. I've only been at this for a year now and thought I was doing quite well.

Are you really getting returns >40% on rentals? What is your target ROI you look for when making purchases?