All Forum Posts by: Bill J Fay

This is an important question to ask your lender. Different lenders have different policies when it comes to draws. Ask your lender what their process is. Some allow you to upload a picture of the progress without having an inspector step into your project, some require physical inspections. 

"Heavy rehab" could vary greatly. Is it a fire burnt house? Foundation issues? Old and tired with good bones? Every property is different. Ask around for contractor recommendations from qualified professionals in your area including investors, Agents, Lenders, etc. Meet with at least 3 different contractors to get a good idea of what your cost will be.

The power of choice is in your hands. Do you need the liquid $9k in your pocket now? Reach out to some DSCR lenders to get an idea of how your refinance would look so you can compare the two.

Ask other RE Investors or management companies in your area for recs. I have found many "cleaners" are not cleaning professionals. Usually, it's worth it to pay the extra amount to professionals that clean/turn other rentals.

BP has a section under "Build your Team" called Hard Money Lenders. These are vetted and recommended by BP. 

Look down your street and see if most homes have newer windows or older. If your comps have updated windows and the current ones do not function 100%, this could hurt you on the sale. Instead of installing yourself to save money, I have found buying the windows myself and paying a skilled contractor per window still saves me 50% compared to window companies in my area. 

Personally, I buy finished materials and have contractors buy construction materials. This allows me to control the end result, while keeping the project moving. When you are first getting started, you may find it easier to have contractors control all material purchase and pay the extra cost to get everything accurate and timely. 

White will look clean and fresh to most buyers. You can opt to a 2-tone color scheme with white for doors, trim, ceiling, and an off-white gray for the walls. 

As margins get tighter, the investors that aren't catching these items will start to go down. Over the past few years, you could miss big ticket items and bank on quick appreciation covering some COs.

Absolutely possible, but riskier and more difficult. There are just some things that you won't catch without physically stepping into the project. Like @Remington Lyman suggests, building out your team will be the most important step. Most lenders will want to see experience before they lend on long distance flips as well.