All Forum Posts by: Bill J Fay

Ceiling fans are great if you do not have AC. If you have AC, it's cheaper to install regular lighting.

Don't rush into a purchase just because you think it could be a good deal. Go walk the property with your contractors and get a breakdown that itemizes the work that they are quoting. If you can't find a GC that you feel confident in running your project, you may be a tad early in the process. I would also suggest doing your 1st flip driving distance to where you live. This way you can check on the project multiple times a week. Once you get your estimate from your contractor, then talk to your lender. There are many hard money lenders that BP recommends under "Build your team". From here, your lender will know what your budget will be and will be able to get you a loan based off of accurate information. Don't rush into a purchase without completing the necessary steps, especially for your first few. Good luck!

The property is beautiful, the structure looks... otherwise. From the photos it looks like it needs to come down. The overall construction is odd especially compared to the two other homes adjacent. I would reach out to the city's building department to get the full picture before even entertaining an offer. Do not take the seller's word. Do you have an agent in the area? They should have a better idea as well.

Just include your livable sq ft, but absolutely mention it in your listing!

Sounds like you have great experience when it comes to construction. This will be huge when it comes to your 1st flip. In regard to Hard Money Lenders, here are some advantages: 

1) Most lend to 1st time investors

2) high leverage, less downpayment

3) the ability to close quick with no appraisals 

Besides rates and term, I would ask your potential lender how their renovation draws work, which areas they do not lend in (most national lenders have some area restrictions), and how much reserves they require. 

Determining your market is a heavy rental market is amazing to know. Have you thought about using the BRRRR method instead of selling? If you are going to sell, make sure you are not going over the top on finishes. Know what the PITIA will be on your ARV is important as well. Put your feet in the buyer's shoes, does the deal pencil as a rental? If it's a heavy rental market, you'll want to target that buyer before you start your reno. Many lenders would be happy to run numbers with you to determine best exist strategy.

Negative. But hey, that means you are flipping very efficiently! 

The plan you outlined sounds solid! Best way to start with no money is using your time to find deals. Since you are an agent, set alerts on your MLS for AS IS deals. You have the means to find deals on the market and the ability to offer. Use your profession to your advantage.

Make sure you go through the avenues to do this correctly. I have experience turning an unpermitted duplex/triplex back into a SFR and as you might guess, a lot of problems popped up. If the layout works and the city approves your plans, it could be worth exploring! The city will most likely make you have separate meters for utilities and multiple egress for each unit, as well as local regulations as well. Make sure you find a licensed GC to complete this.

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