All Forum Posts by: BJ Ralphs

This is not a rant but I could use some advice....I've owned my own business' for many years and understand that all business is competitive. I'm used to scrapping it out everyday creating something from nothing. I'm looking for a way to transition out of my present business (a traditional printing company) into building a real estate business that will allow me to re-locate to the Pacific Northwest. 

I have just under a $100 grand in the bank set aside to start a new house to flip business. I'm no rich guy, but thats a decent amount of money. (I'm sure many would be in heaven if they had that cash set aside) Unfortunately, $100 grand isn't enough to finance my own deals by myself. I have experience as I've been a real estate agent since 1995, and I have bought, fixed, sold and even built from the ground up several homes, but I've also been out of the business for a long time. Offers that I make based on the 70% rule are considered low and scoffed at. Banks are sitting on tons of derelict properties (i've seen them) creating eyesores in neighborhoods but unwilling to budge on prices. I'm looking around the Vancouver WA / outer areas of Portland OR area. Hard money drives the cost of flipping a house way up, but I'm okay with paying to play, or with partnering with someone and sharing profits. I've spent weeks looking around neighborhoods, putting up bandit signs, talking to agents in the area and have made some offers but nothing has stuck yet. I'm always "temped" to pay a little too much just to get my hands on a property and get this thing rolling but I know the numbers don't lie. 

I'm asking experienced folks in the business....

What would you do if you were me? How would you kick start this thing if you wanted to have at least ONE property in production in the next 30 days? 

thanks for the reply. yes. my intention is to fix and flip the house. you've given me some food for thought. 

Hi All! 

Can someone help me with this Owner Carry scenario? How do I structure the escrow or loan. Sellers wants the down payment in their pocket right away. so do I create an escrow that also draws up separate loan docs for the balance  - I want SELLER to continue paying their small mortgage, but give me possession of the property to rehab it and pay them off everything when I finish rehabbing, sell house and escrow closes. Or do I need to pay the mortgage for them like a wrap around? 

Purchase Price $150,000

I put down 10% = $15,000  (They want immediately) - Then I pay seller 10% interest only on the balance amount $135,000 after the property is sold 

They receive $6,750 plus the $135,000 (They already have my down payment of $15,000) Seller nets $156,750 

Seller owes $70,000 with payments of $500 month - do I make this payment for them or let them continue to make it until I pay it off? 

Let me know if I left out any pertinent info. 

THANK YOU -  to any and all who have a moment to think about this. and help out! I'm grateful for the input. 

BJ

Awesome. Thank you! That was an inspiring interview!!!!

Much appreciated

BJ

I don't think we are in for a "crash" as much as a slow down. I've ready many articles the latest from BofA talking about this. The demand is slowing but the inventories are also still low. it seems like the conditions are not remotely similar to the crash of 08...but one thing similar that I see is lots of folks taking out equity to make large ticket purchases such as cars or paying off credit cards. Is the economy really that much better for the average american or is it that the housing market is better allowing for these loans. When everyone is maxed out and there are no raises, the economy will stall. 

QUESTION FOR YOU GUYS: 

has anyone experience hard money lenders changing the deal after you have a Proof of funds letter and before you actually get into escrow? - Such as jack up the points, interest or change the agreement because they know you have to perform for the seller? 

Shawn Ward Flipper from Los Angeles, CA

replied 31 minutes ago

@Mike Zaven I've used these guys and I recommend them based on their professionalism, reliability and rates:

- Capital 360

- 5 Arch

- Civic

All the best!

sjw

Sounds good. Thank you

Thank you

If you are an agent. You should have access to their data base. Then you can look up any address and it tells you who owns the property, and the person's address. but does not always have phone numbers, that requires a Little more research. 

why not just use a reputable hard money lender that understands the business and is willing to take the risk along with you rather than looking for someone who doesn't know you. I would never loan $50 k to someone with your proposal. feels risky...and I'm in the business.