All Forum Posts by: Blake Stevens

O'Loughlin, go Ridgeview.

Refi's can get done pretty fast, especially if you start the paperwork and review and things before the closing.

I would think maybe a half a month or a full month after your exchange closes.
Here are mortgage brokers that I have used personally and would use again.

Broker Mtg Sheryl Laskie Guild Mortgage
Broker Mtg Billy Campbell Security First Financial
Broker Mtg Patrick Boehler Guaranteed Rate Mortgage

I can't send contact info, contact me, my info is in my profile and I can send you the contact info, or I'm sure they aren't hard to find with a a search.  Patrick may just be the office manager now, not sure if he is doing loans direct still.  Congrats on the exchanges.  

Here are two upcoming meetups.  The other one in the area was done by James Orr, he stopped and not sure he will start up again.  He has most of the meetings up as a podcast search Nomad and Jame Orr  super high level detailed real world real estate investing education.  

ICOR Thursday meeting this week, I plan to go, it's about managing fix and flip which is useful for me.  

https://www.meetup.com/icorock...

This is the monthly local bigger pockets related meetup.  

https://www.meetup.com/BadAssR...

James Orr Meeting if he starts back up again

https://www.meetup.com/Norther...

I think it helps an appraiser to see a nice clean place.  Everything is perception.  It also helps if you have a list of things you upgraded.  They are worried about covering themselves in case you default on the loan and something comes back on them saying why did you appraise this fourplex so high when the actual value ended up lower.  

Appraisers just run off of comps and in my experience don't adjust enough for property condition.  For the work you did the appraisal probably won't increase more than the money you put in to it.  Because the place was clean nice, livable and functional before.  It's exactly the same now for function and just has updated colors and styles.  It should attract better renters though.  Which will make landlording easier and give you a better long term result.  

For the appraisal to get that as high as possible, dig in to all the comps and go out a couple of miles in Loveland to find the top 4 plex, Tri-plex and duplex comps.  Then print those out and email as well to the appraiser.  You could even go so far to higher a friendly appraiser, get them to run an appraisal as high as they can push, then say you got this appraisal for your purchase or some other excuse and give that to them.  Appraisers and just trying to do their job so if you give them something to cheat off of, from another full appraiser a lot of times they'll hit the easy button and use the stuff you gave them.  It's a fine line though as some are really sensitive to being pushed or influenced to try and get a higher value, so if you push too much it can back fire and they can bring it in real low.  

Looks real nice, good job.  I would probably put in a microwave over the stove.  They have thin ones for $450 so you don't have to change the old larger cabinet size.  But most tenants probably aren't going to mind a counter top microwave either and may provide themselves.  

That's cool way to go.  Great plan mixing a career in property management with investing and managing for yourself.  I'll message you with my info, we wholesale periodically, probably not this year, too hard to buy and we would just wholetail.  We are cash buyers (my sister and I) and manage our properties ourselves.  Always good to network locally for referrals and shared resources and get surrounded by like minded people.  

Jacob,

Owner occupant loans have many options, in Colorado you can do 1% down with a CHAFA loan, you have to make less than $55,000 or some pretty high amount but still lower income, lots of PMI and higher payment since you have so little down, I don't think they like people moving and making it a rental unless you pay off the 2nd loan for 2.5% that CHAFA makes.

FHA loans 3.5% down, most entry level buyers use this because FHA will take a lower credit score, you have PMI and higher payment.

3% down conventional, if you have good credit I think you can get 3% down conventional loan rates are higher with lower down payment, PMI for any loans over 80% LTV.

5%+ down payment conventional loan, probably best loan for Nomad, moving in living and house hacking then keeping as a rental and moving on.  

If you do a BRRRR deal many more steps, get great deal, fund deal, manage / perform construction, refi. Refi's up to 80% pricing is much better at 75% plan on that. Usually you still have to come up with 5% or 10% of the property value unless you bought really low or really improved the property with construction. I choose to do this because I don't want to move house to house but I started Real Estate after my 2nd kid and about age 34. If you're young the Nomad model is so much easier and so much more attainable and most young people move every year anyway.

Of course you could BRRRR Multi family student housing.  But that is a way bigger step up the ladder to develop and build or buy and reposition multi family.  Lookup or follow FR Development guys in Fort Collins, I think 3 late 20's CSU grads that have done several big developments and construction projects at a young age.  Definitely possible but gotta build a lotta skills and work that much harder.  

Sounds like you're a good saver.  Go meet with a mortgage broker, find out what you need to do to qualify for an owner occupant loan and an investor landlord loan.  Do those steps, build income or credit or savings or whatever's needed.  Learn more about real estate, market for a property with sweat equity methods and try to get a good deal.  

Here is a local realtor and investor that has classes on house hacking.  https://www.meetup.com/Norther....  
James Orr, I think classes are virtual still but may be in person soon again soon.  He has good branding around this with the tag line Nomad.  Also puts many of the classes up on podcast.  

I think the low money down owner occupant loan will get you to a rental portfolio easier and faster than BRRRR but I built my portfolio BRRRing. I'm working on two BRRRR properties now in Fort Collins so while hard is possible. Probably need to look in to loan qualifications, building income and building credit. I know at least one guy that did it when I was in school.

My sister and I flip in Northern Colorado. NoCo House Buyers is our company. Not much in person networking this year. Hit me up if you want to talk, my contact info is in my profile.  

Deals are still getting done, I think volume is down. I know one new flipper team that did their first flip. A couple of people I know backed off, auction buyers are slow. Other bigger but quiet players are grinding on like usual. 

What are you looking to accomplish?

Seems like a bit of a thin deal.  

Beauty is in the eye of the beholder.  So if you have an owner occupant buyer lined up maybe you can make a referral fee assigning the contract.  

Based on your numbers buying at 83.6% purhcase plus repairs / ARV, is high, I don't see people go over 82% in our area and many are scared of the economy right now and being more conservative.

Sounds like it would be a decent rental, you would have $47,000 based on my numbers after you refinanced BRRR at 75% LTV. Doesn't sound like you have that money available. Not sure if you are qualified for long term rental financing?

$10k in repairs is low, got to be paint and carpet.  Sounds like you're new but have done some good analysis on the property.  

Check on zoning area's around campus.  I think some area's the zoning limits how many unrelated parties can live in the house.  That would mess up the rental by the room strategy.

Don't sell unless you have a plan to turn that money in to more rentals.  
If you need money back consider a refinance, rates are low and that is tax free.  
I feel long term wealth comes from rentals.  

Logan Brown cool to see you got a real estate license and are doing some contracting.
I have 2-4 flips sitting waiting for my crews to free up in Greeley, maybe you want to take on one of the renovations or maybe you want to buy one.  I plan to sell 2 of the 4.  

Now to actually answer the question you asked.  

I would say a quick strengths and weaknesses from what you've shown about yourself on this thread. Strengths - great craftsman and you love doing it, good eye for design, financially conservative can save money and run a project to a budget, FSBO success, possibly willing to do live in flip. Weaknesses - general flipping knowledge, financing, raising money, deal finding, delegation.

I suggest you work on those 3 items J Scott mentioned so that you can exercise your strengths and execute a project.  Work on Finding Deals, Raising Money and Business Strategy.  You probably have to do the last first.  

Strategies that might be good for you, Fix and Flip, partner and flip, live in flip, buy a very distressed multi to live in and fix.  Work as a contractor as an apprentice for a successful real estate investor.  I don't know what you want to do or your goals but I'll talk about fix and flip as your choosen strategy.

Learn fix and flip fundamentals.  Tons of free podcasts, Join ICOR and use the free library to do fix and flip courses, talk to me and borrow mine, buy a course, go through all the BP training and books on flipping.  

Network locally, check meetup tons of events. Tell people the skills you have and your goals and what pieces of the puzzle you have, you have some capital you have construction, you have FSBO resale or you can always get a good realtor, you don't have a deal or skills to get one and you probably don't have full financing to make a cash offer with no contingencies.

Get your financing in place, are you going all cash, are you using hard money, are you going to partner with a money partner, are you going to get a fha owner occupant loan?  Learn the options and pick the best one so you can be confident you can close on a deal you find.  

Figure a way to get a deal.  Learn marketing, you said you talked to people and they had plenty of offers.  Of course they did.  Only 1 out of 25 offers wholesalers make to people who allready self selected and replied to direct mail or internet marketing saying they wanted to sell select a wholesale cash offer.  Did you make 25 offers that fit your conservative nature in the last 6 months of your search.  Probably not.  Get a realtor and work on delegating.  Have them bring you opportunities, you evaluate and offer.  try to find a hungry wholesaler that has a deal but doesn't have construction skills or money.  Find an old vet that is tired of managing bad contractors, split a deal for doing the rehab and learn on the job.  Do any of the things Travis Speer said to do.

Learn deal analysis and valuation / appraisal get access to the MLS.

Definetly a lot to get done but if you start taking action I bet you'll have another project to do what it appears you love to do and make a craftsman home with your own hands with your own great design touches.