All Forum Posts by: Brandon Stiles

I'm currently located in Northwest Arkansas (Walmart HQ) and just closed on my first flip a few weeks ago. Over the past 4 months I sent out about 3,000 letters to a semi-targeted list (2% reponse rate), made 1,000 cold calls (25% response rate), had multiple investor friendly realtors looking for oportunities, and of course checked zillow/realtor daily. I ended up getting lucky and finding this one on zillow.

The biggest problem I'm seeing is that everyone in my area wants close to retail price for fixer uppers - and people are paying it. I have a mentor whos been investing in the area for 10+ years and he's only found 2 flips this year. My goal is to scale my flipping business to 10+ homes a year and I'm starting to wonder how viable that is in my area. I've been tossing around the idea of relocating (not solely for real estate but it is a big factor) and I'm wondering what areas have the best potential for flips over the next few years. Bigger price gap between fixer uppers and retail... I know Florida, Texas, and North Carolina are seeing huge growth but I don't really see myself moving to any of those states mainly because of the hurricanes/floods/and the heat in Texas.

I'm assuming the problem I'm having is a result of the high insterest rates, housing shortage and affordability, but I'm wondering if it's like this everywhere right now?

Any thoughts?

I've been using ListSource to create a direct mail/cold calling list but for some reason when I try to target homes with a specific number of bedrooms it gives me zero results... I can put in all the criteria I want and it will narrow down my results as it should - but as soon as I specify # of bedrooms it drops down to zero. Has anyone else run into this issue?

Aside from what others mentioned above (the door locks, drywall in basement etc.) I would suggest repairing and staining the fence, pressure washing patio and walkway, fixing the blinds that look crooked in almost every picture, and removing the desk lamps in that room. The room is already small, those lamps protruding out make it seem even smaller. The little details can make or break a first impression.

Welcome to BP! I'm new to REI so I don't have a ton of advice to offer but like @Billy Daniel said, there are a couple different groups that have local meetups. Rei-nwa.com has weekly meetings on various topics and theres a lot of experienced investors/real estate professionals that attend. It's a good way to connect with people who share similar interests. You can pay a membership fee or $20 at the door to get in.

@David M. You've made a lot of good points. The goal is to be able to fund 2 projects at once with my own cash. I just wasnt sure if a $300k BLOC would be more easily accessible than waiting until I have the cash on hand. 

I do plan on keeping my primary for at least 2 or 3 more years and I should be able to get around 130k HELOC on that and maybe I can get an additional BLOC a couple years down the road to help get me to 2 deals at once in a shorter time frame.

Thank you for the thorough response @Kerry Baird. I'll definitely check out MyFico!

Thanks @David M. You think hard money would be cheaper than an unsecured BLOC? Even if I've built up a relationship and history with a local bank?

****Just to clarify, I'm talking 2 or 3 years down the road after I have successfully completed 5 or 6 flips and have the additional income and experience to show for it.

I'm working on my plan to start flipping houses and I figure if I can work my way up to a $300k line of credit for my LLC I can fund 2 rehabs at once and cover carrying costs without having to use my own cash. I have over $200k equity in my primary and I will be taking out a HELOC to fund my first deal but looking ahead - I'm not sure how long we're going to hold on to this house so I'd like to focus on building a business line of credit that I can always depend on.

How hard is it to get approved for a $300k line of credit especially considering my LLC is brand new? My wife and I currently have about $120k in W2 income and I plan on keeping my W2 job until I can no longer justify it. Our combined DTI is around 30% right now. My wife will be keeping her job indefintely and I will be the one "running the business." Can I use my wifes income to help qualify for loans if we both personally guarentee it even though I will be the sole owner of the LLC? Or would she have to own over 25% of the LLC?

Any input would be greatly appreciated!

@Bruce Woodruff I'm considering acting as GC on my own flips (mostly cosmetic) and plan to hire insured 1099 subs to do the majority of the work. If all subs have GL and workers comp and I have an umbrella policy for my llc does that mitigate most of the risk? I have some experience working on flips for an investor so I dont feel the need to hire a GC to run the projects especially if they're mostly cosmetic.