All Forum Posts by: Brian Porter

Okay great! I really appreciate the input. If I can find private money I definitely will. I'm very new to investing so I'm guessing that I'll need to establish a bit of a portfolio before I can convince a private lender to work with me. 

If anyone could just let me know if I am on the right track here that would be awesome! 

Here is a simple scenario as I understand it:

I find a house with an ARV of $350,000. I offer 70% of that minus $50,000 for repairs bringing a (dream land) accepted offer of $195,000.

Hard money lender most likely gives me up to 70% of the ARV max as a loan or $245,000 (includes rehab costs).

The terms would be:

-30% down - $73,500 

-Loan balance - $171,500

-4 percentage points - $6,860

-15% APR - 6 month project - $12,862.5

Total cost at closing - $80,360 plus origination fees etc...

Total cost of borrowing money $19,722.5

Am I grasping this or am I way off? If this is the case I plan to set aside $150,000 over the next couple of years in order to make sure I have a solid footing before getting into the fix-and-flip game. Does this sound reasonable or should I consider waiting until I have more liquid assets?

I would very much appreciate any input!

Best regards,

Brian Porter

I appreciate the warm welcome all! I'm finding this site to be extremely helpful and there seems to be a forum for virtually every question. I appreciate the motivation that it provides to ACT. Analysis paralysis is alive and dangerous.

Hey all!

Brand new to the site and looking forward to networking with all of you. My wife and I decided when we got married at 19 and 20 years old <----- (you read that right) That we wanted to be our own bosses and go into real estate. 7 years, lots of school, and endless research later and we are finally taking action! I am planning to get started with conventional sales/wholesales and quickly transition into rehabbing and long term investments. It is great to see the wealth of knowledgable investors here that are willing to share with novices like myself!