All Forum Posts by: Jonathan C.

@Account Closed it wouldn't be a mortgage... it would be some sort of credit line product most likely. You can't get a regular 30 year mortgage loan on properties that need a lot of work.

Single family flips for the time being.

@Christopher L. it was a listed short sale that I was aggressive on and offered incentive to agent.

I offered the day it hit the market, called up the agent and said I really wanted the house, talked about how many houses I've done, and told him I would waive my commission as buyers agent to him as listing agent. That last thing in particular seemed to be something he wanted, so I got him an offer right away at a price he thought was going to work for the seller.

Waited, waited, waited (like 3 or 4 months) then bought it.

@Bryan H. haha crap. Forgot a '1'; 11/18/13 is what that should have said.

I have credit line (called a guidance line of credit) with local bank that funds most of my flips. I had only flipped 3 or 4 when I got in touch with them, but they were still willing to take a risk with me. Without somewhat of a track record, I think getting any sort of 'big money' type financing (like not hard or private money) will be really hard if not impossible, but probably still worth trying to find out more about local requirements for institutions in your area.

My credit line, as I said, is guidance line of credit that then has individual notes and deeds and trust underneath of it on individual properties that it funds. It's like 1-2 pts and then prime +1 interest rate.

Acquisition- 70%- based of lesser of purchase price or appraised value. Purchase price is always the lesser (duh) so it's always based on that.

That's it- no rehab costs or anything.

Recommendation: try to partner with your mom- use her financing sources- do a few with her (2,3,4) so you have a track record to show, then beat the street until you find a bank who will give you something like what I have. I had to call about 20 banks to find mine FYI.

Just sold this flip in PG County, MD a couple weeks ago. #6 of 2014. Hoping for at least 20 this year.

I'm not sure of best format for posting pictures and the profit breakdown. I have a spreadsheet that I use that calculates my 'pro forma' profit and then I plug in real numbers and it gives me my real profit plus or minus like $1,000. I could probably post that if you guys want.

For now, I'll just put everything in this post:

Purchased 1/18/13; $63,000

Sold 4/2/14; $184,900 less $4,836 seller subsidy

Rehab: $55,760

Closing/Holding/Etc Costs: $24,000 (comprised of hard money costs at 12%, $9k closing costs on sell, $8k closing costs buy)

Net Profit: ~$38,000

@John Weidner actually I got a contract on the house after being on market about 20 days. Great house but had a back yard that sloped severely from house behind this one which turned off quite a few buyers.

Current contract (assuming goes through) is $410k with 3% closing help. I function as the agent so have 3% commission for buyers agent, and then of course closing costs will come out of that, so probably net like $375k after all that stuff.

@George P. haha thanks man. Yeah, I actually wish my kitchen in the house I live in was this nice :)

@Michael H. thanks. we have a competitive market here, but it can definitely be done in our area.

I have a credit line with a local bank that funds 70% of the acquisition cost (none of the rehab), so that's funding about 50% of total project cost, and the other 50% is from the piggy bank. I use credit line and when cash gets tight switch to hard money and some private financing.

Sure, happy to connect, PM me.

I buy everything at target- mainly online because I'm lazy. I used to have my contractors or a handy man assemble everything. Now I ship it directly to the person who moves the furniture for me.

I started with 1 house worth of furniture- 1 living room set, 1 dining room set, 2 bathrooms, assorted small stuff, wall hangings. And have kept acquiring as my business grew. Now I have about 5 houses worth of stuff.

I keep it all in a storage unit and found someone on craigslist (which will take some trial and error) who moves it around for me for about $250 per move.

@Account Closed and everyone else-- thanks again.

@Andraise Scott feel free to PM me with what you have in mind. Thanks

@Kevin Pfeiffer you can use a list broker to get that information. I use 'list source'. They have equity % options, total assessed value, homeowner age, and tons of other factors you can sort your lists by.

@Gary Threadgill bought it Jan 6, 2014. Started working around Jan 15, 2014 and finished work end of March, so about 2.5 months. It's longer than it should have taken- should be like 10k/week so should have been about 2 months max, but we ran into issues with the windows and that delayed things.

This was a listed property- short sale. Was listed for like $275k; I offered significantly less- $232k. Agent was willing to get seller to sign off on it because she knew me from some other properties she had seen that I rehabbed and so was willing to get my lower offer ratified.

And she is a really good agent and so was able to do the real work which is getting the bank that owned the loan to approve that price.