All Forum Posts by: Carlos Garcia

I sold one of them and the other one refinance

I worked with a wholesaler that has a subsidiary lending company. I used them and I paid for a ARV appraisal to determine the amount borrowed. It looks like the appraisal was inflated for more than $40k on 2 properties that I bought to FLIP. I called the lender and ask if they used an AMC and said that they used an individual appraiser. I lost over $40k on one of the properties already. How and who should I go after?

One is selling for $369k (ARV appraised at $415k)

Hard Money lender balance $254k

My own money $75k

and the other for $519k (ARV appraised at $595k).

Hard Money lender balance $368k

My own money $125k

So I started these last 2 flips and finished the renovations within 45 days. We put both houses in the MLS and have had to reduce the price by more than 14% and still no offers. I am getting a little scared as my wife is an experienced realtor and is experiencing the same across all her listings in central FL. Our business real estate coach has also shared that the entire US is like that in almost all the markets.

This is the first time this has happened to me.

What are the recommendations?

1. continue to sell

2. DSCR loan

3. other?

Both houses were financed via Hard Money at 11.99%.

I am currently flipping houses and most of the workers I hire to do work are not licensed (handyman, etc...).  My builder's insurance does not cover any of those workers.  

I need to know if there's a legal form that I can have the workers sign stating that I am not liable for anything.

Thank you all!

Thanks all.  I really appreciate all your input!

Thank you all!

I am having to lower prices more than usual when listing the properties.  Is Flipping risky right now?

Thanks for the info.  How easy to work is Buildium?  The one I use right now YARDI BREEZE has a lot of entries and super complicated.