All Forum Posts by: Chris C.

We own a brokerage (Pride Realty SC) in Easley, own multiple rentals, and flip 6 to 8 properties a year. We have also partnered with a couple of fellow BP members.  We enjoy helping people get started in real estate and I enjoy talking about it so feel free to contact me anytime.

@Austin Mudd @Manolo D. is correct.  Your numbers will be significantly higher.  The ratios and prices used in that spread sheet are based on my personal numbers in a very specific area of the country.

As you described that is exactly how I use that sheet and it does prove to be very close.  Every rehab I do is complete interior paint, all new floor coverings, new counter tops, new appliances, usually new interior doors, some minor repairs are assumed, and all new electrical and plumbing finishes.  Anything above that you will have to estimate and add to the sheet in the additional expenses area.  I generally do not do very expensive rehabs until this last home which needed all new mechanical.  Plumbing, Electric, and HVAC.

@Austin Mudd I no longer use that spreadsheet.  I have moved everything into Podio.  I still do the same calculations but with in an app in Podio.  I do still have the old spreadsheet and here is a link to it.  It is in Google Sheets so hopefully you can view it.

https://docs.google.com/spreadsheets/d/1ietviqVtOj...

Please let me know if you have any questions. 

@Roland Hefner Just received this email yesterday that perfectly answers your question.  I still use it but on a limited basis.

The Dodd Frank Wall Street Reform and Consumer Protection Act came into effect January, 2014 and there is a small part of it that applies to real estate investors- particularly their exit strategy on property.

If you finance a single-family house to someone who is going to live there this applies to you. This includes contracts for deed, lease purchase agreements, bonds for title, etc.

if you sell to another investor or to someone going to rent to someone else this act does not apply

Three categories –

Category 1 – you (individually, trust or estate) can sell to one homeowner per year and Dodd Frank does not apply. LLC's, etc. do not fit under this exclusion

you can have a balloon payment

you don’t have to have proof of purchaser’s ability to repay the amount owed

payments must be fixed for five years then can vary two points a year up to a max of six points. The original interest rate has to be based on prime rate or another accepted interest index like Treasury Bills.

Category 2 – individuals, trusts or estate (LLC's also) – up to three home occupant – buyers per year

no balloon payments

you must determine the purchaser's ability to pay the amount owed- there are eight criteria you have to look at-current or reasonably expected income or assets, current employment status, monthly mortgage payments for this loan, payments on other loans secured by this property, payments for property taxes, insurance, HOA dues, etc. required to service this loan, debts alimony and child support obligations, debt to income ratio and credit history. These are all probably things you ought to look at anyway but you would be required to do so in this situation.

again fixed rate for five years then variable two points a year up to six years, original rate has to be based on prime rate, etc.

Category 3 – more than three owner-occupied deals per year – you must be a licensed mortgage originator and you are subject to the same limits as category 2

I’ve got four takeaways from this:

1) the government is probably not going to come after you – an unsuccessful and disappointed buyer and his or her lawyer will

2) you could wind up paying the buyer back 36 months worth of payments plus attorneys fees

3) if you’re going to do the one transaction with an owner – occupier through a lease purchase, bond for title, etc. put language in there that Dodd Frank does not apply to this deal – that way your buyer cannot come after you by saying they thought it did apply.

Dick Stewart, Attorney

We have done both with the mobiles and then sold with owner finance. We have gotten away from that due to new regulations on financing.  

@Roland Hefner  My wife has been involved in real estate for nearly 20 years.  We have been investing personally for about 7.  Started with flipping mobile homes and are now flipping 4 to 5 homes a year.  Currently have 10 rental properties.

@Roland Hefner  Welcome to BP.  My wife and I are investors in Easley,  We flip and have buy and hold properties.  We also own a real estate brokerage so if we can ever be of assistance just let me know.  We enjoy helping people get started in real estate and I enjoy talking about it so feel free to contact me anytime.

Welcome Ken. My wife and I own a Real Estate Brokerage in Easley. We also flip 3 to 4 homes a year while building a rental portfolio. Look forward to seeing you around the site and would love to meet up face to face someday for a chat. 

Hello Ira and Ginger.  Welcome to BP.  Feel free to contact my wife and I if we can ever be of assistance.

I currently use Podio and really like it.  I have playing with Evernote lately to see if I can integrate it into my system.  Seems to be very easy to use and has a lot of benefits that would not replace Podio but help it.