All Forum Posts by: Christopher Phillips

@Chan Reagan

Welcome to BP...

No. 1031 cannot be used for personal property.

 If you're not waiving the usual contingencies, then you are protected. If you're sending in discounted offers, then you are taking a lot of the risk out.

It helps if you know your numbers really well.

 Welcome to BP...

As soon as you say "wood" you're talking about a carpenter or a general contractor. 

Are you doing the work yourself with family and/or friends?

@Natalie Kraft

As a seller or as a buyer?

@Nikola Magdelinic

Per Hubzu... "Some liens that exist prior to the foreclosure may remain in place after the foreclosure. Properties are sold "as is" or "where is" with faults and limitations. Prospective bidders are encouraged to conduct independent due diligence such as performing a title search or seeking outside legal advice prior to the sale."

@Sergio Ramirez

Welcome to BP...

How many units are in the building?

@Jeffrey Bresch

You can't seller finance a foreclosure. Seller financing requires that the property is actually sold to you with title and the owner is holding the note. If you buy with them still holding a mortgage, that's a Subject To and subject to the previous owner not paying their mortgage and/or the bank calling the loan due - with a change in title there is nothing behind the mortgage anymore. 

There are some occasions that a property going to foreclosure has some equity, but most owe more than what the home is worth. BRRRR assumes you're buying at a deep discount, not over paying.

@Bryan T.

I guess it can work either way. 

If you communicate your goals and game plan for building your portfolio, when you partner with your team members they need to know what you're working with. This way, they can help you meet your goals. People tend to give you what you're asking for. If you tell them $150,000, they aren't going to bring you better opportunities that might be still in your "real" budget and actually better meet your goals.

@Bob Daniels

The whole point of reserves is to make sure you cover yourself over time. That time might be 5 years, or it might be 10 years, or it might be 20 years. At some point, something is going to go.

@Angela Stevenson

Basements aren't considered part of square footage if they are below grade (below land).

Do you plan on living in the property? Or will this be a rental? Do you know the local laws regarding renting out a basement? 

If you're going to live in the property, you can use cash or a 203K loan.

If you aren't going to live there and will rent out the property then you can't use a 203K. You would either have to use cash or a hard money loan.