All Forum Posts by: Colin G Murphy

Hi @David Friesen

I think @Rachel H. has some excellent advice for you there. While living frugally in a lower end neighborhood while you start your flipping/investing career suits a minority of real estate couples, it is not for everybody and certainly not the only option. 

You´re only 21, so maybe starting families and living in good school districts won´t be on the cards for a while, but either way, there is nothing wrong with renting a modest home/condo for a couple of years while you scale the fixing and flipping until you have enough extra cash to finance your own primary. Real estate is best thought of as a "get rich slow" game, so try and keep a few rentals for yourself - building income streams in your 20s gives you a huge advantage.

It might not feel like it now, but the world is your oyster. Many of the older investors on BP would trade places with you in a nanosecond.  

Hi @Michael Thrower

I also use templates similar to the one described above. Lay everything out clearly - purchase, reno, resale, comps, interest rate, loan agreement, mortgage agreement, start date, end date, photos etc.  

If you have no previous flipping experience, most lenders will naturally request a higher interest rate, higher fees and lower LTVs. The alternative is to use "friends and family" money which can be much cheaper but don´t mess it up or Thanksgiving will be painful for years! Be very conservative in your assumptions until you several deals under your belt. 

What about partnering with a more experienced flipper for your first few deals before taking all the risk yourself? It´s a lot safer and you´re likely to learn some lessons the easy way rather than the hard way.

Hi @Tim Ivory

I´ve bought a few houses where an agreement was signed allowing the seller to stay for up to 2-3 weeks post sale. It´s important to verify that they are actually getting organised to move. Make sure that the 2 week right to occupy is in the purchase agreement and even if it is only 7-14 days, additionally get them to sign a lease with a nominal rental payment.

@Cesar Gomez

Whether you have $5,000 or $50,000, invest in yourself and your education before you invest in tangible assets. It will give a higher return than anything else you do. Books, podcasts, REIAs, doing grunt work for others (birddogging, running to home depot, checking in on tenants) in exchange for knowledge. 

@Rosalie Evans

@Justyna Ilczuk has a lot of good points - no need to rush into anything - a lot of homework is needed before buying any property, especially one overseas. As an expat Irishman, I can certainly confirm that getting a mortgage for an Irish property when you don´t live or pay taxes there is exceptionally difficult. 

Hi @Jake E.

Welcome to BP - sounds like you have a great attitude. With a bit of luck, planning and hard work, you can go a very long way. I´m an active real estate investor in Tampa, especially West Pasco. Always looking for enthusiastic local people who don´t mind rolling their sleeves up. I have experience in and happy to connect about buy & hold, fix and flip, wholesaling, tax auctions, foreclosure auctions, note investing and private lending.

Hi @Tim Bergstrom

This guys behavior is not that of an experienced flipper. It is possible that (a) he is not as experienced as he led you to believe or (b) something dramatic has happened in his personal life to throw his business off balance (drugs/divorce/death etc). If it was me, I´d start taking steps to take back control of the property and either sell direct to a rehabber or get a general contractor and manage it yourself. You´re lucky that the market has appreciated considerably in the 10 months this has been in limbo. Get professional legal advice and try to take back control of your property, add whatever value you need to, get it sold and move onto the next thing. 

Hello @Sean Spear

Is it possible to get a conventional mortgage with your wife as co-signer? If not, then you might be looking at helpful friends and family to co-sign until you can refi out at a later date. 

When you say the second home is a foreclosure, what do you mean exactly? The challenges you face will be different depending on what type it is. It is up for a public auction (county court), private auction (hubzu, auction.com), off market pre-foreclosure or listed as an REO?

Hi @Divya R.

Definitely worth finding a local eviction specialist. As every County and Sheriffs office seem to have their own ways of interpreting the eviction moratoriums, try and secure a courtesy chat with an eviction expert to find out how difficult or easy it is to evict a person occupying a foreclosed property. I purchase foreclosures in Pasco County in Tampa and I can tell you that from July onwards, it has not been particularly difficult to secure writs of possession and evict.

PS: Cash for keys still works best and if you do need to evict with a professional, it can probably be done for $500-$1,000 depending on where you live.

Hi @Greg Koszkul

The answers above from @Josh Caldwell & @Steve Morris are solid. 

Will add by noting any standard contract to purchase a property will contain a clause saying prior liens (mostly mortgages and property taxes but also utilities and others) must be satisfied by the seller prior to close. In other words, don´t rush into promising the seller a "net" amount at closing until you have all the info on what needs to be deducted prior to close.

In terms of estimating future taxes, most county appraiser websites have links to a tax estimator where you can input a sales price, uncheck the homestead box, put exemptions to zero and then you´ll get a rough number on what you´ll have to pay next year.