All Forum Posts by: Craig Anderson

I do about 5-10 a day myself. For #1, ask someone you know, if anyone, who is a contractor or in construction to give you general numbers. I asked my cousin who has been in construction to give me general figures for rehab costs for cabinets, floors, roofs, etc. And a lot of this is online.

For #3, focus on a city/area and you will get to know the neighborhood.  I focused on one city to understand the rent prices, general home prices, and other key factors. Now, I've moved onto another city, and another. Once you practice in the same area, you'll start to know rental rates, what houses typically go for, and other details.  For example, in the area that I look at, most houses are older, have 3 Bed/1 Bath, but there is room for another full bath and probably a half, and I know how much adding a bath would cost, and then other things that I would typically do in the house.  

So, the key is to practice and it just sinks in after X-amount of analyzing deals.  Good luck!

SoCal continues to have a housing shortage, and they are expanding along with new businesses flocking into downtown.

Hi Alex, it doesn't always have to be the "typical" scenario to house hack. You can get a SF Home, and rent out a room or 2 (depending on the size of the house) or if it comes with a basement, rent out the basement.  Be creative, and then when you're ready to move, you can continue to rent room by room with the existing tenant, or let the tenant know that you're changing the property into a whole house rental. So, the tenant can rent the place themselves, find roommates or move onto something else.  Good luck!

I would suggest, if you credit and income qualifies, to purchase as owner occupied and think of House Hacking if that is an option. You already know the issues, so plan for repairs in the loan. You can most likely get a low or no money down payment.

Or, as Gregg stated, see if he will do seller financing.

Lastly, you can go for a lease-to-own option.

Since, you have friends in the industry, they could advise you best that suits your specific situation.

From my understanding with Private money loans from the people that I've reached out to, the typical rate is 9%-12%. I would offer what you are offering especially to someone you know. Where else will you get 10% back on invested/saved money along with all money invested back in 6-9 months?  I would prefer to pay everything back in the end, but everyone has their own philosophy.  I would always have a contract written even it's from an online source. It protects you and the investor.

I'm not sure the exact details, but I'm sure he ran it through his real estate business.  I just know some of the aspects as he invited me to join.

Your REFI is 70-75% (which ever percentage you use) of what the ARV is. Sometimes you will get money back, sometimes break even, and sometimes you leave money in the deal.

To find your ROI just divide NOI by total amount you put into the deal. Hope that helps a little.

My brother, who has been in RE for a long while, just started one last year. It's basically like you stated. Find investors-local or not-to invest $1000K and up and a standard 8-12% ROI once after REFI. You just need to find the people that you trust and who trust you.

Nice work! This definitely helped me by just hearing what you did and how you got things accomplished.  

Thank you! I appreciate your clarification on this topic.  Yes, I was referring to how much I could borrow for "cap" question.  I'll be reaching out to lenders over the next 2 weeks to see where I'm at and what I can expect in a loan.