All Forum Posts by: Matt Crusinberry

 It's different for different areas, which I assume you know (i.e. L.A., Austin,  Miami etc...). So, if you're in a coveted market,  1,000-50,000 a unit would be too good to turn down. Otherwise, run your numbers, as things that are too good to be true, usually are.  I hope this helps, and feel free to DM me for follow on discussion.  

Good luck!!!

@Account Closed, have you tried visiting the local court house where the property resides? Have you reached out to local agents or looked on zillow for properties that are near it, and jumped on the county website to look it up? Have you downloaded one of the many app's that help you look at properties to find owners or jumped on the local GIS system? Have you reached out to skip trace companies or looked into other companies that will give you the info you're looking for and so much more? If not, feel free to reach out and I would gladly help you figure out the information you are seeking. Also, show you how to find it in the future. There are many avenues one can use to look up properties, good luck!

@Ashton Patterson, NO... However, if you give a little more information, I might be able to help you out with your reasoning for obtaining a partner and other options you have outside of partnering on an FHA. Or, if you have a reason for using an FHA, as there are different lending options out there to consider instead of an FHA. And just keep in mind that anything that deals with the GOV is very strict. Also, if it's more personal, feel free to DM me and I'd be glad to help point you in the right direction. Good Luck!!!

@Joey Gorombey, I found that local banks will do this for you, vs going to hard money and increasing your risk. Our bank offered us 80% on buy, with IO payments for 6 mo. to a year. They were also going to give us the differences in funds (for fixes) from 75% of new ARV from appraisal.

Ex:

Property cost 195k, 30k needed for fixes

2 appraisals are done, 1- current value or asking price (195k) and 1- for after repairs are done value (ARV 300k)

Loan 80% LTV (156k bank, 39k me), New ARV 300k (banks willing to give up to difference of 75% LTV, 69k to fix property)

Then I can either refi out or hold what is in place of 156k + 30k = 186k 

I hope that makes sense... Please feel free to DM me, and I would be glad to help point you in the right direction. Good luck!!!

@Chris Dye, I have one that I created, and would be glad to hand it off to you. I'll DM you, to get your info... Let me know what you think, and obviously feel free to add or take away anything you feel is necessary (EXCEL). We switched over to a PM, as we continue to pick up more. Congrats on your 1st rental, that's awesome!!!

Also, feel free to reach out if you have questions. I will do my best to answer, and if I don't know something, I'll help point you in the right direction. Good luck as you continue to grow!

@Abby Austin, There's actually an individual on here that seems to be the SME of IUL, and I believe would be able to help you out. Here is his page, and I would recommend you reaching out. I tried to tag him, but it wasn't happening so I'm sending you to his BP page (Thomas Rutkowski). Good Luck!!!

@Rukhsana Saleem, I have developed a questionnaire that I use for PM's, to determine who's the best fit. Feel free to PM me and I would be glad to send it to you. Good luck!!!

@Aaron Rowland, I would suggest picking up a couple of Brandon Turner's books (or the many others on BP), and continue learning. I would also recommend that you attend a local investor's meetup, and start to learn your market. Learn what a good deal looks like, and why, and learn how to run numbers.

You mentioned that you want to enter with little of your own capital. Is there a reason for this? Do you not possess the capital or the funds, should things go wrong or unexpected (things to consider)? I believe you'll need 3 things to do a deal: capital, knowledge, and time (i.e. effort, or sweat equity). The capital can be from the seller, private funds (friends, family, or hard money lenders, etc...), institutional funds (banks), partnering (using OPM), etc... Since you're just starting off, I would say your knowledge isn't exactly giving too many people a warm and fuzzy; which is why continuing learning is super important. Now, if you have tons of time, and you have a great understanding of construction and willing to put in that sweat equity, you'll be starting with a leg up. You may also want to consider "House Hacking." 

I hope this doesn't deter you, as my intentions are to help point you in the right direction. Please feel free to reach out, and good luck as you begin your real estate journey!

@Scott Brown, It has been my experience that banks will typically accept offers in and around 80% (give or take a few percentages). However, it's usually different for different banks and their thresholds based on market norms (i.e. Wells Fargo is willing to let properties go at a lower rate to empty some of it's inventory, pre-covid... while smaller banks hold onto it until it meets their reserve price, which is typically around 78-86% or as I've found in my area). If the property keeps starting over to be auctioned at a new date, there may come a time where they'll just start it off at that price or their reserve price as it were. I hope this helps in some way, but it sounds like you have the right idea.

Something to keep in mind, and that I would recommend, is that you run your own numbers for the property and it's ARV. Don't base your offering price off of their numbers. Do your own homework, figure out your maximum offer, and go from there. I wish you the best of luck!

@Adam Hinman, While I don't take away from the wholesaling game or those that participate in it, I do however recommend that you familiarize yourself with your local, state, and federal laws. You don't want to be caught holding the bag when something falls thru, and lawsuits or fines are being thrown around. Also, there's more then enough information on here (BP) that should give you enough to get started. What you're embarking on is more than feasible, and has been done thousands of times (as you appear to be aware of). I'm a big fan of Wholesalers!

You mentioned that you don't have anyone near you that you can learn from, but I would say that you're also not putting yourself out there. For instance, where are you from? Maybe consider adding your city/town into your bio on BP (along with a picture). Give people reference points for starters, this is what I would recommend as an immediate response/answer. This will also help you when you do find people of the same mind set, you can reference Biggerpockets. Have you looked up meetup.com, landlord/REI websites for your local or surrounding areas, or thought of the possibility of starting one for others to come to as well?

I would say it's the little things that you do, built up over time, that will help you in many different facets of this business (and life). I'm sorry I can't give you more direction, but if you wanted to PM me, with more info, I would be glad to help point you in the right direction. At the very least, tell you how I go about it as an end buyer. I wish you luck!