All Forum Posts by: DAVID SCHREIBER

I am looking for my first flip.   It would be a DIY affair with maybe 3 other guys.  The house we are looking at needs shingles, siding a kitchen and 2 baths.  Plus a furnace.  If I plan to replace the sheetrock and insulation, which I can do, we are basically talking about building a brand new house.  At the right price we can do that so it's not a deal breaker.

But just to make an observation it would almost be cheaper to knock the whole thing down and start from scratch.  And that would allow for a better floor plan too.  Not going to do that but at some point it seems crazy to restore some of these houses.

Looking at a foreclosure.   One of the upstairs bedrooms had this sticker on the wall.

In the basement and the garage it appears that they sprayed white paint of some sort on all the surfaces.  Either to improve the appearance or to treat mold.

Any idea how we should evaluate this variable?  Have it tested?  Run away?  Poke a hole in the wall and see what we find?  Fix the presumably leaky roof and don't worry about it?

Thanks

That's what I was thinking. 

If I wanted to explore lenders, what do you call a lender who makes these kinds of loans?  Hard money lenders?

Thanks

I am a newbie outside of Syracuse NY.  I am interested in trying my hand at a fix and flip.  I may have the opportunity to borrow the investment capital from a family member.  Not as charity or a favor but as a win - win proposition.  I would expect this to be a formal arrangement where I pay interest on the loan.   We are talking about a purchase price of maybe $120K, $30K in repairs and a target selling price of $210K or so.  So I would borrow $150K for what I hope would be 6 mos.  3 mos to rehab and 3 mos to sell.

My question is what interest rate should I be willing to pay?  The benchmark for me would be what I would have to pay in fees and interest if I borrowed on the open market.  What would that number likely be?  I know there are a lot of variables: my credit rating, location, the deal, etc but could people give me some idea?  Thanks

How do you make sure that there aren't liens or other debts that are secured by the property?  Have those already been wiped out by the primary mortgage holder? 

How does all that work?

@Brian Taylor - How are you making out with this transaction?  I would like to learn from your experience.