All Forum Posts by: Devin James

Hey Tomas Ploquin,

Great question. In regards to flipping, the house "appreciates" through the work you have done to the house to make it more appealing to buyers. For example, if a house has old carpet throughout and bright yellow paint in the interior with old brown kitchen cabinets, a flipper will take out the carpet and replace it with nice tile, paint the walls a more appealing color, and repaint or insert new kitchen cabinets. All of this work will add value to the home and therefore make the home "Appreciate". 

You can estimate the "appreciation" by looking at other homes that have sold in the area of the home you are looking to flip. Lets say you see a home that is the same square footage and has the same qualities as the house with the old carpet, ugly paint & old cabinets has recently sold for $100,000. Then lets say you see a home that has similar square footage and floor plan but with the updated interior sold for $200,000. You can assume that if you make the original uglier house look more appealing, then the home will "appreciate" $100,000 by the time the renovation is complete. 

It gets significantly more complicated than that but this is where most people begin to grasp the basic understanding. When comparing these homes, you will need to make sure the homes are all in the same general area. In many cities in America, the value of two similar homes can be significantly different than the each other because one home is only half a mile away, but in a worse neighborhood. There are many other metrics used by flippers to determine the future value of the home. You and I will learn more as we continue our journey.

Good Luck!

Hey Nicolas Pretelt,

I've never been in your situation of wanting to add another person to the title with an FHA loan. But I will say that if you transfer it to a LLC, most mortgages have a "Due on sale clause" which states that the full balance of the loan may be called due upon sale or transfer of ownership of the property.

Best bet would probably be to add their name to the title, but i'm not sure how that process works. Im sure there will be someone who knows more that can help.

Good Luck!

Hey Grant Sicard,

Bigger Pockets is the best community to grow your knowledge on real estate investing. To grow exponentially, I recommend you to go to local meetups to meet like minded people in Iowa. You will be able to meet investors, agents, contractors, lenders, property managers, etc. 

Good Luck!

Hey Benjamin Carver,

I like how you focused in on the type of person who you want to be, and worked from that point of view. 

Many people have different goal formats. This year i'm trying performance oriented goals rather than results oriented goals. Example, instead of having a goal to purchase 1 property, the goal is to send 1 offer a week. 

Good Luck!

Hey AJ Wong,

Great post, seems like i've learned many of the same lessons in my journey. Emphasis on "It always costs more" "It will take twice as long". But I really enjoy point 5.1, it is vital to have a good perspective and enjoy the process.

Hey Bryant Sala,

I think many people will agree that if you have a low interest rate, then you shouldn't trade that for a higher one. Borrowing at 3% or lower was an amazing opportunity that many people wish they took advantage of.

If you run your numbers and think that your capital can go further by refinancing, then go for it. But it will be difficult to find a deal that justifies letting go of that lower interest rate.

Good luck!

Hey Kevin Kim,

I think most people advice would be to speak with an attorney in your area.

That being said, there is usually an answer to every problem and there is probably a way to make this property work financially. But you should ask yourself if its worth the potential headaches & time commitment.

Hey Matthew Nosal,

Looks like a great deal, congrats! Holding costs adding up quickly is a great lesson to learn which I am learning now. Time is definitely of the essence.

Good Luck!

Hey David Yue,

I would start by asking yourself what you consider a "good investment"

Everyone has a different criteria. But many investors look at cap rate & cash on cash return. Since you stated that you have little to no experience, I recommend that you take a little more time researching and learning through books or podcasts. & I would focus on what type of returns you should look for, specifically with cash on cash return since I believe its simpler to understand.

Once you find out what return you are looking for, then I would do some deal analysis through the Bigger Pockets calculators (Tools Tab). Then you should be able to come to your own analysis on what is the best decision for you.

Good Luck!

Hey Tiger Lilly,

I think its hard for a member to give you an answer without you clarifying your goals & market. Do you want to make a bunch of money asap? Do you want cash-flow? Appreciation? A little bit of both?

Either way, it seems like you've been doing well for yourself. So you will likely put the capital to good use. Keep it up & Good Luck!