All Forum Posts by: David Vander Pol

@Andrew Syrios 

@Melissa Nash

@Peter McDonough

Thank you all for your input. I was thinking it would be impossible to find a lender that does a higher LTV than 75, but it never hurts to ask. Mellisa, I'll DM you. Thanks!

Hello,

I'm looking for some lender recommendations (nationwide or local to Huntsville AL and Jacksonville FL) that will do a min 80% LTV for a BRRRR cash out refi. I'm having a tough time getting numbers to work with the typical 70% when analyzing deals.

Thanks!

-Dave

@Andrew B.

Thanks, Andrew! I appreciate your input. I have read The long distance investing book. It's one of my favorites. I guess I am more interested in the detailed specifics of when things happen. I've heard some investors say that they send out their own people after an offer is accepted, and I've also heard other say they get a GC out before an offer is even put in. So there is just some ambiguity there for me and how all that ties together in coming up with a rehab cost...it's definitely an art form I suppose.

Hey @Frank Wong. Thank you for the feedback and candid advice. I appreciate it! 

We're not looking to flip–it's not our cup of tea. Just buy and hold. So what you are saying makes sense to start with one that requires less work. 

As far as trusting someone, I know at some point we just have to go with our guts and take a leap of faith with whoever we decide to business up with as an agent/wholesaler/GC/PM/etc.

Where abouts in East Bay are you? We're in Union City.

Thanks, again!

This question is in reference to long distance investing using the BRRRR process, and about analyzing deals, figuring out rehabs costs, running numbers and estimating ARV's etc, etc.

Almost every listing/lead I receive typically only has a few pics. With so little information at hand it is often–almost guaranteed–to be impossible to calculate any sort of rehab cost based off a small amount of pics or what an agent or wholesaler says needs to be done. 

Yes, you can pay a GE to go out there and take a look and report back to you with an estimate. But that typically will only happen AFTER you get an accepted offer, during your due diligence period. And that SEEMS plausible only if your lucky enough to have a GE willing to take the time to do that–even if you pay them. So you get caught in sort of a catch 22 situation where you can't really calculate an offer amount unless you have a rehab cost, yet you can't really get a rehab cost unless you make an offer allowing you to send a GE out to get a quote.

So how is everybody doing this?

Just to be clear, I have not done this process yet, as I never get past the running the numbers part. They always seem like bad deals because I'm trying to parse ALL the things listed in Jay Scott's Book On Estimating Rehab Costs, and there's just no way to suffice all that info based off of a few pics and what an agent/wholesaler might say a property needs. Pretty much every property that I've tried to analyze becomes impossible to do so due to not being able to figure out everything that needs to be done.

Ex: I can look at a picture and see that it needs a complete rehab, but I can't really measure the counter space to find out rough costs, or measure the flooring to do the same, or know what pipes are going to need to be replaced, or how much open square footage of wall space there is in the kitchen that needs to painted to calculate that. None of that can be determined off of a pic. And that doesn't even count if it's a 3b/2b, but there's only one pic of one bedroom and one pic of one bath, or how high a tree is that needs to be cut down, or what the square footage of that walkway is that needs to be repoored.

Overall, it just seems impossible to do calculate any rehab cost at all...ever.

So what am I missing here?

Thank you all!

-Dave

Congrats, James!

Two questions:

Are you working with the original wholesalers you received references for? AJ Cole and Lenny Herald?

-Dave

@Dennis M. Sorry for the late reply. Holidays have been busy. :^) Thank you for your perspective. I agree with you in the fact that you don't need to be a mastermind to be successful at this stuff. That being said, if one does not need to be a mastermind, it makes me curious (and nervous) as to how much one's success depends on just blind luck. AKA a deal comes across my desk and not someone else's. Ya know?

@Jim K. Also, sorry for the late reply. Amazing Teddy quote my friend. And very inspirational. Thank you!

@Darren Cusanelli Awesome and direct strategy Darren! Also a great opportunity to spend time with your family and still move forward with REI. Super cool approach!

@Jay Hinrichs Great input, Sir! I'll look into J Martins events. I am trying to connect as much as I can with local investors. Totally agree with you on being comfortable wearing landlord shoes. It takes a specific mindset to push through the issues that tend to come up every month. 

@Account Closed very good point with the national vs. local demographic observation. Currently I'm trying to analyze one deal a day, then after the holidays are over and the new year starts, I'd like to start ramping that up more. I'm using the "The Book on Estimating Rehab Costs" to try and get a rough idea of how much things cost, and get better at that so I can run numbers more quickly. But I still need a lot of practice.

Thank you all for your input! Happy Holidays!

@Nick C.  Thanks for your input, Nick! I completely agree with the "no wrong way to do real estate" idea. Even the worst of deals can still become a good deal if given enough time. Right? 

@John Warren Yes, I totally agree with you in regard to local meetups and taking action steps to accomplish your goals. I LOVE how you stated investing should be like "watching the grass grow". Again, I completely agree. Thanks!

@Corby Goade Thank you for your advice on ignoring all the noise, and breaking it down into attainable steps. That is, indeed, our approach to REI. I'm trying to focus on a single deal in the first quarter of 2019, like you mentioned. But it is difficult to omit said noise when you are passionate about something–you want to soak up as much as you can. :^)

@Frank Wong Sounds liek you are echoing the mindset that Corby suggested, that is, filter our thoughts down to a focal point and go from there. It can be frustrating, because I can definitely see that making an RE deal is simple as you say, but getting to that point seems the tougher process.

Thank you all for your comments. We appreciate it!