All Forum Posts by: Elizabeth Seiferth
Elizabeth Seiferth has started 6 posts and replied 26 times.
Post: Looking for GC recommendations for a fix and flip
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Jonathan Klemm:
Hey There @Elizabeth Seiferth - Congrats on getting a flip under contract! Which Chicago suburb is the property in?
Your general contractor in my opinion is one of the most key members of your team especially if this is your first flip. The thing I have learned through flipping many properties is that slow is smooth and smooth is fast.
Make sure you vet your contractors as thoroughly as you would vet a tenant - I have learned vetting is one of the most important things I can do as an investor.
Thank you @Jonathan Klemm! The property I was looking at (the wholesaler is seeming to have some issues with the seller aka I think the deal is dead) was in Maywood. Though I am looking all over!
Post: Looking for GC recommendations for a fix and flip
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Cam Schwartz:
Hi Elizabeth, two reputable GCs in my network focused on the greater Chicago area are (i) Real Restoration and (ii) Construction Cycle. Happy to connect you if you still have a need.
Thank you! I appreciate the recs!
Post: Looking for GC recommendations for a fix and flip
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Bob S.:
Quote from @Elizabeth Seiferth:
Hi all!
I am about to be under contract for a fix and flip in the near west suburbs of Chicago. Yes, I am putting it under contract site unseen but not to worry, I will get there before the options period expires. Wondering if anyone has recommendations for a GC for a residential fix and flip in the area?
Thank you,
Liz
So how do you put an offer in without know the reno? So, you are tying the property up and may not close as you do not know the numbers. HMM all due respect, not cool to the seller. Seller is an idiot for even accepting your offer. You should always have it walked by your GC BEFORE you put an offer in. This could be a waste of time for everyone. I literally right now have my GC walking 4 props today, in one now. Once he tells me the number, I then make my offer. I will get at least 3 in contract today and close AS IS, ZERO contingencies in 10days /2 weeks. Get your team in place 1st. KNOW all the numbers 1st, then move forward
All the best
Hi @Bob S.
The property was actually under contract with a wholesaler who seemingly won't be able to perform as he committed. I did not lock up this deal as expected for various reasons and I don't believe the wholesaler found an end buyer. The deal had a very healthy spread and I buffered my budgetary numbers by a significant margin as there are always skeletons in the closet, with the intent of having a GC get there ASAP. While I am not a full time flipper *YET*, I have strong knowledge and experience in the architecture, design, and construction industry. Certainly, building a team first is the right way to do it, I think we can all agree there, though know others who buy site unseen via auctions, etc.
Post: Looking for GC recommendations for a fix and flip
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Hi all!
I am about to be under contract for a fix and flip in the near west suburbs of Chicago. Yes, I am putting it under contract site unseen but not to worry, I will get there before the options period expires. Wondering if anyone has recommendations for a GC for a residential fix and flip in the area?
Thank you,
Liz
Post: Fix & flip funding
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Brandon Jensen:
Happy Friday everyone! :)
I am looking for any tips on how to go about getting the green light on getting funded for my first of many fix & flips, I started a LLC a few months back and my credit score is pretty low as I've broke both my legs over a period of time.(healed now) I have someone with a 620 (not the best) credit score willing to help me get into a business loan to try and get around 50k funded so I can use a DSCR loan to get started as id need 20% down. So I was thinking if I could get a small business loan to get my 20% covered and then get into a DSCR loan and be off to the races. Any input, ideas or suggestions on how to get going? Im damned and determined to get going asap and am doing what I need to, to get my credit back up so this is all easier for future flips!
Truly thankful for this group of extremely helpful minds!
Congrats on the LLC! To my knowledge, most flippers use hard money loans as they are often buying distressed properties that will not meet the requirements of a conventional lender. I have not heard of anyone using a DSCR loan on a fix and flip, not to say it’s not possible!
Hard money loans typically come with higher interest rates (10-14%) and often have a balloon payment at the end of the term. They would require skin in the game (cash) and your analysis on a specific deal before funding 80-90% of the purchase price + construction costs. It would be worth connecting with hard money lenders on bigger pockets to learn more.
As for your down payment, I can’t personally speak to a small business loan…you would just want to ensure you include those payments in your analysis and prepare to be repaying the small business loan and other holding costs during the flip.
Good luck!
Post: Is California a good place to start ?
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Bailey Brown:
I’m very hesitant to obtain my first real estate investment being in California. What are some good strategies for the California market that work for people? Would anyone recommend doing my first investment out of state?
Hi there! It honestly depends on your strategy - LTR, STR, flip, wholesale, etc. the tenant / landlord laws in CA are in favor of the tenant which often scares people. But the appreciation you get on properties in California is worth it. Prices are high which makes it a tough market to enter but if you have the funding and find a solid deal, I don't see why you'd pass it up!
Post: Subject To with Equity
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Could you put any money down and then seller finance the balance? IE - a hybrid like suggested above.
I am looking at a property in which I am going to see if the seller would consider a hybrid scenario. In my situation, the property has been listed for 130 days at $649k. They have a 2.9% rate on 385k which I would want to Subto. I want to keep the entry cash at about 10% of the purchase price, and will see if they would entertain seller financing for the difference (roughly ~200k). It would be a short term rental and would provide about 2k of cash flow a month versus a traditional purchase which would maybe break even 🫠.
Or if you don’t have the 100k and they won’t entertain seller financing, you might be able to find a private money lender for the 100k!
Post: Pace Morby Program
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Justin Rush:
Hey BP,
After spending >50-55 hours of watching and researching Pace Morby's videos and training; looking to get some actual students insight on the ROI of the program. Everyone in the forums continually say, "all up to the person, made back my money and more", without ever saying how many deals they've done, what Intrinsic value was provided, etc. seeking ACTUAL results, ACTUAL deals done, ACTUAL ROI please.
For reference, I have capital, time , and a relentless work ethic. I was seeking the membership program to leverage economies of scale and ultimate velocity of my capital.
Want to get a last sanity check before forking out > $11,000 in the program membership.
Any and all feedback welcomed.
Post: The California Housing Speculation Act
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Quote from @Zarrin M.:
Hello!
I’m very new to real estate investment community (literally two months into learning via reading, joining bigger pockets), and have yet to invest in real estate, so please be kind in your response. Thank you!
I'm learning about all the different types of REI and house flipping seems to be the one I have the most interest in. However, I recently learned about the AB 1771: The California Housing Speculation Act that took effect on January 2023. The new bill imposes a 25% tax penalty if there is resale of a home within the first 3 years.
Link to bill: https://leginfo.legislature.ca...
Questions:
-I was wondering if anyone is aware of how much of an impact the tax penalty will have on the house flipping industry in California?
-The bill also raised a social question I have about the impact of house flipping on communities with historically low socioeconomic resources. Any thoughts on this?
TIA!
Tahirih
liz
Post: Looking to connect with like minded professionals
- New to Real Estate
- Carlsbad, CA
- Posts 26
- Votes 21
Hello! I am based in Carlsbad, CA and I am a brand new wholesaler looking to connect with likeminded individuals - investors, agents, wholesalers, etc. I've been absorbing BP and all things RE over the past few years, and am hoping to buy a STR very soon and build a portfolio. Cash flow has been very hard to find in on market deals with rates and prices right now, so I've been getting set up to start wholesaling to build more capital. Let me know if you'd like to connect!