All Forum Posts by: Bret Emry

Do you know anyone who flips or wholesales? Just a suggestion, you might start by calling the "we buy houses" numbers on posters around town and see if there is a potential relationship there. Those may be buy and hold investors, flippers, or wholesalers. Even flippers may assign contracts (like wholesalers) depending on your relationship and their deal flow. I am not up to speed on the regulations there, but you might consider putting out some signs of your own. Spokane is a great place to invest, although there are some neighborhoods you'll want to avoid. 2% is hard to find if you're just browsing the MLS. I've seen a couple but they were multiple SFH buildings on one site that needed significant work OR larger converted multifamily in less than desirable areas.

@Trevor Tilton

What you have outlined minus the HML step is exactly what my wife and I are planning... flipping to ourselves. We have a HELOC ready to go on our primary residence. Haven't pulled the trigger yet on a purchase because our money has been tied up in other short-term investments (private lending).

How long after you purchase an investment property do you take out a HELOC? How long after that do you refi to conventional?

Hey @Tyler Carlson, welcome to BP and to Spokane! Have you been wholesaling and/or flipping already?

Welcome to BP @Brian M. Great place to ask questions! Any specific questions yet?

Welcome @Brandon Ryan! Have you listened to the podcasts? They are a great learning tool. Another thing, if you haven't yet, you'll want to set up key word alerts. I have "Spokane" as one of mine. :)

Have you met anyone local in the business who can teach you or work with you on deals (even just to help analyze)?

Where in Spokane are you looking to invest? Single family or multi?

@Account Closed

13) Can you use two different loans from two different private lenders for financing one single home?

I can tell you that this happens because I am a private lender currently lending on two properties as second place lien holder on both. I understand the risk and can expect higher returns because of the additional risk. You need to have a good trust relationship with your investors and vice versa. I am investing in property, yes, but I also need to see it as investing in a person (the rehabber/flipper) so trust is key.

Sorry this is long, but bear with me.

I have a coworker who recently inherited a 3/1 house (built in 1928) from his in-laws on 1.25 acres in Post Falls, ID. It is in a trust that is being transferred to his wife soon. He has no interest in holding on to the property and sees it as a big headache. I told him I was interested in it as a rental until he told me that it appraised for 194k. There is about 20k left on a mortgage but no other liens. It is currently being rented for around 600, but could probably rent for closer to 1k given its location. Either way, as a rental it doesn't really make sense for me. As a flip, maybe... but he was told that the land could go for as much as 150k. Since the house is such a small percentage of the value, does it make sense pursuing as a flip?

A few details: 80’ wide lot, newer furnace, metal roof, collapsed out-building on the property that needs to be removed, needs electrical panel replaced (which I can do, assuming local code allows me to), needs siding or paint. It’s kind of just ugly and needs some TLC. Also, it is currently being surveyed to see if the neighbor’s fence is where it should be.

I think there is opportunity to make this deal a win-win for the both of us. I have about 35k to use right now, so my current thought on how to structure it is to put down 20k (enough to pay the mortgage off) then ask him to hold a note (with DOT) for the purchase price less down payment. 10-15k should give me enough to make necessary repairs, some cosmetic upgrades, and clean up the place for curb appeal. I could make monthly payments, with a balloon at 2-3 years. Then pay him off when I sell, hopefully within a matter of months.

What questions can I ask or information can I gather to help analyze ARV and end up at a decent offer price? I am working with a Spokane realtor to pull comps, but I don't know that that is sufficient to work backwards to an offer price. I know about the 70% rule and how that works. Anyone in the Post Falls or Coeur D' Alene (CDA) area that can help determine ARV?

@Bryan R.

Thanks Bryan. This seems like a good change for rehabbers, wholesalers, and other investors in WA. As Jay mentioned, the law was violated often. It just didn't make sense especially for those who hold their flips in LLCs. The requirement to use a licensed and bonded GC for flips to me is much more logical.

I am hearing that the washington state anti-flipping law (the requirement that a licensed contractor be on title if purchased and sold within one year) is being lifted by the end of this month. Can anyone confirm this?

@Brandon Turner

@Nghi Le

Hi Jeff,

Great to have you here!

Agreed, the podcasts are an excellent resource. Also, if you haven't already, you will want to setup automatic keyword notifications. I saw this post because you are from my area :)

Sounds like you are wanting to own rentals is that true? Are you wanting to flip too?

Have you read any real estate books?