All Forum Posts by: Eric F.

@Brent Hill I am curious what you mean by this "Well, my deal has yet to close, but I have a contract at 93K. will net about 13K at end of day...better than wholesaling but not a homerun by any stretch of the imagination."

Why do you say that is better than wholesaling/assigning? Do you think you could not have made that much wholesaling or assigning it? In your opinion, did wholetaling it result in a better sales price?

Also, do you feel like wholetaling it was more or less work than wholesaling it to an investor you know (if you have established relationships, which I am not clear if you did before this)? I've been thinking about listing some deals on the MLS before beginning rehab work. My plan was more to close on it, list it until I started my rehab work, and if I got a good offer just selling it as is, and otherwise fixing it up. I figure if it is on the MLS for just 2 weeks I will already know by the action and offers if it is worth selling as is or fixing. I am in an extremely hot market so all it takes is 2 weeks to put almost anything reasonable under contract.

13k is not a homerun, but you do one of those a month you are in the top 10% of all income earners in the country (overall, not just real estate)

I'm curious...does anyone who has a rental with a 1 car garage have a tenant who parks in it? I do not think I have ever seen a renter put their car in the garage.

I really enjoy going to the seller's house in person, walking through the property with them, hearing their situation, and figuring out a solution to their problem that works for both parties. 

I do not mind the phone, but I enjoy being there is person a lot more.

@Chris Martin originally I had included an at mention of you in my post to get your take, but I deleted it. I always appreciate your input into any topic for real estate in this area. 

I totally understand why a lender would want a tenant in place. It just doesn't work for me in these situations because I need to know exactly what terms I could get for a loan and know for a fact I could be approved before I place a tenant. Without this I'd rather just sell the properties when I'm done. 

The worst case scenario is I get a tenant in there and then a bunch of lenders tell me "Hey, you don't have a W-2 job or 2+ year track record of X income in your real estate company...DENIED" and all my cash is tied up in 2 properties I cannot sell. 

@Neal Isaacs I probably bid on 60 doublewide trailers on .25 acre or more lots within 90 minutes of Raleigh over the last 2 years and never won one (all on auction.com) . Sometimes I would get outbid at the last second then the property would be there again a few weeks later. I was told the banks are allowed to bid on their own properties and do so in North Carolina (I don't know if this is true, but someone told me it was). I just quit trying to use auction.com after the 20th time I lost a property at the last second then saw it for sale again.

Biggerpockets is a great site and all but their guidelines eliminate virtually every property in Wake County. We have very low vacancy, very low days on market, higher property values, pretty low property taxes, all of which let you pay more than 70% of ARV-Repairs (for a flip) and buy at less than 2% of the monthly rent (for a hold). I'm doing a flip in a neighborhood where the last 4 houses to hit the market were under contract in less than a week (I think 2 got multiple offers and a signed contract in 24 hours). 70% ARV-Repairs factors in 6 months on the market I think. The difference between a theoretical 6 months and what is actually the market reality in Raleigh right now is basically 6-8% of ARV for a 150k house just in holding costs alone (assuming a hard money loan and other holding costs).

My company has some holds, some flips, and hopefully I am about to start selling more with owner financing and/or lease options. I also do wholesales.

Before this year, I did not do a ton of activity so taxes and bookkeeping were easy, but the this year I have really picked up and I am getting smoked in Bookkeeping. I would like a comprehensive system or great guideline to setting up my own and I do not have a problem paying for it. Hell, I would even hire someone to come to my office and do it for me if there was a person in Raleigh who could!

landlordaccounting.com looks pretty awesome, but I am curious how it would implement flips, owner financing, lease options, etc. It is only 99 dollars so it is not some crazy investment I need to overthink. I almost bought it on impulse but I figured some feedback here would not hurt. I searched but the threads I saw were only focused on the landlord aspect. Honestly, even if it is nothing more than a good base to start with, and I can add my own methods for flips etc, that is fine. 

(yes I am a former CPA (still certified) who slacks on his own bookkeeping...cobbler's son wears no shoes etc.)

I read your FAQ. I want to lock down my refi first before I put a tenant in it since I could sell these properties just fine. I appreciate the time, but I don't think your product is what I would be looking for.

Hi,

I have two properties I bought and rehabbed with cash and want to do a cash out refi. Originally I planned on reselling them on the MLS but I would rather do a hold if I can refi them at a reasonable rate and get my cash out. If I can get 70% of appraised value for each one out I am fine with that, but more would be better on one of them for sure.

The two houses would appraise for 120k and 100k.  I would like to do them individually. 30 year amortization, reasonable interest, etc.

Where I have some trouble is I do not have a W-2 job anymore. I also do not the income track record in real estate to apply for my refis "the normal way." I am sure other full time investors here understand this problem.

What banks would you recommend for this? 

I've wholesaled a few deals recently. It is competitive both finding good deals and selling. My last 2 the first person I showed took it. They were legit deals though, which I am not sure can be said for most of the "deals" I get in my inbox.

Homevestors runs a "Deal Makers" session the first Monday of every month at the Cambria Suites near the airport. They present their deals and allow non-Homevestors people to present deals as well. I sold my last deal here.  It is a good place to go to get the feel of the market. TREIA presents deals too, but I usually have a scheduling conflict on Tuesdays (when their meetings are) so I do not go there often.

I would advise you to go to networking events. I do not send out blast e-mails or anything like that. I have a few people I have met at these events and I let them know about most properties before I present them to the general public. The one I did at the Deal Makers session last month I only presented to get the experience (and to sell the deal hah) 

If you try to stick to the Biggerpockets guidelines around here all I can say is good luck. You can forget about the 2% rule, hell 1% is hard to find in Raleigh. 70% of ARV - Repairs happens sometimes, but our houses are much more expensive than the houses that rule was created for. If you are buying a 50k house you need to be in at 70%, but a 250k one you can go higher and still make a profit.