All Forum Posts by: D Higgs

Currently in the process of running numbers getting more and more comfortable with analyzing deals. Came across an interesting video that made me curious if anyone had previous experiences with this sort of financing. Does anyone have thoughts (good/bad) on Non QM loans? I know the pros/cons of Hard Money loans, but from the few sites i researched it seemed Non QM loans are much more attractive. Please advise!

Calling all NJ fix & flip investors! 

Are you using the 70% buy formula for calculating your buy price? My target property & market consists of: 

- B/C class areas in Northern NJ,

- SFR or condo, under 1500 sq ft, 2 bath max

- no major renovations (foundation, plumbing, additions, electrical)

With the current RE market, (ie: low inventory, scarce contractors, etc) I was hoping to learn if current fix & flip investors out there were using a different % to calculate if he/she would even entertain a lead? 

DH

I have interviewed several hard money lenders, and as expected, none are willing to finance an entire deal (purchase + rehab). I am including the money costs in my calculations to fund a deal and remaining amount needed to fix/flip is still out of my range and financial ability. With that said, I've started looking into utilizing a second source of funding where i have private lenders invest with the remaining portion. I know, there will still be cost involved but it would be worth it as i would gain experience.  

My questions for the BP community are listed below. I can/will research the topic by looking online and interviewing investors, but i was hoping BP could point me in right direction. This way i am prepared when i present to him/her. Thx in advance.

1. what are the main concerns a private lender would have?

2. Are there "companies" that i could partner with to provide the remaining funds.. outside the funds the HML would provide? Every HML looks like they require first mortgage on the property. So are there companies that wouldn't require first mortgage, can close quickly, minimal terms, etc.

3. Any posts, articles, or videos that are recommended i look up?

Thx

Hi @Rob Moogan thanks for the share. I, too, would be interested in a resource such as this. I think it is very helpful.. my only concern is finding values that are updated at least yearly. I'm sure you know the market changes so frequently that being able to access data like this that's updated would be helpful. Could i ask where you got this resource from?

What would the appropriate adjustment be when calculating the cost of your subject property when the comps have:

+/- bedrooms

+/- garage (detached)

My market will be in the NJ area. Thx.

Hi @Aaron W. Good info.. Can you recommend how i would find such data? Websites? Local township offices? Sounds like information from census.gov? Thanks for your help.

Thanks @Will Fraser! Question- Are you looking at pics on the MLS, zillow, etc to see homes that are pre-renovated? I've been driving for dollars in areas i'm familiar with - but one of my concerns is making sure I work smarter, not harder. I'm constantly thinking am i looking in areas that are dying? Am i wasting my time? So... I'm studying absorption rates now but to be honest it hasn't quite made sense yet how i would apply to my flipping dreams lol (but give me time) :)

Hi BP

I'm interested in what sites are recommended to become familiar with help in researching a market area. My strategy, fyi, is to flip properties initially, and then migrate to rentals down the line.

Some metrics I've seen are: (1) days on market, (2) house price range including property taxes, (3) local proximity, and (4) # of properties sold within last 3 months.

Again, any other websites or metrics I should consider? Thanks in advance.

@Whitney Hutten

Thanks Whitney. I will definitely take a look. I have a draft business plan with all the details you listed. Im still finalizing the entire plan which goes over details such as executive summary, marketing plan, org structure, my team, geographical area, lead generation, and more.

This particular post I hope to gain insight on factors that will lead to increase growth.

@Andrew Carlson

Very very true. Noted.