All Forum Posts by: D Higgs

@Deniqua Antoine

Hi Deniqua. Nice post. I am also a new investor in the NJ area and found reading the individual wishes of the experienced members helpful. Thanks everyone for sharing.

Hi BP. I'm currently working on my REI business plan and was hoping some experienced investors could provide some insight. I'm completing a 3-5 year financial projection and wanted to know what factors could (or should) equate to Bigger Pockets. (See what I did there?!). Of course, this is an ideal situation because ANYTHING can happen, however I want to start forecasting.

Here's what I have so far. What else am I missing?

willing to take more chances on larger, more extensive flips for bigger profits

Able to save $$$ due to more experience, tenure with lenders & vendors (better rates, etc)

More referrals with social media, realtors, attorneys, contractors, etc

Get into rental properties that will increase cash flow. Start building equity.

Hire project managers and general contractors to manage projects. Freeing me up to spend more time focusing on finding properties, lead generation

Transition to REI full time

@Harry Neal

Interesting. Can you elaborate on turnover costs?

@JD Martin

:) small world.

I have family now in TN too.. LoL. Either way, thanks for reply. Good stuff.

@Jonathan Greene

Amen. I agree 100%. My frustration was because I was "aggressively" looking for articles, interviewing other investors, etc and the # of out of pocket costs were never disclosed! I never fell into the belief that I could start with $0 of my own money, it was more disbelief that it is never talked about.

Fortunately for me, I have reserves as well as private money lenders that I can work with. I'm also proud that I learned of these costs BEFORE my first deal.

Through my time researching, especially nowadays, repeatedly I have come across articles, YouTube videos, books, ebooks, blogs, etc etc on investing in REI with 'little to none' of your own money. Discussions around hard money, private money, and conventional loans are discussed. However there seems to be MANY fees/costs where the investor will be responsible for...? Or at the very least, (1) consider getting a loan to cover these expenses and/or (2) be mindful of these unexpected costs throughout the project.

Pre-Deal

Marketing fees, training, learning market, travel time including gas mileage, costs for purchasing legal forms & contracts, fees to start an LLC

After Rehab Deal is Accepted

HML origination fee, HML points, Buyer closing costs, down payment, title company, local taxes (transfer tax, prorated property tax,etc)

After Buyer Closing

Dumpster rental & permit from town, buiilding permit for construction, monthly holding costs to pay back HML, homeowners insurance, repair expenses prior to being reimbursed from HML, Marketing fees to promote 'coming soon', dream team fees such as CPA, attorney, and fees to pay for the SOW inspection

Seller closing

Seller contributions, agent commissions, prorated property taxes, title company, attorney fees 

@Randal Ford

Sounds good. Thanks @Randal Ford. A good question was mentioned earlier in this same chat discussion re: myself and the HML inspector disagreeing on the completion status in the SOW. is that common?

@Randal Ford

No ARV in this scenario. Sorry if I wasn't clear. My question is would I be responsible for paying the loan back on monthly basis? I know there are many other fees (origination fees, down payments, closing costs, etc). But once property is purchased, I am responsible for monthly repayment fees, correct?

@Bradley Laddusaw

Great info. I would've never thought about the example you used as far as the HML deciding you're at a different completion %. I noticed that in many cases you're reimbursed afterwards so that was good advice also to have the reserves available.

@Nathan Cross

Thanks Nathan. Good stuff. Those terms weren't from an actual HML... they were just an example because my main question was to confirm if I would be responsible for the down payment as well as the monthly costs to repay the loan.

DH