All Forum Posts by: Tim Ivory

I agree. I would simply ask them to use the funds I've given them and live out of a hotel for a month. I would even offer them $1000 out of my own pocket. I am pretty confident of a few hard money lenders lined up, and I also mentioned this would be my 1st flip, and they said the numbers work they are all game. I was also planning on utilising private money for the down payment for the hard money loan common which is usually about 10%. If this is possible , I will pursue it , but, at my also be tricky finding someone to lend for the down payment since it is also my 1st investment and I understand usually they prefer to work with investors who had a sum flips under the belt already.   I will see how this goes. Thanks guys!

I have a pretty good prospect on My 1st fixed and flip house after putting up some bandit times around my area and was able to find a house valued around 200 K and asking prices around 120 K With about 15K work as far as I can tell. Now he asked me a pretty interesting question that I didn't really know about, and he wanted know if it would be possible to live in the house after I purchased from him for a short time until they find their own house to live in using the funds I've given them for the deed. I Will be financing this property the normal way using a hard money loan. Am I right to assume that a hard money lender would not approve of this And is it true that a hard money lender only lend if the house is vacant? It is easy to anticipate that quite a few things go wrong in this scenario, like they could take a very long time to find a house to live in, Even months, and things could get really ugly if I would be forced to evict them which could take who knows how long.

Is it unheard of to put into a contract saying that the seller has 2 weeks to move out of the house after the sale and The deed is transferred over Using a hard money loan?

Hey guys, is this still the case, to use hard money to buy properties on auction.com?

Just wanted to update this. 

The roof is confirmed to be 15 years old.

I got some guys giving me satellite estimates to re shingle and its settling around 11K.

Will let you guys know how it turns out.

How serious should I take the cost approach to value of building the place new in today's currency and how does that potentially relate to a projected ARV?

The AS IS value is 140K and the Cost approach value is 202K, while still the ARV is unknown. Furthermore, without clear comps, I wonder if a HML will take my word or a local realtors hunch feeling on the loan, haha, so perhaps, no comps means no deal, despite how good the deal could potentially be. That's how I'd play it as a lender anyway.

Furthermore, it's a bit unclear how the depreciated value here comes into play. It says 104K in depreciation and 112K for cost of improvements, yet it doesn't subtract that amount, but settles at 202K for indicated value. Can someone explain these bits?

Cheers

What do you guys think of buying your first fix and flip in this environment? Is it too risky? Should I add a 5-10% margin of safety in my loan to value for a HML. This is probably a good question to ask my lender, direct from the horses mouth, haha.

Cheers

Thanks guys. That clears things up perfectly :)

So we have a few things going on. We have an appraisal, and ARV, and potential Market Value and all three could be different. The bank and realtors could all agree the ARV is 100K, but if there is high demand and multiple buyers, the house could sell for 130K, so its actual value could be anything. It's good to keep this idea in mind, but for all intents and purposes, assume it'll be slightly lower than the ARV would be safe.

The tricky part is, even if there is high demand on the property, what lender would go for paying 30K above the appraisal and project ARV? So in essence, perhaps what the the threshold banks would agree to loan is the more closer to the true market value, if the buyer doesn't use there own funds, but I digress.

Thanks guys.

Sometimes its tricky finding answers to very basic questions but I need to verify that an appraisal report is usually the current as is value on a property, is that correct. Is an appraisal the minimum current value on the property? The house appraised for 140K but needs 40K of work with sparse comps, so its not clear cut what the ARV on this is. Just because a property is appraised at 140K and I put 40K of work into it, doesn't mean its ARV is 180K, correct? Heck, even if I put 200K of upgrades in it, the property won't be worth 340K.

Very clearly, an appraisal is the current AS IS value of the house. It is worth that much despite the roof leaking etc, right.

An ARV is an entirely different ballgame, right? Or, is the answer to these questions specified in each of the reports and it could vary, sometimes its the AS IS value and sometimes its the ARV?

@JD Martin Awesome. If you ever want to connect sometime in morristown or knox, hit me up. I go to the REIA there when they have good presentations.

Currently looking for nice deals for a fix and flip around these parts (like everyone else, haha). Let me know if you can help. Us BP members should stick together. 

Cheers

My dad is retired military, so its seems there are some nice options available for either navy federal or marine federal (which he is already a member of). Is my search over? The plan is to renovate and sell asap, within a year in and out, so prepayment penalties need awareness.