All Forum Posts by: Jack Yu

@Prash Sun I know this is an old post, could you share the experience how you handle the tenants?

Thanks!
 

Hi BP!

Have a potential deal and hoping to see what are my option to get the offer accepted by the seller. From the description my agent sent me, it is selling As-Is so I do not know how fast the seller wants to get pay.

-This will be my primary resident, the town I’m in has extreme high demand, 4 family unit does not come by easily. This will be positive cash flow after I rent out the 3 units out.

-Asking price $580k for a 4 family units

-ARV $690k

Option to seller:

1). Offer $580k cash offer from hard money lender (close quickly and no wait for seller)

2). Offer $590k with FHA and 203k loan (process will be longer 1-3 months to get the loan)

3). Offer $600k with seller finance for 6-12 months terms

Any comments or recommendation is greatly appreciated.

Thanks!

Thanks for the feedback @Enrique Huerta. Yes this will be my first deal doing flip. 

If you are in my shoe with option 3, what % would you ask so it fits your investment requirement?

Hi BP members, I'm planning to JV a fix&flip deal with a experienced investor, below are the 3 options he is proposing..I'm looking for advice if you are in my shoe, which option you will do without hesitation.

Purchase: $310k (included $20k wholesale fee)

Rehab: $80k

ARV: $500k

Potential profit after all expense/holding cost/paying hard money lender and etc: $70k

-My part: invest my own cash $115k-$125k depend on which option I go with below
-JV partner: project management for the rehab, his partner which is a broker do the listing of house once it is ready for sale. Does not put in any cash, his responsibility is managing the project from rehab to sale of the house. He is proposing the following split where he gets the most of profit since I'm passive investor (bring the funds only).
I want to know what others see as potential red flags?

Thanks!

In summary, there are 3 main options:

1. You buy the deal at $310k, ABC's wholesale fee will be baked into your loan with the hard money lender, and we do 60/40 profit share between XYZ Development (aka XYZ, my renovations company) and you/your company via a JV agreement. You would be sole member of LLC that owns property.

2. XYZ submits for loan with you and closes on property with new LLC. You pay $20k ABC fee outside of loan and we are 65/35 (XYZ/you) partners on LLC.

3. If you don't want to be on the loan at all and willing to pay the ABC wholesale fee at closing, you can be a gap investor to fund 1) ABC fee, 2) down payment on purchase, 3) first payment to contractor and 4) carrying costs for the duration of project. XYZ will form new LLC to purchase property. I can give you 25% of the profit either as a member of the new LLC or via a JV agreement.

In addition to everything mentioned above, on options 1 and 2, I am open to giving more equity if you are willing to buy it at closing. For example, if you want 20% more equity (worth roughly 20k based on projections), I would be willing to sell to you now for an additional 15k with all other terms remaining the same.

@Barry Ruby wow this is good info, will send you a PM now. Thanks!

@Tyler Gibson thanks, I'll connect with Greg Junge and see how it goes.

Greatly appreciate for the quick reply. 

Thanks Greg, I'll try to reach out those builder/realtor.

Also, I notice your title show as developer, by any chance you know anyone down in Orlando area where I can connect with?

Thanks

@Tyler Gibson Thanks for the reply. Do you mind share this gentleman's contact info so I can connect with him?

Thank you.

Thanks for the reply Greg.

I notice the 2 lots sold recently for $33k and $35k so base on your suggestion to sell to builder I'll probably take a lost of $30k+.

Is this my best option to consider?

Hi BP family!

I'm looking for some advice. I own a vacant land in Mascotte, FL about 40mins west of Orlando.

Recently I saw two new vacant lands got bought by a developer/builder and they are building a brand new construction home on these 2 lots (12625 & 14599 Square Feet or 0.28 & 0.33 Acres) , the finish date is around Jan 2020. The two new homes already listed with realtors and list price is around $223k to $225k respectively, the house is about 1520-1530 SF.

So my question is the follow:

-If I can put down 20% my own money and borrow the rest with hard money or private money will I still able to make some profit after I build the new home and sell it with realtors?

-What is an average new construction cost for a 3 beds/2 baths/1 garage home in Mascotte?

**I purchased the vacant land 10 years ago for $66k (yeah I know I probably overpaid it at that time).

Hoping to get some suggestion or comments to see how can I maximum my profit. If anyone know any home builder/developer in Orlando area that are investor friendly I would like to connect with them as well.

Thank you for taking the time to read this post I know everyone's time is valuable, really looking forward to see everyone's reply.

Thanks,

Jack