All Forum Posts by: John Cunningham

@Jaylan Archer 

That is exciting that you have started your own flip! I think that relationships and action is the key to real estate investing. I think @Wendell De Guzman gave some great advice and it awesome to get some direct referrals. A couple things that we have done to create relationships with wholesalers are calling bandit signs that seem to be posted everywhere in Cincinnati right now. We have made some good connections that way. We have also called Craigslist adds and been to the Cincinnati REIA wholesale subgroup meetings. I hope that helps.

Hello BP!

I recently received an invite from my hard money lender to a seminar about the current market. The discussion is focused on how the experts are saying that the housing market has rebounded but many investors are having trouble selling rehabbed properties. Has anyone run in to this issue?

Is this just the case in Cincinnati or is this regional/national? If there are any experienced flippers out there that have an opinion on this I would love to hear it.

@Stephanie Watkins 

I agree with @Robert Laird. Especially in this market, it is much more difficult to find good wholesale deal than it is to find a buyer. If it is a good deal, you should be able to move it quickly if inventory is as low in your area as it is in Cincinnati. There is always the option of doing a JV with another wholesaler you bring a good deal and another wholesaler has a cash buyer.

@Account Closed 

Good information to think about for any newbies thinking about starting with a hard money lender. One thing that we found out on our first deal was that our HML had a couple thousand dollars in fees that we hadn't anticipated. Mostly ambiguous fees that really didn't mean anything other than the HML wanted to squeeze more out of the deal. In addition to that, they had inspection fees for any draws made through out the project. If you are starting out with little cash reserves you may need draws very frequently and it can really cut in to your margins. We are working with the same HML but now we include those number into our projections and allocate enough cash to use a few inspection draws as possible.

@Pedro Duquesne I came across this old post of yours. Have you had any luck locating a good property manager in the Cincinnati area. We are in the process of purchasing a multi-family property in Cincinnati and looking for a property manager.

thanks,

John Cunningham

@Joseph Jackson welcome to BP! My business partner and I are fairly new to real estate investing here in Cincinnati. We are mid-way through our second flip and currently in the process of purchasing a 3-unit in the area. There are tons of financing strategies on BP that should help you grow your passive income empire. Feel free to PM me if you have any questions or there is anything we can help with.

Thanks,

John Cunningham

@Chris Martin - Thanks for the information!! What type of interest rate in typical for a smaller short term loans? From what I have seen, most people lending through a self-directed IRA are looking for an interest rate between 8-12%. Would you say that is typical for these smaller loan amounts? Thanks!

Hi Michelle!

I am currently working with Build Realty. So far they have been great. Feel free to PM me with any questions. I am attending their free seminar tonight. It may be valuable for you to attend and ask questions.

Hi @Wendy Doris! Sounds like you have some great experience flipping! As far as building processes we have started using Podio.com to standardize our processes. We began using it for wholesaling but it has project management apps that may be useful for flipping. We plan to start our first flip in the next couple of weeks. I will let you know how Podio works for managing the project.

Welcome @David Hayes! I would love to learn more about your experience with a hard money lender as we have been toying with the idea of using one our selves.