All Forum Posts by: Jake Adams

I am securing a private money loan for a fix and flip and need recommendations on how to handle paperwork. I have templates for a promissory note and mortgage deed, anything else? Does title normally handle this paperwork or should I have a lawyer?

Thanks!

Start with knowing where you want to end up. What's your end goal with real estate? There are many different avenues you can take.

I would suggest going to meetup groups and talking to as many people as possible to find out what peaks your interest and once you decide what you want to do commit to it for at least 6 months.

I invested in LA for a while and can give you a few contacts if you want to know where to start

@Emma S. I started out wholesaling in LA in 2011 and it took about 3 months before my first deal closed. I did 5 deals in the first 6 months, but it takes a little bit to get going. I was working 7 days a week 12+ hours a day driving to tons of properties, taking pictures and videos and making as many offers as possible.

It really takes a hustle to get that snowball going, plan on sticking it out for at least a year to see if it is something you want to do.

My main question is how many offers are you making weekly? Need to make offers to get a deal. 

Let me know if I can help, I have contacts in the LA area

Welcome Brandon, I am in Fort Collins if you have any questions

That deal sounds a little tight at those numbers. Here is an example if you get your offer accepted at proposed purchase price:

Purchase Price - $60K

Repairs - $18K (need to have budget for unexpected items)

Closing Costs - $900

Carrying Costs (depends on taxes, HOA, Insurance, etc.) - $1500 estimate

Interest and Points from Hard Money Loan at 2 points and 12% for 4 months (this is a good deal) - $3600

Selling Costs at 6% of list price ($100K ARV) unless you are licensed - $6,000

Total Money in deal - $90K

Net Profit - $10K (11% cash on cash return)

What happens if your repairs are more than budget? What happens if it takes an extra month or two to sell? What happens if you can't sell at your ARV and need to lower the price? What is average days on market in your area? Do you have a good relationship with an agent that can list for you at a discount?

You only have $10K profit in the deal and that is just one mistake away from losing money.

My suggestion is to try and get the deal closer to $50K or double check your repairs and maybe they are closer to $10K. Have you done any fix and flips before? 

This all depends on your dates for your objections, you need to look at your contract and talk with your agent? If you are past your objection deadline then if you break contract you will likely loose your earnest money

@Connor Maloney I am a local realtor and investor in Fort Collins. Did you get the info you needed? Let me know if I can be of help to your brother.