All Forum Posts by: Jason Kim

Andy thanks for pointing that out. Actually
130k would be on the little higher end property estimated but more realistically, it would be around 110k to 115k range. And if all works out, i want to sell the house at 100k or 95K. Does this sound more correct?

I didn't think about the "earnest money" for a second, and as you said the first money that goes out to show the consideration is the earnest money.
Guess i can try to negotiate like that untill i have enough money to buy property at full price for now.

Thank you for your reply and the advise J Scott.
okay.. the cash buyers have more chance to get the deal then financing, but can i put down larger downpayment around 50%?
if the banks let me do that then would that give more interest to banks to negotiate?

Hello Dee thanks for your response.
I do have a local bank in my area who can finance. And yes, i will look forward to do some negotiations and will make the final bid at around 40-50k to fit at my comfort level. The areas where im targeting, homes are selling around 130k, and ofcourse i have to make it to be best price house in the block for a fast sell. Total rehab money that i want to put in is about 15k cash and additional 20k for down payment.

I want to buy REO property to fix and flip. Looking to buy one around 40k to 50k range but fund is not fully available. Ofcourse the one that i would buy would be the best one available for my criteria, and may also be the one that many investors would favor as well. Therefore, im assuming that few people could bid the deal at same time on that property. So i would like to know..
1. if i use bank loan to purchase, would i loose the deal to a cash buyer if there is one with same bidding amount? and what happens if i bid higher than a cash buyer?
2. since the property is REO property, do banks prefer cash buyer for properties around that price range?

Thank you in advance. :lol:

Vic L. - Again thanks for taking your time to share your thoughts and experience. I actually wholesale fashion costume jewelry to many Beauty Supply stores in south side of Chicago and I know decent enough about different areas. But didn't really think about doing investing in those areas untill recently after talking to an investor and from hearing from you as well. I am gonna have to do some detailed researching on some of the area where I would consider an area with higher ARV and hopefully soon I can get my feet wet on flipping homes, and sell some jewelry to a BeautySupply Store next door too. :wink:

Thanks for your time Vic L. I've learned alot!

Vic L. thank you for taking your time to answer my questions and you've explained it very well for me! Yes you may be right about how alot of investors are targeting to do buy and hold in that area. The investor that I've talked to last week is doing buy and hold along with his other investors. I will be talking to him again this week and I will try to update why they are chooing these cities to do their investing.
I was going to just jump on flipping with my guts but you've made some points that had me stop from jumping in. Like about being confortably ready after doing enough research is important and also gettting a R.E. license to get an access to MLS and making extra money from the commision sounds good. And bringing extra money to do some staging would make some major difference on selling the house and I'm not prepared on that part also.
It looks like my research should continue on before making any mistakes in the field.

Thanks much and have a great day!

Vikram, I know eventually that I have to agree with you. If I can get the extra funding from someone like in my family, then why not do it by my self. My wife actually agreed on that too and I am starting to realize that I have to make this project of my own. Having control on my own would definitly make a difference on experience.
Thanks for clearing that up.

Thanks everyone for taking your time to reply my questions! Elisha I guess you've got your answer pretty quick!

Steve, when researching the target area, should I use a realtor(whom I've never worked with)in that town who knows that particular area better? or should I use a realtor who I normally work with and doesn't know much about that area but digs in MSL to research informations needed to know to decide on purchasing?
Which realtor should I triy to work with to find the best informations about that area to decide on purchasing the house?

Vic L. - I feel very comfortable and more confident that someone from local area had gave me an insight of Chicago market for rehabbing. I was looking into doing some projects in far south suburbs like Dolton, CountryClub Hills, Calumet City, like in those areas. Do you know if these areas are wellor at least okay targeted to my first project? is it good and woth it?, and what do you think of my question to Steve?

Thanks much!

I know the market got slow down for flipping properties, but still I would like to ask these questions so I can understand how and what everyone is doing.

Questions for active rehabbers..

1. Are you currently active on flipping properties even on this market? And how often do you flip houses?

2. And what are the most important things I need to do in order to flip properties still even on this slow housing market?

3. Your rehab is done but not selling, what do you think the problem is? And what do you do with that house now?

Hope you would understand that I'm trying to get in rehabbing but don't see this big "green light", and also hard to meet an active rehabber to ask these questions.

Thank you in advance.