All Forum Posts by: Jason Norton

@Juan Medina

Fixing flips. Because as you do more fixing flips and make larger income at closing you can pick and choose which houses you’re in really well and it would be more cost-effective to turn it over to a 30 year amortization schedule with a good percentage rate to be able to hold for monthly cash flow

@Kevin Graham

Will you be selling the other property and creating another parcel number?

@JR Rivas

It really depends on how you want to leverage your money. Do you want to leverage this $125000 toward fixing flips to make immediate cash or are you wanting to leverage it towards monthly cash flow.

My recommendation is going to multi family units and leverage your money towards 30 year amortization schedules. We have clients all the time get the best interest rate they can for the longest term so they’re getting the max leverage out of their down payment for that transaction. And we have a lot of clients we do multiple transactions win.

I recommend only saying this one sentence. 

It wasn’t a good fit.

Always remember don’t try to be the hero and don’t try to be the villain. Always make sure you’re helping guide them to the exact point they want to be as long as it is positive.

@D. McNabb

My recommendation when you come in to invest into that type of area you make sure you’re leveraged correctly. I have a doctor that I do trailer parks and other types of multi family properties with. And he is 100% all about leverage. So he calls me we help him do that.

I recommend doing your very first loan is a fix and flip. Just make sure that your leveraging the money that you have down into no more than 75% LTV situation to maximize profit. Then all you're doing at that point is making sure you had the largest spread possible between the purchase in the rehab compared to your final sales price. Or what the comps are in your area for a sale.

@Rodger Curbelo

I would say we need to talk about doing an asset base loan with her credit and the down payment to do your first fix and flip.

I have a couple different wholesalers in Nashville that have produce properties for the investors that I help finance. And right now (Nashville) is hot for fixing flips I mean we’re talking financing more than just a few loans a month.

There are a lot of deals in Nashville you can pick up for $150-$175,000 with possibly 40 to 60 maybe $70,000 in rehab and you’re talking about turning around and getting $325-$350,000. I’ve seen certain instances people are selling for $400,000.

Perfect instance I know the house right now in south Huntsville that you can buy for $560,000 it needs about $92,000 in rehab because I’ve seen the budget. And it would sell for $800,000-$840,000. I was working with a client on the exact deal and family issues arose and they had to take a big chunk of their business money and help a family member out. It was a medical situation.

I recommend getting their parents credit or a possible cosigner involved on their first years rental. Now if they takeoff and go back home for the summer and then to come back and they paid everything beautifully the first year then they can stand on their own.

Rental management company. Pay the 10% and let them handle everything.