All Forum Posts by: Jasmine Claye

I am looking into Loan financing for my first flip. Can anyone tell me the best loan option for flipping? I've heard that banks and certain mortgage companies want you to keep the house for a period of time, a couple of years, and would more than likely not loan me anyone more money if I sell before then. Is this true? What is the best option for buying, renovating and selling all within 6 months or so? I want to keep a good relationship with the lender.

Thats a big difference in profit. If I invest 110K into he house (purchase + reno), and it sells for 160K, I should only assume a 16K profit? I know unexpected costs may come up but I would at least think I would net a profit of about 30K. Am I wrong to think that?

Thanks for the responses:

Sorry I left that part out. I was leaning towards a house of around 80-90K. I know each house is different but compared to Aaron and Jon's information I am now assuming that it can be done for that much. I do understand though that location and material costs can vary greatly from area to area but I am determined to find a house for this price range (80-90K) and renovate it for 30-40K. I believe that it can be done! I plan on purchasing the house, estimating my costs of time & materials for the work that I will do myself and then take a walk through with a GC for all the work that I plan to allow them to do for costs estimates. Once I have these estimates I will take a look at all costs and decide if it is a Go or No Go for my price range (30-40) on a (80-90K).

I watch a lot of RE shows about flipping and solely renovating. I know that there is more behind the scenes then what is shown on TV but on these shows, they seem to be able to do a renovation for between 30-40K. Including kitchen & bathroom. Reading some of the threads on here, I have seen that people claim that 30K would only cover the basics. Painting, Tiling, Cleaning. I know of a local place that sells quality yet cheap cabinets, flooring, doors, etc so this is where I will buy from. As a carpenter I figure I can purchase these & install them myself and leave the major work to the contractor, plumber, electrician, etc. Saving me a couple thousand bucks. So my question is, how likely is it to be able to do a renovation for 30-40K?

Ok Jon, so what would you say is the best way for a newby to enter the real estate field before they can start to fix and flip?

I am not able to PM you because it is not allowing me the option of becoming a colleague.

Interestingly enough, I just learned about HML recently and I was told it was good for beginners. But I believe you when you say that it is not. I originally wanted to do a conventional loan but I was told only certain houses qualify, which I have yet to figure out which ones do. I am currently interested in flipping, and then maybe have a few rentals later in my career. The books that I have read have taught me about REO homes and the examples in the books didnt seem to bad or unrealistic (as far as % down and a lot of other things banks require for a loan) but I am learning something different on BP!

Wow, I had no idea HML was that expensive. These numbers ($1633) imply to me that beginning investors already have a lot of money, in order to be able to make these monthly payments. If that were the case, maybe they wouldnt need HML or not that much of it. I understand credit score, etc. may be an issue as to why they would need HML instead of traditional lending. Renting is a possiblity but it still seems to be a lot of money.

So my issue is, trying to figure out the best loan and route to go, just starting out. Only certain houses qualify for Conventional Loans. Can someone tell me the typical houses that Conventional Loans qualify for? HML seems to be a little too expensive.

Since these calculations seem to be accurate, is this calculation stating that this is the MONTHLY interest payment?

Loan amount = $140,000
(140,000 x .14) / 12 = $1,633 monthly payment

6 months down = $9,798

If so, what are the monthly payments disregarding tax and insurance info due to the fact that this information is not given.

Also, is the interst considered the down payment ($9798) or is there another down payment?

BryanA -

The East or South Side. The East side being close to Independence, Hickory Grove, Monroe & maybe a few other areas. I reside on the East side & I must say I love it! I think this would be a great place because there are a lot of neighborhoods, stores & restaurants nearby. Can you tell me about where I may can purchase a home for as little as 15K that shouldnt need about 100K in repairs?