All Forum Posts by: Account Closed

You should also look for an investor friendly lender who uses appraisers who will come up with an ARV close to what you say it is. As opposed to an appraiser who will just bracket your contract price to avoid scrutiny from the bank.

You can also team up with some turnkey rehabbers and sell their stuff if you are low on inventory.  

No at least not anywhere I've lived.  You are not selling houses, you are selling the contract to buy the house.  Even if you were actually selling the house, you would have an ownership interest and you can still sell without a license.  You should at least start to compile a buyers list.  Figure out where you are going to close.  Find an affordable contractor, a repair guy, a property manager, and mechanical contractors.   Maybe network with other wholesalers how might be able to sell your stuff for you.  

I do both.  I can say that wholesaling would be more time consuming, if you are only going to be doing one rehab at a time.  The reason is because when wholesaling you constantly have to be looking for property and making offers and then trying to find buyers.  It never ends.  You might have to look at 100 properties before you get one under contract.  That is not an exaggeration.  I've looked at close to 200 before, before I found one.  

When you are rehabbing, you will hire a GC who will look after the crew and keep them in line.  You don't want to breath down their necks and only have to check on them periodically.  Once or twice a week is enough.      

This seems like a better question for your lender.  

I've seen that many times.  You should credit the rent back because it was not paid before closing.  You are only credited the rent the seller has received for that month before closing.  If he credits you the rent due on the 15th and then you collect the rent on the 15th, you will have received that rent twice.   Which would be nice, but it's not how things work.  

The only way for you to keep your credit is to allow the seller to keep the rent due on the 15th this month and then you start collecting all the rent the following month. 

More often than not, in my market I have to pay over list price to even get a property.  A house might be listed for $40k and my analysis puts my offer right at $40k, but knowing that 30 other offers are going to come in and the fact that I've already made at least 100 offers on other properties I offer $42k hoping that I have a slim chance of getting it.  

Then some knucklehead comes along and offers over $50k for it and I'm back hitting the pavement.  

The point is, that I offer more than list price all the time.  If my analysis supports it.   

Looks really good.  I like how you did the stairs and closet.  I'm going to have to remember that sometime if I don't have room for both.  

I had a similar situation a few years ago.  We had a hard money lender make up the difference.  They actually put a lien on a different property so the bank wouldn't know that there was another lien involved in the transaction.  

I think ours was for around 10k.  I don't remember how it got paid off, but it did.  

Maybe you can get a different appraisal too.  Find a lender that doesn't use bottom feeder appraisers.  

Just be honest and say you ran it through the system and the system said declined.  

I had a tenant, maybe two, that have done it.  I let them do it because we agreed that they would have to maintain the property so that it met the standards of the state, beyond any normal repairs that I should be doing...like electric work, roof work, or something.  Plus, at least that way I knew that they were making an income and would be able to pay the rent.  They were pretty good tenants actually.