All Forum Posts by: Account Closed

Adrian,

No matter where you get your funds (even gifting) there usually are terms involved. So you then have to build them into your numbers. As far as partnerships "TRUST" is the biggest thing. Even banks build in a (we are not sure how much we trust you fee). That is why they do there due diligence before lending money and charge you interest. .

Please all (speaking about NJ only)... Title insurance and the ancillary fees that go along with it (searching, recording, copies and etc) are usually twice what they should be. In my opinion only. Esq's often double and triple these fees to take there cut and bill you for it . Shop title fees! Ohhh!!! Origination fees !!! R U Kidding me. They are making enough on my money. Plz if you are getting into REI develop a relationship with your Lender, Title company and Insurance broker it pays off in the long run. Home inspectors same thing. If they do Termite Radon and etc remember they make more on everything they do so negotiate. I do my own inspections. If there is something funky I reach into my bag of professionals and call them. Surveyors same thing If I meet them there and I drive metal stakes into ground I save more money (that is if my lender won't let me use the current owners survey). Last but not least Develop a strong relationship with a good R/E attorney they can save you millions so you have to do due diligence when hiring them as they are not all the same.

@Andy Collins

.Right On. There are speculators and there are Investors in every market.

Jeff

@Barshay Graves

I will only speak about NJ. There are many variables in closing costs. That is one of the reasons lenders provide good faith estimates. I am very close to many professional people that are involved in closing costs (again only in NJ) and the fees can be all over the board. I truly believe getting the copies of the good faith estimates and go line by line and challenge the fees and you will find it amazing how an educated investor can suppress the costs. Last deal Estimate $5300. Final $1900 and that was paid by seller not I.

Jeff

@Patrick Jacques Great Topic

High end kitchen on flip I was involved in 2004. A "walk in" refrigerator/freezer/wine cooler for house that sold for 1.3 million. $26,000 the unit/box cost. Not including install. Looking for pics. Funny house has been vacant for 2 years and 3 months and the foreclosure process is midway. That said I got inside and the house is destroyed and I suspect will go for about $450,000. ARV about $600,000 today. IMHO renovations over $150,000 to get it into shape. Sad. The r/f/wc I put in was badly damaged and compressors were cut and taken.

Jeff

Laura,

I agree with @Mike D. . Numbers do not seem to work for me as a rental. Might be a short tem hold then sell but then again in my book you are speculating not investing. Sorry I am not onboard with this deal.

Jeff

@Joel Owens

I like your analogy. That is why I flip and have holds. I sell properties that are least profitable to the untrained and the uneducated for "their" price then re-invest where I get better returns. Funny the world is an ever changing place and in my honest opinion so are areas in real estate that offer the greatest returns

@Adrian DeGraff

I like your Numbers and agree with @Kevin Fletcher that the initial emergency contingency fund should be at around $5000 until reserves build up from rental income then I would release funds for another deal. GREAT JOB!

@Shanker Nair

Welcome fellow Monmouth county-er. Best of luck with all you endeavors.

Jeff

P@Jason Cooper From talking to my Homepath lender Fannie Mae is offering different incentives in different areas (based upon backlog and interest). Just like the SBA loan programs Home Path loans are backed in part by Fannie Mae (you and me). Each lender that uses the Home Path product can also have their own rules (Ex. you must borrow over a certain amount ). Usually the Home Path website for your state link has a list of approved lenders. I would suggest you call them all !!!. I found a great difference in rates I was charged, fees and standards. Good product and would use it again as I am one that has all my ducks lined in a row. Jeff