All Forum Posts by: Account Closed

If you're an investor looking for financing on a rehab and flip I suggest a hard money lender. There are many out there. While more expensive the ease of the getting the loan to do what you want to do could be worth the cost.

In my opinion there is plenty of room to operate in the world of real estate investing. Sure there are big boy companies out there but all you need is one buyer, right? Go out and find a deal and market it. If it's a good one you should find buyers. Buyers are buying to get deals, it doesn't matter who the seller is.

And sometimes perception is great than fact. Just because you perceive something doesn't make it true...

Good luck, you can do this.

Hi James. 

I have to agree with Curt. I too don't see the upside/profit in this deal. 

The other aspect of fix and flip is resell. Are there a lot of owner occupants in this particular area? You want to be in an area where you have the best likelihood of resell (the more owner occupant buyers the better). 

Finally hard money lenders want to make larger loans, true, so can you look in a better location where not only would the loan be larger (to interest more hmls) but also you might have more prospective buyers (owner occupants) therefore the potential for profit is better... ? 

Good luck!

Hey John congrats on your successes to this point. 

One of the issues I see and you didn't mention is a property manager. You can have the best turnkey company but if there is sub par management any investor (unless he/she is managing themselves which would then defeat the turnkey idea) will have a bad experience, which will ultimately come full circle back around to you/your company. I'm not trying to be negative here just telling it like it is. Do you have a good property manager in place? I think the management is key. You already know you can find good deals and have plenty of experience, you're just looking for that ongoing repeat business. I understand that. 

If I was going to build a great turnkey company I would want a solid property manager in place. 

Good luck!

Jason I see the asking price you mentioned but I hope you are offering a much lower amount? 

Personally I don't like 2 bedrooms for rentals. The market fro 2 bedrooms is much smaller than 3+ bedrooms. 

Are you buying one side of the duplex or both sides? If both sides the asking price seems more reasonable.

What does your lease agreement say about pest control? Do you have any provision in it that indicates the tenant is responsible for pest control?

Hi Jacolby. There aren't any dumb questions in this business. 

I think the issue is the owner still has a mortgage on the property. The $5K down from the buyer is great but probably won't pay off the mortgage, nor pay your fee for finding the deal, so this one seems problematic to me. Upon sale the owner is going to need to be taken out of the mortgage unless selling subject to the existing financing is possible. That is another animal altogether.

Personally I would look elsewhere. In my own experience a wholesale works much better when the new buyer can take out any mortgage in place or the seller owns the house free and clear. Other investors in the BP network may have some different advice or experience.

Good luck and congratulations for taking the first step toward your investing goals!

Barbara I would suggest checking your local investor groups for cash buyers. You can also find them by marketing online and word of mouth through other investors.

I do agree with Jason Scott too. If you do have a good deal you should be able to find buyers. 

One piece of additional free advice I would always require a proof of funds (POF) when dealing with a "cash" buyer (when you are putting the property under contract). There are many "cash" buyers who are wholesalers and don't have the money. Don't waste your time unless the buyer proves up. Nothing wrong with wholesaling we have all done it but I am looking out for your interest in this thread.

Good luck!

I have to agree that the action of actually doing something is very courageous. I remember I was so nervous, sweating profusely, when I closed my first investment purchase. Now I close investment purchases all of the time without a second thought.

I will have to agree with others on this thread the most courageous I have been was when I got my *** kicked in real estate investing but had the courage to continue on, fight back. it is not easy. Most investors who have been in this business awhile will have experienced setbacks, failure, lost money, lost time, and other devastating events. This is the make or break time as far as I am concerned. You can quit and go back to your safe job, or you can pick yourself up, wipe off the blood and continue forward. That is courage. It's not easy but it is worth it.

Stephanie oftentimes we all need a good rush of built up frustration to open the floodgates of investing motivation. 

BP is a great resource and I am glad you are voicing your concerns and questions to people who can actually help you. You will find the BP site to be an incredible resource for you. Your one shot wasn't a weekend workshop. You're ongoing shots and support will be the resources and help you will get from all of the investors and contributors through BP.

Don't feel stupid. Every single investor starts at the beginning and with little knowledge. All of us have different motivating factors but the drive is to the same destination.

When I first got started in real estate investing I used a hard money lender for my initial investments. I did this because I didn't have a lot of cash saved up. I know for a fact there are numerous hmls in the Chicago area. I'm not saying a hml is the absolute way to go, but it's an option for an investor without a lot of cash and credit. I know from personal experience.

This is a fight worth fighting. You can be successful. I too started with little but built up over time to accomplish a lot. Sure, there are setbacks just as there are with any venture, but I have found the end result to be worth it. Good luck as you progress forward!

And no, don't give up on your dream if your dream is real estate investing...