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All Forum Posts by: Jody Michelson

Jody Michelson has started 2 posts and replied 18 times.

Welcome to BP, Denisha! While this is tangential to the thread, you may have already discovered the wealth of resources here on Bigger Pockets.

You should check out Brandon Turner's excellent 'overview' guides to several topics, and absolutely consider getting J. Scott's companion 'The Book on Flipping Houses' and 'The Book on Estimating Rehab Costs.' Whatever area of RE investing you're thinking about starting with, there's a gold mine (more like a platinum mine) of information in those books that could prove invaluable.

Thanks for the helpful reply, @John Rooster . Have you found that after three months (from acquisition to rehabbing to listing the property) lenders tend to loosen this restriction?

Also, what's the rationale they use to place the restriction in the first place?

Thanks again.

Have you ever had a lender tell a prospective buyer of one of your flips that within the first six months of you purchasing, rehabbing and listing the property, they (the lender) wouldn't loan on a property that was selling at a price considerably more than what the seller (you) paid for the property in the first place? And that for the time frame of between six months to one year from your original purchase, rehab and listing of the property that the lender would consider a loan on the 'substantially increased purchase-vs-sale price' property only if you could justify the asking price via receipts for upgrades that were done?

I ask for the following reason: I've been principally a buy-and-hold investor who's had their sights on eventually doing a handful of flips each year once I felt I had acquired enough of a knowledge base to go about it in a confident manner (confident for first flips, that is :)).

I was speaking with the RE agent who helped me purchase a few properties recently to go over what I hoped to be a timeline for rehab and listing the properties for sale. Within a day, the agent said they spoke with lenders who offered the caveats mentioned in the opening paragraph of this post (about the 'no lending for the first six months, and only with proof of enough value-added for six months to a year) for properties that were purchased for far less than they'd be sold at.

If this is even slightly accurate (and I have some questions as to the veracity of the claim), then with the exception of cash end buyers, how could rehabbers do business? I would have thought that lenders would only be concerned with the credit-worthiness of the borrower and the market value of the underlying collateral, and not how much the original purchaser (flipper) paid for the property?

I'd love to get BP Nation's feedback on this, as I consider the experience and expertise to absolutely dwarf that I'd get from a typical agent or loan officer.

Many in-advance thanks!

Post: Analysis help, please.

Jody MichelsonPosted
  • San Clemente, CA
  • Posts 18
  • Votes 5

You could also consider checking websites such as Rentometer and Padmapper for rental comps. Also - assuming you purchase the house - if you're planning on hiring a property management company, you could call around to some of them to find out what they think the home would rent for.

Good luck!

Post: It's Josh's Birthday!!

Jody MichelsonPosted
  • San Clemente, CA
  • Posts 18
  • Votes 5

Hope you've had a wonderful birthday, Josh!

Post: Hello and Podcast Ideas

Jody MichelsonPosted
  • San Clemente, CA
  • Posts 18
  • Votes 5

@Karen Margrave

Karen, thanks for the welcome! I've read several dozen of your posts over time, and appreciate your developer's perspective on BP. If you ever feel comfortable having a newer investor (me :)) look at your upcoming projects in San Clemente as they progress in their various stages of development, please let me know.

Good luck with them!

Post: Hello and Podcast Ideas

Jody MichelsonPosted
  • San Clemente, CA
  • Posts 18
  • Votes 5

@Joe Fairless Thanks for your welcome post! At present, I'm purchasing out of state properties as buy and hold investments, and am about to start a few rehabs with a partner. With enough experience, I'd like to work with spec builds, although I'm certain I have a considerable amount of learning to do prior to that.

Appreciate your offer to chat by phone. I'll PM you.

Post: Hello and Podcast Ideas

Jody MichelsonPosted
  • San Clemente, CA
  • Posts 18
  • Votes 5

Happy New Year to all!


After devoting at least a few hours each day over the past few years learning all I can on BP, I thought it was high time to send a first post.


With the first year of BP podcasts being as successful as they have, I wondered what BP Nation could offer as an encore?


So, I started thinking about potential Year Two podcast topics and guests, and wanted to lead off with a few ideas with the hope that many additional (and even better) possibilities would emerge from the community. Of course, it goes without saying that Josh, Brandon and the BP crew are way ahead of me and have already compiled a mile-high list of future guests and shows.


For what it's worth:

- A show with the Wizard of all things Finance, Bill Gulley

- Taxes and more with Steven Hamilton II

- Title Issues, Probate and additional topics with K. Marie Poe

Topic-centric shows (perhaps in roundtable format with multiple guests):

- Where the market is headed over the coming 3+ years

- Anatomy of a Spec Build

- Evaluating a new investment market


And, a belated thank you to so many posters on BP that have inspired and edified me over the past two years!


JM

As an aside, while I'm posting this in the New Member Introduction forum, perhaps with the the podcast ideas component of this message the moderators could post this in the correct forum?