All Forum Posts by: John Clark

I've found a property that is owned by a couple of flippers. From what I can find in the records, they bought the house almost a year ago for $44k and it has been sitting vacant for longer than that. ARV from what I've calculated is is around $105k. This property has a lot of rental potential and I'd like to BRRRR the house. Since the house is sitting empty, not making them any money I'm looking to approach the deal with them owner financing the house and I pay for the rehab. However, with them being flippers I'd also like to include them in the deal as a teaching partner during the flip. I still want to do the sweat equity so I can learn.

So I guess my question is, how is the best way to approach the owners to not only sell me the house, but to partner with me?  and what would be a high level way of structuring the deal?

I started browsing List Source and there are way more options of lists to pull than I thought.  does anyone know if there is a comprehensive list with definitions of what everything means?

Quick follow up.  thank you all for the input.  I took him a folder with all my information, resume, and business plan and the meeting could not have gone better.  he felt very confident that I will get funding and we scheduled follow up meetings to discuss next steps.

Perfect! thank you William and everyone else for the advice.  I'll pull together a nice business portfolio and brush up my resume.

Monday I'm meeting with a banker who is investment friendly and an investor himself.  I want to make sure I get as much out of this meeting as I can.  Here is my plan for investing to help guide some questions.

• Planning on investing in long term rentals with BRRR method with my parents as a business partner
• We want to have two properties within our first year
• Looking for both myself and my parents to get HELOC loans and then refinance to a 30 year fixed. They own their house outright and I've paid a large chunk off my loan and have increased the value through remodeling
• Although I have a wholesaler contact I'm also considering direct mail as well to find properties.
• I work a full time corporate job as well as my Dad.  My Mom runs their small business.

That's the important stuff I can think of that is relevant to get a loan, but if I left off anything just ask.

Thanks!

so I've thought about that but it seems my cash flow would be almost nothing if not negative.  I guess as long as I cash flowed something and then sold it, I would still be on top though.

Is this group still active? I'm still new to REI but would like to get to know some other like minded people.

I'm starting to plan my first REI and I'm stuck in a bit of a dilemma. I know I want my first investment property to be a multifamily, and I know I want to live in one of the units for the first year since I'll be using an FHA loan. However it's trying to decide what to do with my current house is where I'm getting hung up. I don't know if the best strategy is to rent or sell. And if I rent, should I consider refinancing first? Below are my statistics on the house. Any advice is more than welcome!

Currently owe on loan: $109,000

Purchase price: $118,000

ARV (based on comps and upgrades to the house): $135,000

Mortgage: $830 (if refinanced $600)

Average rent in the area: $1100

Other fees: HOA $24, Water $45

Sounds awesome!  Can you expand more on the first property you purchased?  Neighborhood, what kind of reno you did, ect?  I'm considering selling my house next year and doing the same thing either in Fayetteville or Rogers.

Makes perfect sense, I like keeping things simple.  Thank you both for the quick responses!