All Forum Posts by: Scott Robinson

Hi all!  I work out of Tx, wholesaling and buying in TX and AZ and am looking to expand to MA.  I spend over a month on the Cape in the summer and an additional two weeks during the year.  I am looking for some suggestions on closing attorneys that are familiar with wholesaling. Does anyone have any recommendations?

Thanks,

Scott

I'm considering getting into this space as well.  I'm looking at a rough place right now that will need some work.  Before I use up a contractors time getting estimates, can anyone tell me what the average $/sqft on a rehab is?  My experience is all from Texas, but I spend a lot of time on the cape and this would be a new investing market.

Thanks!

I have left a message for my attorney, but in the meantime thought I would ask the group:

Has anyone ever had the Heirship rights of an estate assigned to them in Texas?

@Andrew Postell Ok thanks. Just emailed you. 

@Andrew Postell, so file the lien at closing of the refi, not the HML right?

@Andrew Postell thanks. The 25% would be included in the agreed to sales price but I'm wondering if it would need to be "off the books". Would I be able to refinance the HML if there is a 2nd note outstanding with to the seller? Accepted the request.

@Andrew Postell thanks for the insight.  Every lender I talk to will only do 75% on the refinance for an investment property.  Is there someone else I should be talking to?  Also, Im not seeing where the rehab money is your scenario above.  The two notes are $124 plus the rehab $12k and that is $136k, I refinance at $127k (85% love to have that lined up) seems like Im in for the rehab costs myself which is fine, because there is no immediate repairs to be made anyway with the tenants in place until the summer and happy to continue as is.  If you can do 85% or know who does, please let me know.  Thanks.

Thanks, Joe.  The ARVs are different because both properties would be rehabbed more if they were flipped, but since they wont be flips, I should have just left them off.  I am wanting to keep as rentals or wrap and sell with OF and both would work for that scenario and cash flow a minimum of $300/mo after expenses and debt service.  Loan terms on the refi would be conventional 30yr at 5.5%, hard money would be 100% at 3pts on the front end and 1%/month, seller carry still needs to be ironed out, which is one of the reasons I am here looking for advice, but seller did say he would carry the 25% down payment.

Im thinking hard money for the purchase, get seller to sell for 75% of asking and carry they additional 25%.  That should give me enough room to buy, rehab, & refi out and be left with the 25% note to the seller + the new conventional loan.  If  I need to bring more money than that too the table I can't/don't want to do either one.  Of course, it is entirely possible I am suffering from Shiny Object Syndrome and need to be slapped in the face.

Hi all!  I am trying to figure out the best way to structure financing on two possible buy and hold or wrap into owner finance deals.  These would not be flips and the purchase would not fit the 70% rule.  Both have positives and negatives that make each more, or less appealing than the other.  I would love your insight and feedback on how to best structure financing so I am out of pocket as little as possible.  Thanks for the help!

Deal 1: 4/2/2 SFR Nice quiet neighborhood, easy rental or owner finance area, low DOM

Purchase Price: $115k

As-is: $115k

Rental ARV: $150k

Repairs:$12k....0$ if the current tenants stay which they plan to do and have been there 7 years (I hope to wrap and OF to them)

Flip ARV: $160

Repairs: $20k

Rent: $1200 current, $1450 market

Taxes: $4000

Seller will carry 25% = down payment on conventional loan.

Deal 2: 3/1.5/1 Garden Style Townhome, possible section 8 rental

Purchase Price: $95k

As-is: $95k

Rental ARV: $110k

Repairs:$20k

Flip ARV: $130k

Repairs: $30k

Rent: $1495 top of market

Taxes: $3300

Seller will carry 25% = down payment on conventional loan.

Thank you all for the input.

@Bill S. This is our 1st flip and I would be lying if I said that I had not considered passing on this one, but I keep coming back to it for a few different reasons.  One of which is there is $130k+ of profit on the table, granted split 3 ways but that is still a huge spread.  Even if we go over budget by 25% and sell for 10-15% less than what we anticipate we still gross $65-$70k.  Also, my wife is a Realtor and is supremely confident in our ability to sell the house when it is done, windows or not (but at a lower price).

I appreciate your concern and words of caution though.  Contracts are not signed yet so I will review all this information with my wife and partner.  Thanks.