All Forum Posts by: KB Collins

I felt I needed to add this post as an article since I believe the underlying theme is very important. I want you to read this post from the perspective of a flipper and then as a street capital provider while keeping in mind, what has been, the symbiotic relationship that both these rolls have had over the years.

"Fix and Flip on Life Support? I have been hearing a lot of talk that Fix and Flip is dead with some companies focusing on other "Hot" areas of lending. Well I think that is happening but the fact that Fix and Flip is dead is not completely true.

Under current Capital Market requirements the big boys on Wall Street currently have, I believe the rehab market is on life support (of course in my opinion). I believe a few things need to change or as we hear in many of these capital market meetings - shift - within Lenders Guidelines. Guidelines need to change to make sure the Flippers are not being replaced completely by the next big rage "New Construction".

I believe in the next few weeks or months companies that only did Fix and Flip / Bridge Loans with a couple of rental loan thrown in for good measure will SHIFT to funding Ground Up New Construction. The Shift that is really happening is Wall Street is shifting interest to New Construction and companies you know well will roll out NEW CONSTRUCTION LOANS! (I can write about another 20 post just on that! I wont, maybe?...)

For me it is a natural progression for a fix and flip team to move into new construction, but I believe that with a small "shift" (there goes that word again) capital providers will see many more years of successful loans and flippers with actualize real profit.

I hope that Capital Markets do make that shift within their guidelines and not totally shift to New Construction Lending. I believe that we have to make sure future flippers have the opportunity to do what they do so well, and bring new life into areas where property rehab is so desperately needed."

I think a lot of these conferences have shown that we need to make sure we do not leave the investor out in the cold, while trying to please the capital markets at every market shift. Couple that with the new proposed limitation on IRA investments coming down the line, we need to make sure we capitalize our markets responsibly.

Horrible, I cannot imagine how people do this to each other...  

I remember a client of mine a while back told me his offer was not accepted because he wanted to replace the veggie garden in the back yard with a pool.  Well long story short,  the seller got wind of his master plot to rid the property of the healthy vegetables and refused to speak to the buyers agent.  The seller put an end to that deal and sold the property to another person who eventually tore the entire house down and replaced it with a multi unit apartment complex.  Go figure!

Wondering with so many lenders who actually stop lending during the crises of the past couple of months, has any one applied for funding to later find out that the broker or lender did not keep their intended promises or terms?  This does not mean that you did not qualify for a loan and then just did not like your Broker!  Be Honest and Fair! :)

Wondering with so many lenders who actually stop lending during the crises of the past couple of months, has any one applied for funding to later find out that the broker or lender did not keep their intended promises or terms?

Wait a min, wait a second - he owns how many doors?  I think that should only matter when someone is claiming some sort of expertise on how to help you get your own doors.  (That is all it should be for.)  If someone is claiming doors to brag, then let them what does it matter.  However if they are using it to claim Guru status and they are lying, well then there may be an issue.  Also to a commenter above since a mutual fund is part of a fund, then I do own that stock. LOL I guess being in a Boat Club does not allow me to say I go on my boat this weekend?  Well I am still boating, but if you are implying you own a boat, than that is lying.  But what does it all matter.  Run your own race, keep your blinders on and finish the race. So the short of it is, if you are relying on a person to show you how to acquire doors maybe the doors he truly owns matters.  But keep in mind Mike Tysons trainer was not lacing up his gloves to beat Mikes opponents either, he was showing him how to win his own fight.  So maybe it does not matter if that Guru has 10289272728 doors, if you can learn something.  

Opinions expressed here are really only mine...  Thank Goodness!

@Cassandra Sifford  A Chatty Lawyer... We must be related LOL... I am so glad you read between the lines and got an advisor and and advocate.  Please make sure you keep us informed.

KB :)

Part of me is totally excited for you and the other half scared beyond belief.  As multi-year if not decade Attorney, I can see all the right and wrong things that can happen here.  

My advice here is to not rush, get everything in writing and do not make rash decisions, buy most of all get well counseled.   

I am sure there will me tons of advice coming your way on BP, just make sure to validate everything and make the right decision for you.  There are tons of advisors out there, just spend some time finding the right ones.  Best of luck!  Please keep us updated.

All views expressed by me are usually mine... :)

I think now is a perfect opportunity to have that problem.  There is a lot of misinformation out there about 1031s and you should work with a professional who does it more than just once a year or for friends and family.  My advice, buy well, buy often and buy with great advisors who know there 1031 exchange rules and regs.  (Oh and buy with the mindset of knowing that one day maybe one day sooner than expected you will be selling it - so when you do your next 1031 exchange you will find buyers for that same asset, and not have to struggle disposing of an asset.)

Views expressed here, as always, are all mine!

Can I trust the Realtor...  Well the answer to that is Yes! You can always trust everyone and anyone.  However, should you trust the Realtor or for that matter the Lawyer, the Doctor or the Cop on the Beat?  That all depends on what you are requiring from them and what info they are relaying to you.  If you ask the realtor what the date of the closing is, then maybe you can trust his answer.  If you ask the realtor what you should do for title insurance, maybe your reliance on that response may be riskier.  

So since you are so far away to be able to validate the information, you are being given, you must ask yourself - who owes you a duty?  Does that Real Estate professional owe you a duty, either fiduciary or not...  Ask and answer that question and then you have to ask, can I rely on that answer?  If not, you need a validator (Maybe Your Own Realtor) for that info.  

So in short, can you rely on someones answer, the answer is yes, should you?  That is a deeper question.  I say this because even our most trusted advisors are sometimes wrong or are misinformed or even worse - misguided or has an ulterior motivation.

Best of luck and my advice is Trust but Verify!

KB