All Forum Posts by: Kyle Coleman

I've heard propstream.com is fairly accurate, but I'm not for certain. 

I struggle in the lead generation department. 

 That was my exact thought, figured I would post it to the group to see if there was an upside I was missing. 

Hey all,

I'm in talks with a wholesaler who has a seller willing to do a subject to deal. The wholesaler is asking for 20k, which covers 'assignment' fee, AC repair.  It also appears the title has a lien on it, so I imagine that would need to be taken care of as well - but the wholesaler hasn't disclosed it to me yet. 

#s

4bed/2bath 1575 sq ft, 3 car driveway.

Current mortgage - 103,5
Current tenant has been there 8+ years, with rent being 1250. 
Average sale price in the area is 130-140k.

Wholesaler negotiated with the owner that the existing tenant can't be evicted unless for obvious reasons (payment, damage, etc).  This bothers me because I tend to lean towards lease-option sales for sub2 homes, I imagine I would just have to wait out the lease, which I asked to see a copy of. 

TLDR: 20k for a property cash flowing $262, which the possibility of 20-40k equity. 

Would you? 

Fantastic Job!!

Question..

I'm struggling to get leads in my area; we dont have a team that generates so we have to rely on wholesalers. Is there a faster way to get leads coming in? We dont have a big team to handle too many flips at once. 

Are there a lot of lenders that will do a loan for that amount? 

Thanks - I'm going to do that, this was just the first one I tried.  Is it reasonable to try for conventional loans to do a flip? I think that Fannie and Freddie require that the home be "livable" to qualify, which would take a lot of properties out of the equation. 

Do these numbers depend on flipping experience?

Hello,

My business partner and myself are aiming our sights at our first fix and flip property; we have money set aside for the project - but due to the amount we are willing to invest it limits some of our capabilities (can't buy in cash). Out of curiosity, I spoke to a hard money lender yesterday to see what they could provide us. I thought that if we used a HML, it would allow us a wider range of projects to pick from.

Their requirements are experience based; of which we don't have any in the flip market (we are buy and hold). 

-Must purchase at 60% ARV or lower (is this possible in todays market?)
-3.5% origination fee
-11-12% interest
-12 month term (shouldnt be an issue)
-They cover 75% of purchase and 100% of repairs

These numbers change pretty drastically once we have 1 deal under our belt, and then even more after 3+ deals. The problem is, that those numbers seem expensive, and buying at 60% ARV or lower, seems like it might be like trying to find a diamond in the rough.

So the big question, is it worth it? Would those numbers make sense for a first timer - just looking for opinions. 

Thanks!

Kyle

 Thanks Nick, as I was typing it up - I realized that there are so many other ways to finance a deal that it didn't really make sense. No reason not to partner up. 

Hello All,

I'm already an investor, but still fairly new.  I have a few buy and holds that cash flow nicely, but I'm looking to branch out and grow faster rather than sit and wait for 20-25% down payment every time.

My question is this, if you were due for a raise at your day job, would it be wise (i know in almost all other cases the answer would be no) to ask for a larger one time bonus, instead of the raise.  The thought behind this was that if I can accumulate enough 'seed' money, I could start doing fix and flips; which in theory could turn that raise I passed on, into much more. 

In a business where cash is king, it seems like it could play out in my favor. I do have a feeling that most people are going to say, if you dont have enough cash - partner up and take the raise instead.  Then use the cash from partner deals as seed money. Hm, I may have just talked myself out of it - but I'd still like opinions.

Thanks,

Kyle