All Forum Posts by: Keith C.

Hey 

If your worried about dooms day , which everyone is entitled to  -- and one they  / you are actually right  --  what do they say " even a broke clock has the right time twice a day" .

Start taking your money off the table and leverage all your assets with Non Recourse loans.. As long as you remain cash flow positive you will be making the Benjamin's until the day of reckoning  comes ( And It Will )  than it becomes the banks problem .. You just tell them " Asta La Vista Bankky".

  In 2004 -- 2008 small investors didn't have the positive cash flows &  non recourse loans  People were  just buying , borrowing and trying to flip it to the next sucker who came along.. Today at-least people know they need to buy assets that are cash flow positive , One the bottom opens up - don't be the Guy / Gal  holding the bag .. That's the banks job :)

Location always matter. Exit strategy is as important as Cash Flow.

PM if you like I have a  good location in Tamps where  rents are midrange  and comps are great . The neighborhood already started gentrification  offering solid cash flow projections.The deal offers both solid income and a strategy for a profit at exit. 

Congrats Jodi,

Sounds like you got a deal and times it right 

Hillary ,

I've been listening ok'ing at flood deals for a while now , from the deals that came my way the wholesalers are looking for 60-50% of the ARV , that doesn't leave you much room for error , market correction or stigma of a flood home even in a good area .

Take off 10% for commissions, legal  & closing on sale , you are looking at best a 12/20% return on investment .

Now imagine if the mold situation comes or contractor goes over budget , you may be stuck holding a wet bag 

If your plan is a rental than at least you have a plan B in place 

For the best upside of 20% I’d stay clear 

Of course if you can purchase at 35/45 From ARV that may be worth considering

IMO the Flooded homes are going to be in the market for a while - based on the fact many owners are just hanging on and not paying mortgages . At some point the reckoning of all those outstanding mortgaes and taxes are due - where there will likely be many foreclosures / short sale or other distressed situations on the market 

Sam , 

Would you be able to share that spreadsheet with me as well ?

Id be happy to share my Multi Single Family Sheets thanks

Amy 

Great Podcast , Sometimes  Road Less Traveled is the best route to take. I love your recommendation  of the John Reed book but seems his books are out of print and hard to get. None in my local Library either Seems like Brandon already swiped them already :)

. Banks would require financials on you - not the seller. So the owners death should be irrelevant to them. You can get a hard money lender if the banks turn you down- but that is a short term fix and expensive.

I have been looking @ a number of flooded home deals for the past few months . The truth is  'Flood Deals ' are few and far between. Unless you deal directly with the sellers , most of the wholesaling deals are looking at 18%-30% returns after all expenses are calculated ( before any hard money considerations) . 

Considering there is much larger risk with flooded issues which can can pop up,  and considerable  uncertainty of what real ARVs will be at when the dust settles. IMO Those returns are not worth the risk. You would need to clear 50 % ++  to take the chance with a flooded property .

Hi everyone

First time using the BP calc , so perhaps I am just not understanding BP method or I am miscalculating , however ....

I input a home's data sets with all associated costs and the complete loan amounts, points, fees etc.

When the results came back , The ROI was based on the total project costs.

. i.e. Profit $30,000 on $150,000 Total project

The report shows " Total Personal Cash Invested "

However since I am borrowing the money , my cash invested is only approx 25% of Total Cash In , plus of course holding costs , etc..

The ROI should be based on my actual cash outlay i.e.: $40,000 or whatever I actually laid out ,, not what the entire project cost.

You can try one of your own deals or Id be happy to share mine.

Please let me know if I am just missing something.

Thanks everyone

Hi  everyone 

First time using the BP calc , so perhaps I am just not understanding BP method or I am miscalucating however ,, 

I input a home's data points with all associated costs and the complete  loan amounts, points, fees etc.

When the results came back , The ROI was based on the total project costs.

. i.e.  Profit $30,000 on $150,000 Total project 

The report shows " Total Personal Cash Invested " 

However since I am borrowing the money , my cash invested is only  approx 25% of Total Cash In , plus of course  holding costs , etc.. 

The ROI should be based on my actual cash outlay i.e.: $40,000 or whatever I actually laid out ,, not what the entire project cost.

You can try one of your own deals ,, 

Please let me know if I am just missing something.

Thanks everyone

Have a good weekend 

Does anyone know of a good Rental Broker in the greater Houston area ?

If you wish - I will gladly use your name as a referral .

Thank you