All Forum Posts by: Keith Gilbert

@Clayton Coombs Hi! I’ll be curious to see what you get for potential options here. In general, short-term active income is going to be taxed at regular rates. As such, the primary option is to either save (which it looks like you’re doing) or offset with expenses. Since you’re flipping, no depreciation benefits.

@Mario Morales Hi! My first suggestion would be to start looking for a local lender you can build a relationship with as that will help in the long run. On the current question, keep in mind that banks would be looking at a 70-80LTV on a refinance for that property. Add the fact you’re going to pay for the hard money and then still have the refinance fees, you’re likely better off talking to a bank about loan options. Seems like a low down payment house hack might be a better fit in this case.

@Sarah M. Hi! I would recommend starting to call some independent agents in your area. They should be able to answer which provider would be best and suit your needs relatively quickly.

Totally understand. And it's not a great option for a buy & hold.

If you go fix & flip, hard money is probably cheaper than a credit card for any given time period unless you get a new card with an introductory 0 rate.

Is it a foreclosure sale, or being auctioned? Just asking because an auction could have additional cash requirements.

For financing, will there be significant equity after doing the needed repairs? If so, look at a commercial loan and see if they'll do an ARV appraisal and loan based on that.

Alternatively - hard money is an option if the numbers are solid and you set a defined plan as a fix & flip.

@Jessica Muto Absolutely!

On listed properties, I probably have at least a 10:1 ratio of acceptance. It took me at least 10 to get my first, which I close on this week.

For the unlisted properties I'm looking at, I would be paying my agent's fee - largely for an ease of transaction given I work other jobs and can't attend this full time. I didn't add to seller's side because they are extremely price conscious in this, which is also why they didn't list. It's also a way to help compensate my agent for all the listed offers and work he's done that didn't end up being fruitful.

Writing an offer is relatively low work for an agent, and if you have an investor-friendly agent, they should be aware of the ratios. One thing that can be helpful, discuss your metrics and requirements with your agent. Let them bring properties that meet those to you, but be prepared to offer on a good proportion of them.

@Jessica Muto - I am currently in the process of trying to acquire a collection of off-market properties. I'm exploring two route for the offer/agreements.

1.) Pay my agent his 1.5% and let him handle it.

2.) Pay an attorney to do it.

Given it's several buildings and the pricing isn't crazy, I'm guessing the price difference in my case would be negligible either way, so I'm leaning towards #1 and proceeding as it it were a normal transaction for me.

@Mary Mitchell 1% a _year_??? I’d be looking at other markets if I were you :-)

What's your potential rent? How much would that cash flow you? What's the value of the property?

A large part of this will be dictated based on your market, time the property has been listed, reason for selling, etc.

What's the average % sold/list for your market for the types of buildings you're looking at? What's the average price per unit and price per bedroom.

If the property is listed high on both those, new to the market, and something within margin of the average % sold/list I'd move on assuming you have other stock available in the market.