All Forum Posts by: Khizar Hanif

Hey guys, 

I am looking to do my first flip here very soon. I have come across some deals lately with decent numbers in great locations but where I am struggling is deciding whether to use hard money or my own cash. Obviously, a HML will cut tremendously into my profit potential. Assuming ARV and repair estimates are accurate, with high interest (13.99%) and 4 points, net profits don't look enticing with a calculation of a 6 month hold. If the property takes longer than 6 months to sell, I basically lose all profit potential since ill be paying extra interest. I am not considering any areas that have comps with a high number of days on market but I have to expect the worst.

The biggest advantage I see with hard money is that I can eventually do multiple deals at once. So, I am thinking it would be smart to use hard money later in the game as I gain some experience and confidence to where I could do multiple deals simultaneously (with obviously less profit potential on each deal) but not have to tie up cash. 

For my first deal, I am leaning more toward the cash option which would yield me almost 3x as much profit as opposed to using a HML, assuming the numbers are accurate. Is this a good idea? Am I being too greedy and thinking about profits too much as opposed to getting my first flip experience?

The way I see it is that this first deal will be the only flip I focus on, so I'm not concerned about cash reserves. Once it is sold and I see that I can excel in this business, I would use hard money or private money to do more deals and hopefully, more than one at a time. 

Any advice would be appreciated, thanks.

@Jonathan Bonck Would you mind sharing your CPA contact with me as well? Thanks. 

What do you guys think about Harvey-damaged properties as fixer upper flips or for BRRRR strategy? I know that lots of investors are jumping on those so not sure whats left and what is out there but if you find the right deal you can snag up a home for way below market value. Might be too late to the game, though.

Great information on this thread for Houston investors, btw. Thank you, everyone! 

Fourth quarter*

Good evening, everyone. Hope you all are doing well and achieving success. Hope those in the paths of the recent storms stayed high and dry. It's almost the third quarter of the year and I am ready to make (very quick and careful steps) toward my goal of purchasing my first rental property of 2017. If anyone in the Houston area is interested in getting together and joining forces to search for investment properties, please reach out to me. I believe firmly in achieving success by joint forces and would be very interested in working with some likeminded and talented individuals here in the Houston area. Key word there is "likeminded". Let's get together and reach our goals. Let's do this. Let's build wealth. Together.

It would be great if you would share the numbers pertaining to this project!

Thank you for the welcome @Dave Visaya and @Ryan Carter!

Thank you for the welcome @Veni F.. I will navigate through the links.

Hey everyone, Khizar Hanif here. I am new to BiggerPockets...actually not so new. I have been lurking around for a while just taking in knowledge but this is my first post. I'd like to introduce myself to the community with hopes to gain more exposure into the world of real estate. 

I am a University of Houston graduate. I graduated with a degree in Biochemistry and Health with plans to pursue medicine, which quickly changed because I was always interested in business and investing. Instead of pursuing a healthcare profession and spending years going through a rigorous curriculum, with the help of my father, I decided to dive into the business side of Healthcare, which is very lucrative. I own an Aesthetic Medicine practice in Northwest Houston called MD Advanced Skincare and a few other healthcare related businesses.

With my family background in Healthcare, I was able to secure investments in some properties and medical facilities. I have a few medical office buildings (MOBs). I am also currently vested into nursing homes, assisted living, freestanding ERs, and MRI centers, along with the real estate. I will soon be adding my first hotel (as a partnership) to my portfolio. My decision to switch paths over to business from my dreams of being a healthcare practitioner was only because I promised myself that instead of spending years and years in medical school, I would be persistent in establishing myself as an entrepreneur/investor and have it pay off Xfold in the long term. Plus, its SO much more fun. I am on track and have achieved the goals I had set for myself years ago, and am now interested and ready to dive into residential real estate investing (holding and flipping).

I am excited to join the family here at BP and hope to learn from you all, become a pro, and eventually give back to the community when I feel I am fit to do so. After all, life is all about giving back. 

I want to learn more about REI and eventually purchase my first residential property (goal for 2017), repeat and repeat again. My long term goal is to hold a number of properties and build equity. I am also interested in rehabs.

There are so many resources out there to learn about REI, which is great but building a network and connecting with individuals is even more important. Any advice in terms of starting out for a newbie would be very much appreciated.

Nice to meet you all.

-Khizar Hanif