All Forum Posts by: Kevin L.

Another newbie question...

What is the minimum ARV for a SFH that makes it worth while? I have been looking at very low end housing...the 70% rule applies...yet after realtors fees/holding costs/closing cost it just doesnt make sense! It seems like I will be one "discovery" away from losing my tail. This could all be an issue due to me "padding" every number possible because this is my first deal. Thanks in advance to all that reply!

Super noob...just wondering if there was a quicker way to inspect a property. It seems to take me hours to look at a property, because I have to count everything that needs replacement. I hate taking realtors time...and mine. Can anyone give me some pointers? I am just worried, as this is my first deal...and dont want to overlook something major, and lose money. Any advice will be greatly appreciated!

Thanks for the reply!!! BP sure has answered a lot of questions for me!!!!!!!!!!!
ok, so as far as the "broker lady"...she was a friend of a friend type deal and we felt obligated to talk to her. After all, this is going to be our first deal, and can use help out the wazoo...as you can tell! Thanks to other BP members, I have found a couple hard money lenders in my area. I guess this will atleast cut out the middle man broker lady. Once again, thanks for clarifying this for us!

Ok, I dont quite understand this...and dont know if it is true, but I will explain to the best of my knowledge.
Today my business partner met with a hard money broker, or so I will call her. She has informed him/us that what we are wanting to do (buy, fix, sell) is no longer as it used to be. She says that now there is law stating you can not buy a home, and turn around and make huge profits off of it...as this is taking advantage of the homeowner. The example she presented my partner with was this....assume you purchased a property for $50k, and did $30k in repairs...the house can only be sold for $80k. This to me sounds soooo wrong on so many levels, yet who am I?
Now I was not at the meeting, so I am sure there is other information left out. I just wanted to know if there was a holding period (maybe this is what she was talking about) in which you have to keep the house...for 2 or 3 months...i dont know. Sorry, for asking this, but this has scared us back two or three steps....just when we were finally preparing to do something!!! grrrr...thanks in advance!

Jaremy,
First off I am very interested in doing rehabs. I have looked at your properties many times already, and do think there is value there. My problem right now is finding the funding. Once I have the funds, then I can become more serious with my searching. I am currently trying to locate hard money as every other angle I have tried has fallen thru. Thanks for everything and I would love to work with you...just give me a little time to find the moola!

Thanks to all of you! I added you as a colleague Stephen...i think....i am still trying to learn this site.

I apologize for not being specific....our intentions are to flip distressed properties in the $30k-$55k range...hopefully for resale in the $80k-$110 range. We have gone to the bank with these ideas, and they have told us that no bank will finance these properties until they have been rehabbed. The banker did say that there would be no problem getting them out from under hard money with a conventional 30 yr. mortgage after they are repaired. Thanks to all of you!

Let me just reiterate...I am a newbie! A co-worker and I are wanting to take the plunge together, and dive head first into REI. We have gone to the bank, a bank in which I have superb past business credit history...and they have told me that no bank will loan money for what we are wanting to do. If no bank will loan to us...I believe the only other option is hard money. All that we have read makes this process sound so easy....is getting a hard money loan really that easy? Especially with this being our first deal? Just FYI...we are in the Houston area. Any info is greatly appreciated!

Hello,
I am a straight up newbie...and I was just wondering if anyone was familiar with the different REI clubs around town. I have seen a list of about 8 different clubs, yet dont know which ones would be worth my time...thanks in advance for any advice!

Chris,
Currently I am working in Pasadena...living in Pearland. I would like to keep something in the whereabouts of my daily commute. After I have my first rehab under my belt, I believe it will become easier to travel a bit further. As for deals being everywhere....that might be true, yet I have not been able to master the art of finding them. Hopefully one day I will....in the mean time, I will learn as I go.