All Forum Posts by: Liam Morris

Kelly,

Pittsburgh is a great place to flip properties, but it's no different than anywhere else in the country.  You need to find the right properties at the right price.  There is a lot of opportunity, but there is also intense competition to source the right projects.

For the most part, you'll be extremely lucky if you find something on the MLS, or realtor.com, or any other site you use priced well enough for it to be worth your time and money in the project. There's a reason certain properties are listed so low...

I would recommend that you get onto a wholesaler's email blast list and start watching what comes through there.  You'll still have a bunch of competition, and the best opportunities come from personal connections and canvassing.

Again, lots of opportunity, but be careful of low prices too good to be true.  Usually anything under $50k, and especially under $30k in Pittsburgh is going to have major, major issues whether they're apparent from the pictures or not.  

@Caleb Heimsoth

@Caleb Heimsoth

Yes, solid numbers, not an exercise.

And while I agree that first flips may not go well, I disagree that it is a reason to avoid family and friends who are eager to support your venture. As long as the numbers make sense and the risk of the investment is more on you than them.

$70k purchase, $30k Reno, ARV $140-150k. I have my R.E. license which helps reduce costs at the sale as well.

Bringing $70k on our own between unsecured loans and cash. Raising the remainder from 1-2 friends. Worst case scenario, their investment is significantly less than the current value of the property and we take the hit on our end.

Time is our biggest enemy, but I’ve calculated a number of worst case scenarios and am fairly confident that we will be able to adapt and change course if necessary.

I guess we are just looking for some guidance as to the practical steps involved with borrowing from the friends, which liens to file and how, any recommended resources, etc...

Planning to do our first flip in the next couple weeks.

Taking an unsecured loan from the bank, savings, and borrowing money from 1-2 friends.

What advice do you have for making sure the friends’ investments are secure and safe? I was thinking of filing a primary lien on the property to secure their investment (hard money - interest deferred format). Anyone have recommendation on forms or process of doing this?

@Jason Lavender Any update on this? What did you eventually figure out?

We are doing our first flip in a week or two and borrowing money from a friend. I want to put a proper lien or something on the title so that they are assured to be paid out first upon the sale of the property.

Good points @Nick C.

Definitely not trying to undercut them. My question was more In terms of ways to structure the loan.

Is it common or accepted to defer all payments until the sale of the property and then give first preferred payout to them with principal + accrued interest based on date of sale? Or is suggesting that option overstepping?

Do they get a lien against the property like a hard money lender would do? If so, how does that work?

What are some of the different ways that you have structured angel investment agreements when working with friends or family who are willing to invest in your project?

I have an opportunity for $70k purchase, $25-30k reno budget, ARV $135-150k. We can pull it off on our own with an FHA/203k loan, but would prefer to just get in and out and not make it a primary residence for a year.

We can relatively easily come up with $50k cash by leveraging credit and our savings, however, I'd like to approach a couple different people who have always said "let me know if you ever pull the trigger on a project" for the other $50k.

I know that a deal can be structured in a million ways, but I'm interested to hear your success stories.  Obviously, if we don't have to, we'd prefer not to give away percentage of profit.  Especially because we will be doing the labor/project management.  And if we are paying high interest to the angel, they're really no better than hard money and I'd rather not risk the relationship.

Interested to hear your success stories and innovative ways to possibly structure and propose a deal.  

Does anyone have any current experience with property management companies in Hilton Head?  Particularly for an Air B&B and/or VRBO arrangement?

I'd be interested to learn from you about your experience, fees associated, etc.

If anyone is investing in Vacation Rentals in Hilton Head, please reach out!  I'd love to pick your brains for a quick minute.

Thanks!

Newbie here.  Been looking daily for an opportunity to get my feet wet and I have found a rental investment opportunity.  Two properties, adjacent to one another, but different owners.  I like the idea of having two in one location.  

I'm wondering if there is a way to coordinate a single mortgage to finance both properties at once as a single investment. Both fall within the scope of BRRRR.

The properties are $17,000 and $12,000 respectively with an estimated $10,000 necessary to make sure they are rental worthy ($40,000 total) Still doing the research on market rents for the area, but can't imagine gross rents being less than $500 and $600 (2BR 1B and 3BR 1B) yielding gross rents of $1,100/month. ARV $90,000.

My initial thought is to find a family member or private lender willing to partner with me.  Together we would bring $20,000 cash for 25% downpayment and repair budget, and co-sign a mortgage.

Is this a good way to do it? Are there better ones?  I'm fine with splitting ownership/profit down the middle unless you guys think there's a way to do it better.

Thanks in advance!

@Account Closed I'm new to REI as well. Trying to get going and find a way to balance the desire for current income with a long term strategy. I found the BP Podcast #207 pretty encouraging. If you haven't listened to it, you should. Devin Elder had some really good points.

Podcast #207

Has anyone used their access to MLS to find houses that have been flipped in their area? I know I can dig through sold listings individually, but didn't know if anyone has found a way to aggregate the necessary data to see lists of homes which were sold twice within a designated period of time, chart the spreads, possibly see pics of the results, etc.

I'm spending a lot of time scrolling through sold listings in my target area/price range to try and develop a gut feel for what homes are selling for and in what condition.