All Forum Posts by: Matt Markel

@Justin Thompson  @Chance Housos

Your input is much appreciated. Talk about an awkward position to be sitting in walking into bank and banker looks across the table and tells me no on VA loan, as you guys stated. So the numbers are solid, as ARV comes from 3 realtors, who work with investors. Rehab budget has to be flexible I know, which those numbers come from contractors, who are investors and work with investors as well. AC is being done by a friend of mine, which is a 2.5 ton for $3K installed, kitchen is only counter top and stove only. Which that number may come in lower as I spoke with an old Menards boss of mine and he cane get me a better price on counter then contractor was getting. Also in kitchen they have no hardware, and I am back and forth on putting in hardware as that can be expensive and people may not like what we chose. The house is in really good shape actually, no damage, and carpet was only 1 year old when divorce went through and couple just gave it up is what neighbors say. I know things can come up anywhere at any time, I felt a little more comfortable with this one as it is newer figuring less surprises.

For financing, I have had a friend who has wanted to get into REI, and he still lives in apartment so no home loans. He was looking into using a rehab loan to purchase and finance repairs on home, then sell it. 1st question-Hearing what you guys have said, may be same case where would need to hold it for 90 days before FHA loan could purchase it?

2nd- Would you partner with a friend like that?  I am good with business being business, and blood is thicker then water, so I don't have a problem with working with family, but I know how people get about money, and don't want to loose a good friend over a bad deal.  

Cash sounds like best option, obviously, have an option but it's a tough route and a very conservative person. My mother in law has liquid assets of around 500K. I have thought about showing her the deal and the options to get out of it too, flip or rent. I wonder what ROI would be enough to get her to jump but not give up to much profit. Just thoughts from a new guy. Thanks for your time and education.

So I am looking into a 3b 1.5 ba 1500 sq ft with 2 car attached garage. This would be my first flip, but newer REO home, built in 2004. Fair condition, needs AC, updating in kitchen. clean up and landscaping. Asking price is 95K, ARV is 135k, with rehab at $8500. Concerns are going into fall being able to sell quickly, as all fixes are able to be repaired in 12-20 days. Also, it is in an area of town that in the 2003-2005 range was an "in-fill" area of town and all homes are like build, but with 3 just like this on the market now. One of the properties is sale pending, the other is on market for 1 week now. If not sold, how difficult can it be to refinance and keep for rental? Rents aren't great but it would clear 2-300.
My experience is general handyman around home, basically doing a flip in my first home while I lived there only hiring mud/tape and refinishing wood floors. I have a friend willing to help who is a contractor and a brother who is a licensed electrician. Using VA loan so cheap to get into and market in this area is good, though the time of year is a concern for sure.

@Ethan Hamilton how has the plattsmouth project turned out for you? have you been able to finish it up yet?

I have found a multi family property that needs some rehab. I am working with a local, experienced investor, who wants me to not just ask him questions but use tools like BP to get the education and range of experience from others to form my plan for the property and then he and I will sit down and go over my plan and his plan to make our plan. I am wondering what people think about separating utilities? We have a property that is 3 units, purchasing for 16,500, needs about 30,000 in rehab and ARV is 90,000. Rents will be about 425 for the 2 1BR units and 475 for the 2BR unit. In speaking with contractors, to split all the utilities, it would be about 20,000. Would resale be better with separated utilities? Just looking for benefits either way.

Chad, I am in the Omaha area. Like you, I am new to REI, but I also went to the REIA meeting in Omaha on Monday. A few people have posted here about Lincoln being a promising location to be investing in with UNL having the largest incoming freshman class in its history. On Omaha, people have spoken as to Omaha having made it through the economic hardships better then most other areas, with multiple fortune 500 companies and 2 major medical universities. If I can find the posts I am referring to I will try to send an alert your way.

What type of investing are you looking to focus on?

well, it took one mention of clicking the download link and I noticed I could download to my phone. thanks guys much appreciated.

Does anyone know if it is possible to download podcasts to android cell phone? if so, how do you do it? not the most tech savvy, but I do know how to do the iTunes and ipod podcasts but haven't learned how to do it with an android device.

@Jon Holdman @Robert Leonard @David C. @Jeremiah B. @Ben Leybovich

@Marcus Johnson @Jeff S.

By 250-300k cash, I mean walk into her house and open safe and there it is. She is 52 and no debt. I am the executor of her estate so I know how she has her financials arranged. Net worth of 3.5m. Assuming worst case, and I know she always does, would it be best to offer someone like this a partnership, or percentage on ROI or what? I haven't done quick flips, but have experience in total renovations on my personal home.

As I was mowing someones lawn in my neighborhood, I was listening to BP podcasts about flipping while having a full-time job, with James Vemillion. I have always been good around the home, and originally thinking that buy and holds would be best due to time. Though listening to him, I think fix and flips would be best way to build capital to purchase properties for buy and holds. I work as a physical therapist doing home health so I set my own schedule and have plenty of free time to manage projects or contractors. Either way, I appreciate peoples input. As previously stated, I always see the good things, sometimes i need someone to pull my head out of the stars or another location...

My mother in law is someone who has very deep pockets, cash of roughly 250-300k. She is very open about her finances and income. She is always the "Debby Downer" type, on everything. I would love to show her a couple deals that realtors and I have found, with plenty of meat on the bone, and easy areas to rent if the sale would fall through in the end. Would love to start small, maybe help with the down payment to get financing, or help with funding renovations. One benefit I see for her is she is extremely worried about her financial future, the company she works for is known for firing people who are months short of full pension benefits, which at this point for her would be about a $3k/ month, and I would love to show her how to we could give her the benefits tax breaks through the investments and growing a bigger nest egg before she retires.

Tom Goans - The house was a flip that sold for 99k after rehab in 2009, and the person who purchased the home in 2009 went through foreclosure just in the last year. The thing that makes me like it a little more is the fact I know the person who did the flip in 2009 before selling it for the 99k, he is an electrician with my brother and very successful in flipping homes. As for the inspections on the other properties, I didn't look at the houses the realtors used for comps, but I personally know 2 of them and they are successful agents who have been around for 20+ years. Being a new investor, what should I look at closely to compare properties to get a ARV? The comps that they were pulling were same area, and all within the last 45 days. I did call a couple landlords in the area to get rates for rentals in the area as well.