All Forum Posts by: Marcus Blalock

I am currently looking for a private/hard money loan in GA and I am working on a short time frame as I am suppose to close this Wednesday, 7/27, and the funds have to be wired to the closing attorney. 

Here are the numbers for the house which is located in North GA:

PP: $23289

Rehab: $30000

ARV from appraisal: $81500

I can provide purchase/sale, appraisal, scope of work, and line item budget for the project. The timeline I'm on is tight as we are suppose to close this Wednesday. If you are interested in the loan or know someone who is, please let me know.

Thanks

Here is a REIA group in Savannah that you might want to join and start networking/interacting with people at: http://savannahreia.com/

The guy who runs it also runs the Atlanta and I think Charlotte and Tampa REIA's as well.

Never thought of it that way.  It also depends on how you use it.  

We just used FHA 3.5% down with a 203K loan for a personal residence. We found a property that needed rehab and was a value add opportunity. Once all repairs are complete and the loan has 12 months seasoning we will refinance out of FHA and remove PMI.

 @James W.

I think you are confusing list price with ARV. The price that an REO is listed for sale at is not the ARV. ARV is after rehab value. What would the property be worth once rehabbed.

The list price of the REO is the value that an appraisal and/or BPO (broker price opinion) deem the value of the property to be in it's current condition before rehab.

The 70% rule that rehabbers use is: ARV x .7 -rehab costs = your top offer price. If your top offer price is not usually within about 95% of list price, either the property is overpriced and you need to wait until the price is dropped or your numbers are incorrect and need to be recalculated.

To think that you can go in and offer 20% below list price of an REO and get it accepted is not realistic. And to expect an agent to submit that offer for you is not realistic.

We are currently going through the process of an FHA 203k. We used an independent broker named Bobby Allison in Chattanooga, TN from American Home Mortgage: http://americanhomemtg.com/

There are 2 types of 203k's: the streamlined and full version. If your rehab estimate is more than $35k or you have to make structural changes to the property you must use the full verison which has more oversight from FHA inspectors and more paperwork. We are going the streamlined version.

The biggest hurdles that we have faced so far was getting the estimates from contractors and they must be licensed and insured.  You must get 2 estimates.  For the most part, contractors don't want to deal with the detailed bidding process or the hassle in paperwork.

All work that will be done must be in the rehab estimate even if you plan on doing the work yourself.  The reason being is that for some reason you are not able to complete the work yourself, it must be covered in the budget.  Also, any work that you complete yourself, you can not be compensated for and the project must still be oversaw by a licensed contractor. 

And these types of loans take a while to complete.  60 days is probably the soonest you can expect to close if everything goes perfect.  We are at 4 months right now, but should close within the week.  We had some other issues arise like title issues (having to get survey done) that has delayed closing.  Our original closing date was April 29.  We went under contract on February 6th, I think.   

Here's some guidelines from the streamlined version/bidchecklist of the 203k. Follow the link:

https://www.dropbox.com/s/cn7f7g48sdjmlmg/fha203kb...

Motivated seller! Price reduced. 

Now $62500

Call or Text 678.499.9283

3600 Forest Peak Summit, Marietta 30066

4 bedrooms

2.5 bathrooms

Will be delivered empty.

Purchase Price: $260,000 Comps: $325,000

To View: https://www.dropbox.com/sh/pzmlnkz5gq03xxl/AADR2xs...

Call or Text 678.499.9283 

250 Dodgen Place Mableton Ga. 30126 

Asking 76,000 

Arv 145k

3 bedrom

1 Bathroom

1026 sqft

Rehab: 35k

Here is the perfect fix and flip in raw form, just how you like it in hot Mableton. Mixed community good for first to home owners and strong rental potential. Convert the carport into a 4th bedroom and bath making this a 4/2 and watch the property sale itself

Call or Text 678.499.9283

Want to purchase rental properties with owner financing in the Chattanooga area or North Georgia. Also interested in master lease options for rental property as well. 

If you have any property available or have leads to someone who does, please reply or send me an IM with your contact info, possible terms, info about the property, etc. Thanks in advance.

Just to clarify, I have a question about the above.  If you purchased the property for $78K, then rehabbed it and it appraised for 100K, you would enter $100k for the cost of the property when entering the data for deprecation, correct?