All Forum Posts by: Martin Elkins

@Tom S. That helps tremendously. I’m trying to start getting offers out there, incorporate as much knowledge as I can, without getting bogged down by analysis paralysis.

@Tom S.

Thanks for the response. I’m just getting into this strategy so forgive my ignorance. So that would occur after entering a contract with an accepted offer? Do that language have to be in the initial offer contract?

Lance, just came across your post here while looking for the same.  Did you ever reach a conclusion?

Hey @Jordan Archer sounds great! are you creating a meetup or running it through BP or what?

@Michelle Clark I’m in the area would be happy to chat

Hey Maverick, come to the CFREIA meeting tonight in PSL @ 6:30pm.  I'm not a member yet so I have nothing to gain from it but I'm looking to build my network in the area and I think that's important for anyone looking to get involved.  I'll probably join if the meeting seems good.  Sign up at CFREIA.com and the first meeting is free when you register a free account on the website.  See you tonight if you make it!

@Art Perkitny can you explain a little more about the risk map you provided, what the different scores mean (I.e is that the standard A thru F ranking?) and where you can find it?

No problem!  I actually enjoyed figuring it out (Hadn't used this calculator before). 

I'm surprised though, that the holding costs during the rehab portion are not included in that TCI number.  It seems to me that would be cash you would need to outlay.  Maybe another member can explain that exclusion.

All that said, the refi here doesn't make any sense? You would have to put more cash in, just for a higher interest rate and a lower CoC? Not sure why you'd make that choice. The idea of a refi is to get more cash out so you can go invest it elsewhere. Because the og loan is at 3.5% down, the ARV doesn't increase enough to justify the new 30% down loan you're calculating.

The 8.64% comes from the post-refi annual cash flow divided by the Total Cash Invested. ($411.38*12)/$57,109.51

The Total Cash Invested isn't explained well but it's calculated as:

(Original loan balance @ Refi (i.e. after 6 months)  ($180,995) + Refi loan fees ($2,500) + Initial Cash Needed ($34,615.00)) - The refi loan ($161,000).

So ($180,995 + $2,500 + $34,615) - $161,000 = $57,110

Another way to look at it is that you are still investing the new equity you built paying down the original loan principal so the real formula is:

(Refi - Original Balance) + Refi Fees + Original Cash

Thanks Matt.  Appreciate the feedback.  I understand the seller/listing agent wanting to avoid tire kickers but I think if they aren't willing to at least give some pertinent information up front (fine with an NDA) then it's likely not worth it.  

On the contract side, is it possible to write a contract shielded enough to the point where it is essentially contingent on certain returns/numbers?