All Forum Posts by: Matthew Nixon

If you have a contract with the seller there is no way for them to go around you. 

Either way I'd recommend finding some new investors to work with. If they don't appreciate the hard work you've put in to lock up a deal there are lots of other out there who will. 

@Rich Bravo

@Will F.

Taylor Pacific Construction

I've had clients use them and they have been pleased with their work. 

 That all depends on how motivated the seller is and how good of a deal you can negotiate.  In the above scenario I would say you only have room to add on ~5-10k for your fee.

Michael Quarles is one of the best negotiators around. He's from your area so I'd definitely look him up. 

@Jonathan Guerrero

Not a whole lot has changed in the market from a year ago. Distressed inventory is still low and demand for that type of property is still high. But one thing I love about this market is you will always be able to find a deal if you look hard enough.

Depending on how hot the neighborhood is, investors are paying between 80-83% of ARV for your standard 3-4 month cookie cutter flip (purchase+rehab/ARV= 80-83%).

So if you come across a potential deal with a $550k ARV and it needs 40k in rehab, as a wholesaler you need to run it like this:

$550,000*.83= $456,500 - $40,000 - $your fee$= your offer price.

Good luck!

@Chinua Rhodes

I'm not local but I can offer you the terms you are looking for, and possibly go higher on the LTV. Feel free to call or send an email my way.

Welcome to BP @Yenipher Barrientos

Abraham Segovia

714-913-8662

riteinspect.com

@Andrew Robbins

@Nick Mercurio

Which city in particular are you most interested in? 

I'll have one of our analysts whip up a report for you.

Count me in 

Big hedge fund backed companies like Blackstone Group and Colony Capital are getting into lending... Why Now? What does this mean for flippers who use private financing to purchase distressed properties? What type of ripple effect is this going to have on local lenders who aren't built to compete with the low rates of the investment giants? 

Here are a few of my thoughts and takeaways after reading. 

Why Now?

• They've spent the last few years building Billion dollar rental property portfolios when there was an abundance of distressed inventory.... These days not so much. 
• Big pockets and access to cheap capital makes it possible for them to scale the business on a national level. 
• The demand for the product is there. Banks have been unwilling extend credit on speculative investments such as flips. This has lead to increased demand for non-bank financing, and in-turn local private money lenders have been reaping the reward.
• Average gross profits for flips are up y/y and at its highest point since 2011

What does this mean for flippers and local hard money lenders?

• In big markets like southern California, the hard money market is crowded. You may see some of the smaller companies start to fall by the wayside and move to a different niche. 
• Flippers will benefit as hard money rates are likely to get even cheaper. 
• For the smaller companies speed and service will be the competitive advantage they rely on to obtain and retain customers

One point that was raised in the article that I found interesting was... Will the increased competition result in relaxed underwriting and loan chasing? What kind of impact could this have on the real estate market.

Check out the link below and let me know what you think!

Link