All Forum Posts by: Mel Hayes

Can anyone recommend a good Draftsperson or Architect for plans to be submitted to the city? Searching online you get tones of people who build custom homes and that's not what I'm looking for. Looking for someone who can draw plans for the property as built and a proposed build. Thanks you

0 Votes

Memphis, Tennessee

Originally posted by @Jason Rhodewalt:

Awesome - thanks for sharing. I'd be curious to know how much rehab you had to put in? Also what part of Memphis?

Hi Jason, I purchased this property from a rehabber who had already done the rehab. The only thing I did was replace the floor with vinyl. They rehabber had planned to install carpet throughout the house but I knew that would be a problem going forward with tenants. This house is located in Westhaven.

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Memphis, Tennessee

Just my opinion on Reedy. They put out a poor product. Their rental adds are poor. Their pictures are poor. Their houses sit on the market for a long period time. If you put in the time to get your rental ready and do your own marketing you don't need property management like them.

1 Vote

Memphis, Tennessee

Originally posted by @Ariel Elchadad:

hi mel

can you please share with me the contact of your lender ?

thank you

Jason Overton with Patriot Bank in Memphis.

0 Votes

Memphis, Tennessee

Hello Memphis BP, I just wanted to share that I finally completed my first BRRR deal sorta.

Purchase Price: 76k (I bought this property from a rehabber in 2019)

Purchase Method: Cash

Monthly Rent: $1,150

Appraisal: 190k

Cash out Refi 120k (minus 7k for closing cost plus points) cash in hand was roughly 113

What I learned during the process: Important to show income on your taxes I have a W2 so not having my properties on my personal w2 did not kill me but if you're a full time investor trying to not pay taxes or showing properties as a lost may hurt you when trying to refi. Lots of banks right now are staying away from refi'ing investment properties and also 2nd homes. If they are doing it the rates are a tad bit higher than they normally would be. I decided to pay points to get a lower rate. Asking agents for referrals is a great way to get good lenders. My agent gave me my lender and although I shopped around and spoke with other lenders, the local bank had the appraisers and the connections to get everything done and keep cost down.

If you have any questions are comments please let me know. Time to find the next one.

2 Votes

Memphis, Tennessee

@Mindy Jensen Rentredi.com is the absolute best thing to ever happen to me. Tenant can pay by ACH for no fee or Credit Card for fee. The customer service is outstanding.

1 Vote

Originally posted by @Justin Sullivan:

There are so many do's and don't's to flipping and it isn't so simple as just a brief explanation as a response to a forum post. If you are dead set with tackling this project solo then I suggest you factor in a decent amount of contingency cost and extra time for the project to run over. Not saying that you can't get it done quickly and with minimal headaches but if you expect them and they don't happen then its a win win.

Another option is to partner with an experienced flipper and split the proceeds with them. This way you can learn while you go. I have someone who has put up the down payment for my flip just to be able to shadow me and learn the process while also receiving a return on their initial investment.

You could always wholesale it to someone else. If you really want to BRRR then stick to BRRR and let someone else who knows what they are doing flip. One thing that drives me crazy is someone who buys a deals and messes it up demoing things that don't need to be demoed or doing shotty work then re listing it back on the market and trying to make a profit off of it. If you commit then commit and get it done no matter what.

Regardless whether you BRR or flip your going to need good contractors so that is a start. Make sure you find good quality contractors to fix the place up. Remember cheaper doesn't mean better. You may save money but the headaches will not be worth it. Make sure you vet all you bids by asking for references and walk jobs that they just finished and are currently working on. IF they don't have any or can't walk you then run away. They should have projects to be able to show you if they are good. One tip for finding contractors is the look at recent deals that were just flipped and go to the twp and figure out the contractor who pulled the permits.

All in all there is several ways to tackle this but whichever way you decide just pick it and commit. Don't back out halfway through or change your mind. Follow through with whatever option above because all of them will work and make you money it just depends on how much involvement you want in this deal!!

Good luck

Hey Justin,

Thank you for your response even though I'm not the original poster :) Would you care to go a little deeper on how your partnerships were structured legally? Were there lawyers involved? Did they come onto the deed? How did you guarantee them that once the project was finished you would not run off with the profits?

Thanks

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@Duncan Hayes

Great advise.

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Originally posted by @Brendan Miller:

@Mel Hayes I’m curious what the advantage of seller financing would be in this case if it’s a 1 yr balloon payment? Are you not able to secure traditional financing?

Hey Brendan,

I asked myself this same question and here were a few answers I came up with. I get to the lock property up for 10% down instead of 20%. My profits can go towards the rest of the 10% I will need to finance out. I can use the proceeds form the house to present to the bank or other investors. If all else fails I can possibly sell for a profit at the end of the year.

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Originally posted by @Charles Carillo:

@Mel Hayes

You could refinance it with another private lender but I would try to get a little longer of a term from the seller; maybe 2-3 years and then focus on adding value to the property. The more value you add, the lower the LTV will be on the refinance and the less risky it is for the lender. Usually, the less risky it is, the more lenders you will find for it and hopefully with better terms.

Ahhhh... didn't think about using another private lender. Great advise. The seller is giving me a hard time about the length. I tried explaining to them the longer the terms the more money they make but they not listening.

0 Votes

All Forum Posts by: Mel Hayes

Mel Hayes has started 41 posts and replied 254 times.

Post: Looking for Draftsman/Architect in Memphis

Post: Full circle deal just completed.

Post: Reedy Company Management

Post: Full circle deal just completed.

Post: Full circle deal just completed.

Post: How do you collect rent?

Post: HELP!!! New to flipping

Post: Seller Finance deal exit strategies

Post: Seller Finance deal exit strategies

Post: Seller Finance deal exit strategies