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All Forum Posts by: Melissa Searing

Melissa Searing has started 24 posts and replied 85 times.

Post: To Move or Not to Move... Charleston to Greenville, SC

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17
Originally posted by @Jay Hinrichs:

@Melissa Searing

  well I would not exactly call it stroll.. I do fly into town.. I do very targeted direct mail.. and it is not like anything that I have seen anyone else do...

I put one into escrow yesterday... it popped up on the hot sheet... My realtor has me set up.. we had offer in within an hour went back and forth and ratified the contract last night.

Now again I am a cash buyer with cash in the bank so my proof of funds is very strong. So its not a letter form a HML or a pre approval from a bank its proof that I have the cash sitting in the bank. I use very large EM deposits.. customary deposits from my days in CA but when I went out in the mid west or even up here in Oregon.. first time I wrote a 20k EM check the realtors eye bugged out LOL..

And because now I have a little rep going with some of the better switched on realtors they give me first pass at the deals.. I did 3 rehabs that one realtor brought me last year that were killer deals far better than I do here in Oregon.  And of course I take very good care of said realtor..

So nothing earth shattering just leveraging my connections and my ability to pay cash.. And the other thing is I don't beat around the bush and make offers with contingencies hoping it all works  unless there is a title or zoning or variance issue I close what I contract for and when you get that rep.. the realtors are going to come to me first after all I am EASY MONEY TO them and they get the list back.. So you know the values there if we buy a fixer for 300 and resell at 550.. and they get 3% or in some cases he is double ending the front end.. that's 18k selling it to me and 16,500 on the resale.. Another reason I think many people miss the boat by not getting into the business as agents.. and thinking only of wholesaling unless you can be like Russ who is VERY good at what he does with their systems and team work.. the agent route is viable.. Any way I will be back out end of oct.

We have 9 new construction starts in Aug so about end of oct we can see water tight framed in homes.. Plus I love it there.. its a really cool town...

Well, Mr. Jay, you are exactly the reason why I posted my message in the first place and why I think I need to go to a different market. I don't have cash coming out of my ears like you. ;) In my post I mentioned how all-cash buyers in Charleston are beating everyone to the punch. People like you with cash are the ones beating people like me with limited resources! Boo hoo. I'm going to go cry in my Lowcountry Boil now. 

Post: To Move or Not to Move... Charleston to Greenville, SC

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17
Originally posted by @Jay Hinrichs:

@Melissa Searing

  Well we are doing the opposite we are coming all the way from Portland Oregon to invest in Charleston... Remember its not all about cash flow.. the big money is made in appreciation and move up in Values.. cash flow is nice.. But the chance of significant appreciation is just as or more important. If I can stroll into town 4 times a year and in 3 days buy deals.. you living there can certainly do it.. Charleston is one of the Best markets in the country in my opinion. Just as hot as our market here in PDX which is also one of the best markets in the country and somewhat under the radar as well. Well very much under the radar..  Markets that have potential for big appreciation run up are not going to be 2% rule markets... you must weight these factors plus quality of life..

Thanks for your response Jay. May I ask how you are finding your deals that you stroll in to town and buy in 3 days? MLS?

Post: To Move or Not to Move... Charleston to Greenville, SC

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17
Originally posted by @Chris C.:

As an investor in Greenville I tend to agree with @Prag Patel.  Live where you are happy.  You can find deals in Charleston and with a good team in Greenville ( We can help you with this) ;) you could easily invest here.  My wife and I come to Folly almost monthly and it is just a 3 hour drive.  The Greenville market is very strong and I would definitely encourage you to research it.

 Hey Chris! Thanks so much for your response to my post. If you and your wife come to Folly, let me know if you'd be willing to meet up with Michele and I. We'd love to buy you two a beer (or lunch or a coffee :) ) and pick your brain about Greenville. Thanks!

Post: To Move or Not to Move... Charleston to Greenville, SC

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

So, I have been talking with local investors in Charleston and I am hearing that the market is too hot and that I should wait until there is a shift before I invest. They're saying that cash investors will beat you to every deal and that prices are just too high in general. 

SO... I work from home, so I can live anywhere... and I'm thinking about re-locating to Greenville, SC in order to start investing. It's an up-and-coming city with great growth projections. I am thinking it must be easier to invest there than in Charleston? I'm kind of bummed out at the thought of not investing in Charleston, though. The ocean isn't going anywhere (at least for awhile!) so I think that adds value that Greenville will never have. And I think Charleston is just a pretty great city. 

But I digress. I'm wondering if anyone has any feedback about the market in Greenville? 

Thanks!

Post: B2R Finance vs Partnership - Which should I choose?

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

@Account Closed Thanks  for that info! I found a debt service ratio calculator online. I have no idea if I'm doing this right, but it seems like if I borrowed $200,000 at 6% with 30 year amortization, my debt service annually would be $14,453.  When I take that number times 1.2, it equals $17,343. When I divide that by 12 months, it equals $1,445. So does this mean that I could potentially have a deal if I can collect $1445 per month in rent? Or will I have to subtract vacancy rate and cap ex from the cash flow? Am I even doing this right? Lol

Post: B2R Finance vs Partnership - Which should I choose?

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

@Logan Dickson Thanks so much for your response! I am just trying to determine which would cost me less money... paying a higher rate for 3 years (B2R will have a pre-payment penalty if I refinance in less than 3 years) and potentially a greater down payment...or doing conventional financing, paying PMI and splitting any profits in half after 3 years.

Argh! I was never any good at math! :D

Post: B2R Finance vs Partnership - Which should I choose?

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17
A rep from B2R Finance emailed me and said that they will be offering a 30 year fixed loan for single-family homes starting this August, and they do not use income or W-2s for financing. They use the property's cash flow and require a 680 credit score. Does anyone know how much cash flow they expect? I am unable to get conventional financing on my own since I have not been at my job two years. I plan to house hack and live at the property, but my question is, would it be better to use B2R Finance...or partner with a family member on a house and use conventional financing? Here are the details for the B2R program... -30 year fixed rate term -Rates between 5.5-6.5% -Prepayment penalty for first three years of term -Minimum loan amount of $60,000 -Up to 75% LTV Also, does anyone know if getting a B2R loan would disqualify me from being a first time homebuyer with Fannie Mae?

Post: $380 Monthly Regime Fee - Is a Deal Even Possible??

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

@Michael Cone @Justin Tahilramani Thanks for your responses. I went and looked at the property today. The exterior looks awful on all of the townhouses, except for a few that they have re-done. Supposedly they are re-doing the facades for this phase within the next year or two. I just don't think I can stomach $380 per month for this place in general. It just seems absurd. I spoke with a woman who rents the townhouse next door and she pays $1200 per month. She said she knows someone else in another unit pays $1400. It just sucks that the regime fees are so expensive because the location is killer.

Post: $380 Monthly Regime Fee - Is a Deal Even Possible??

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

I can't imagine that it would be a wise investment for me to purchase a condo with a $380 regime fee.  This community takes in a total of $1,0042,000 in total regime fees annually. http://www.montclairpoa.com/pdf/budget_2015.pdf. You'd think it was the Ritz... but it's not. There are two (average) pools, a tennis court and 2 workout facilities. http://www.montclairpoa.com/pdf/regime_fee_explana...

The reason I am even looking at this property is because it's a short sale and because maybe other busy investors would shy away from it because of its issues. The ARV is probably around $165,000 and the "unapproved" short sale list price is $120k. It probably needs $15k+ in repairs and the listing says there are 2 liens and $13,000 owed in assessment costs. Yikes!

I could probably get $1400/month rent. The rental market is great here and this unit is 3 miles from the beach. I think, if it wasn't too risky for me to purchase it, it could make a great vacation/rental property, simply due to it's location. It is also across the street from a fairly new outdoor town center with tons of retail shops and restaurants. 

Mount Pleasant, SC is close to beautiful beaches and is a "hot" market right now with expected growth. I have heard that investors aren't really able to find "cash flow properties" in Mount Pleasant... they are banking on the appreciation.

What do you guys think? Would you look further into this property?

Post: On house flip TV shows, why do none of the investors get inspections??

Melissa SearingPosted
  • Flipper/Rehabber
  • Charleston, SC
  • Posts 99
  • Votes 17

Thanks for all of your replies! @Mark Elliott It's great to know that I can do a simple inspection. For me, as a new investor, I think I will get a simple inspection as well as have a contractor look at any property I am seriously interested in. Then, someday when I know a lot more than I do now, I might be able to start cutting that corner.