All Forum Posts by: Mike Barron

Just my .02 ... Never EVER go to see a property until you know they are ABSOLUTELY motivated sellers. this will save you so much time and money. We usually work out 99% of the details over the phone before we even step foot on a property. HAVE A SCRIPT so you ask the same questions about every property. It sucks hanging up and then remembering you forgot to ask an important question.

Do your DUE DILIGENCE! We pull records from the recorders/assessors websites about mortgages, liens, tax info and what type of deed the current owner has for the property.

When we get to the property, I point out as many issues (tactfully of course) as I can and ask them for the best price they can give me considering the condition of the property. If they absolutely will not give me a price, I low-ball it and see what they say.

Again, just my .02

Hi all! New here and need some feedback on a house flip-flopping on. Most of the houses I've been dealing with are low ARV older houses, but a lady contacted me about a newer house she and her husband purchased in 2005. Her husband passed and she is now living with her sister. Anyway, she has a $66,000 reverse mortgage on the house and wants to sell fairly quickly.

The house is a 3bd/2ba 1104sqft single story built in 2002 on a lake in a very nice neighborhood.

The figures I come up with are as follows:

ARV: $98,000
ERC: $5,000 (Seriously! Only needs carpet and paint)
Wholesale Price: $71,500

Holding costs: $ 5068 (Hard Money Loan)

Loan Amount: $68600 (70% of ARV)
Months To Sell: 3
Interest Rate: 15%
Loan Costs: $2,058 (3 points)
Payment Terms: Interest Only
Loan Amortization: 24 Months
Monthly Taxes: $81
Monthly Insurance: $65
Monthly Payment: $1,003

Closing Costs: $4,400
Potential Profit: $12,000

I'd be purchasing for roughly $66,000 and wholesaling it for $71,500, and would make roughly $4,000 on deal the after splitting the initial closing costs.

I think the numbers are a bit tight, but it's such an easy flip. Is this a decent deal or not?

Thanks!