All Forum Posts by: Brad Farmer

Hi BP, I am looking into doing a joint venture flip with someone in my market who has plenty of experience flipping homes. I am looking for some information on a necessary contract agreement in order to align the expectations of both parties, and to ensure the payout is distributed evenly. If anyone has a certain contract that they have used before, that is applicable, that would be great. Also, any other words of advice on a joint venture flip are appreciated!

@Marcia Maynard is on to something.... im no wine expert but wouldnt it need to be climate controlled in order to preserve the wine?

Peter you should also ask yourself what kind of tax benefits you can reap from the property and how much it will be worth in 2, 5, 10 years.

Andrew Postell Gordon Cuffe thank you both. What kind of structured interest and points should I expect to pay on the first deal and what would be a normal structure that an experienced investor might pay?

I am just finishing up my first house hack 2 year flip and am looking to flip homes in Sacramento full time. With the money I will make from my first deal, along with private money from my parents and business partner, I will have roughly 100k in funding for a flip. A flip in this area will require atleast 3 times that. With that said, where should I look for more financing options? This isnt my first experience with buying and rehabbing per say, however it will be my first deal with a quick turn around. I have some contacts labeled "private money lenders" from the REI by @David Oldenburg networking list however because I dont know what to expect, or how to approach a lender, I havent made those calls yet. Any advice on how to handle this conversation and what a potential lender is looking for would be great.

Congrats! Any information you can share on what you have learned acquiring your first contract would be appreciated. Can you give any more details on the contract?

Shane, is there any way you can increase the value of your home? Diy improvements over the next year can put you in a great situation to refinance the equity in order to come up with the 20% down payment for the rental property.

Awesome! I love before and after photos. Nice job putting that drop ceiling to work with the recessed lighting.

Originally posted by @Mehran K.:

After 2 years of rental income on your tax returns, conventional lenders will use rental income in your DTI ratio calculation.

Keeping it short as I'm on my phone! 

 And what if I dont have my roomates on my tax returns? 

Originally posted by @Mehran K.:

You could also convert the property you live in now to a rental after you refinance, then make another owner-occupied purchase and move into a new home with a low down payment.

I thought about that, but what about loan qualifications? How would I qualify for a second house? Even with the PMI gone I dont know how I would be able to qualify for the mortgage.