All Forum Posts by: Michael S.

The real question is -- "Why not do both?"

Have 2 properties under contract right now. Will be rehabbing one, wholesaling the other. Wholesale deal will bring in around 8k after funding fee, closing costs. Rehab deal has potential for 25-30k profit, will be my first flip.

Stephen,

That wasn't me. My last name is Sogard if you are tryiing to find me, not sure what you mean though.

I'd be happy to talk with you anytime. I'm curious to know what this speaker said about Dayton!

Thanks everybody. Karen, I will get pics up soon.

Any other thoughts/ideas?

30 year fixed will keep your payments low and give you more cash flow. FHA just means the loan that you get from the bank is insured. 3.5% down, has to be in decent shape normally as opposed to a conventional loan where you typically put a little bit more skin in the game (5-10-20%). Remember to put 30% of your cash flow aside for vacancies, repairs, etc.

Good luck.

Dayton, OH.

How about being all in for 60k and renting out for $900?

I work with investors who buy sight unseen from California and Arizona but none of them want one this high (they buy under 50k normally). Email me if you want.

I've grown a little tired of wholesaling and I'm ready to give rehabbing a try. I have a 3bed/2bath brick ranch in a good area under contract and am set to close soon. I got it at 70k, ARV is around 155k -- will be putting 35k or so into it. There are some structure issues which I will be fixing for around 6-7k, but my real problem is this:

http://gis.co.greene.oh.us/website/gis/parcels/sketchinit.htm?h_pid1=B42000400110011000&h_pid2=&h_criteria=sketch

As you can see on the sketch, there was a 2 car garage added directly behind the attached 2 car garage, with the garage door facing the backyard. This new 2 car garage was put on a while ago and is essentially attached the first one (have to look close to see this was an addition. Unfortunately, it would be very difficult to even access this garage even if you wanted to as you would have to drive through the grass on the side of the grass. I would need to put quite a bit of dirt in front of the garage door to make it level anyway. You wouldnt be able to drive through the first garage into the second because the 2nd garage is a few feet lower than the first.

I'm trying to figure out what to do with this extra garage. Should I keep it like it is? Make it accessible as a garage? Turn it into a room (no heating/air).

By the way, the area in between the 2 garages is just a narrow hallway. Keep in mind the brick from the original back of the house is now the back of the additional 2 car garage.

Any ideas would be much appreciated!!

I would say it depends on where you live. In Ohio it's $120 or so to start an LLC, so I started mine before doing a deal.

I think wholesaling is as easy as the gurus make it out to be if you work hard. I had the benefit of being a Realtor and it takes a lot of networking and hard work -- but there's no doubt you can do a deal in your first few months if you really want to. I started 6 months or so ago and have done 9-10 deals, but I do have a business partner.

As far as the website, find a website guy and they can take care of that for under $500. We actually are still yet to even have one made and do our deals primarily from probates and bank owned (HUD's) only right now.

Pick up the phone and talk to 40-50 people a day for a few weeks. Put everybody's info on a spreadsheet (name, email, phone #, occupation, notes). Have lunch with 3-4 of them every week. Consider getting your RE license.

Good luck.

I just got a few HUD homes accepted and have sent in the contracts. I have transactional funds lined up and will have no problem lining up the end buyer. I'm simply waiting to hear that my contracts were done correctly and that we have closing scheduled before I begin marketing. My question is this:

Since I will be double closing, can I market this to any buyer no matter where their money is coming from? (Conventional, FHA) or will this need to be a cash only purchase? One of them could go FHA, the other would have to be Conventional if it were to get a loan.

The one that could go FHA would probably sell to a retail buyer if I was able to hold it for longer than 24 hours and list it on the MLS. Any way to make that work?

Thank you!

Yeah George, the sellers reputation is shot considering they sold it to us for 30k and immediately began shopping it around for a higher bid. All the while of course, we are putting up handwritten signs all over the city advertising a home for sale. Get real.

My reputation is intact, believe me. I reviewed every line in the contract before getting it signed.