All Forum Posts by: Account Closed

My wife and I found a home we want to purchase in Mesa, Arizona. We are approved for a 1.2 million dollar loan. However, the house we want to purchase is only 611k. It is a new construction home that was completed two months ago. The front yard and backyard are not done, its dirt. I would like to landscape both front and back. Put in a backyard living room with kitchen with built in BBQ. Also, put in a nice pool. I am thinking about 150k of work. I do have cash to do it, but I want to preserve my liquidity. 

I want to know if I can roll this 150k backyard project into the mortgage? Is this possible? How do I do it? Is there anyone on here that does that sort of thing or has a reference?

Thanks everybody for your time!

Thanks very much everybody for taking the time to help a fellow BP member in need of advice. You guys are the best!

I am an active investor here in Portland. Its a great market to work. However this isn't about me. 

I need advice on what advice to pass on to a buddy. I have a friend who has seen me enjoy some success flipping houses. I started with about 500k in cash and have paid cash for houses and not used any Hard Money Lenders to this point. My friend is going to borrow 60k from a family member to get a HML on a flip. He does not have a high paying job, just enough to support his family. No savings. It would be financially disastrous if they were to lose the 60k, they may never recover. He has a wife and four kids to support. I am a risk taker by nature, but this seems extremely risky, borrowing money to borrow money (HML). I am not all that familiar with HML because I have never used one. My concern, other than the borrowing, is the small margins they would probably have buying a house in the price range they can buy. Not sure the risk is worth the reward. He wants to be the GC too, he doesn't have a license.

I am having a meeting with these folks tomorrow, they are on fire ready to go flipping houses.

Should I pour cold water on the dream or encourage them to do it???

Signed 

Conflicted.

Will do. Thanks everybody for wishing me well on my first flipper. I wish you all success in your investing and wholesaling, If anyone wants talk shop let me know.

BP,

Been here on BP on and off for six months. I sure talked a lot during that period, but I finally put my money where my mouth was and pulled the trigger and bought a house to fix and flip. Its a 950 sq ft bungalow in the Richmond neighborhood of Portland. I paid cash for it, in the low 300's. I am looking forward to gaining as much experience as possible and a few bucks. ;)

I really love talking shop with other Portlanders. So hit me up. 

Neil

This dude is not for real.

Thank you Jeannette. 

Why do you say "I don't know why you want to start flipping"? 

I want to flip because I am passionate about it and really want to do it. I want to see properties go from nothing to something. It will be great satisfaction to me seeing a family move into a rehabbed property and enjoy it.  Obviously, there are a million easier ways to make money but this is what really gets me excited. My opinion of most that try and fail at wholesaling and flipping is that these are mostly people who want to get in on real estate investing because it's a way for people that don't have much going for them to take a shot at making some money. You don't need a formal education to do it and you can start a business tomorrow. These people are missing the most important ingredient for Real Estate investing which is passion and probably money. It' a grinder type business that will beat you down, if you don't love it you won't last. 

Also, I will never understand why people advise not to worry about a real estate license. This is lazy. It's 150 hours and $500. Not much. With a license, you have full access to MLS and lock boxes for looking inside properties. No agent fees on flips. You can write offers yourself. Seems like a no brainer. I am playing the long game here with this and my opinion is you should get one.

Happy Thanksgiving! 

Can anyone give me their experience at an auction in either Washington or Multnomah Counties. Either Trustee, Bank or County auctions. I am a cash buyer so an auction seems like an advantage for me. I have no idea what to expect or if its even worth my time. 

Any information would be greatly appreciated.

Thanks,
Neil

Can anyone give me their experience at an auction in either Washington or Multnomah Counties. Either Trustee, Bank or County auctions. I am a cash buyer so an auction seems like an advantage for me. I have no idea what to expect or if its even worth my time. 

Any information would be greatly appreciated.

Thanks,
Neil