All Forum Posts by: Nicholas Burch

Last time I checked, Rochester is just as much of a gold mine as Buffalo, NY. IE low entry barrier/emerging market. I am an agent in Buffalo, so I am not familiar with the Rochestor market. I suggest you interview a couple of agents in your area and find one that can provide the most value.

Here are some things to evaluate:

Do they have a portfolio themselves?

Are they impossible to reach? IE do they turn their phones off after 5 pm and do not answer on the weekends?

Do they understand the needs of an investor?

For those of you who own an Investment firm, how did you start the firm? ie how did you get that first million-dollar deal?

The best deals that I come across have come from investment associates affiliated with investing firms. The best way in my opinion to find them is on Linkedin, they are constantly posting their deals.

Secondly, wholesalers. I've come across some experienced wholesalers on Facebook who sends me deals as well, you can also join buy and sell groups in the areas you are interested in.

I believe other commentators provided some articulate info regarding the situation. The only thing I will tell you is this: buyers' market or seller's market, the house will be sold at the price people are willing to pay for it.

From a RE agent perspective, I can tell you that people who go around touting it's a buyer's market and you won't be able to make money are nonsensical. It's a buyer's market in the sense that there are more options available. Yes, financing is expensive, but that is why we have a god given tool called refinancing. In my opinion, you should be really worried about a 7.5% interest rate when you pay millions in interest from your primary residence or portfolio.

Let's say your property sells at your projected $279,000 with a 20% downpayment at 7.5% interest 30-year ARM with no HOA fees and PMI. The buyer's monthly payment is approximately $1,933. Run the same scenario at 6% interest their payment is approximately $1,710. If the buyer loves the finishes you put on the property, the location, and they are planning to make it their primary residence to support or raise their family. Do you think they are going to be stuck on paying $200 more because they bought it in January 2023?

I suggest you read ''the book on flipping houses'' by Jeremy Scott, a BP author, and respected house flipper. This will help fill in some gaps. It gave me a lot of insight into house flipping mechanics.

Quote from @Jeff S.:

Don’t present this deal to an investor, @Tiffany Murokozi. You will discredit yourself.

If you add the purchase price to the rehab estimate and divide that total by your ARV, you get ($215.8k + $40k)/$300k = 85%. 85% is where a flip will break even, so on its face alone, this is a lousy deal and I would end my evaluation there. Here's why …

You are missing several important expenses in your calculation. Here is a more detailed estimate assuming a 6-month flip, 90% LTC hard money loan, and 5% sales commission (click on the image to enlarge it) ...

Though for higher ARV properties we use 75%, no flipper should consider this deal for more than 70% or $170k, as @Parmesh P.  correctly calculated. Here the rehabber will earn around 16% of the ARV, which we would consider a fair deal. See below.

Even if it were correct, your $20k estimate is only 6.6% of the ARV and way too little for the time and expenses involved. Who would take that risk for such a small profit? No lender should loan on it. And obviously, I'm accepting your numbers as-is. A wise rehabber and HML would want to confirm them.

Your local friendly hard money lender will usually have a spreadsheet they will provide for free that will help you evaluate your deals. Better if you write one yourself so you know what's in it. I get many emails from wholesalers who don’t have a clue how to evaluate a property. This is one of the first skills you should learn if you want anyone to take your deals seriously.  Good luck to you.

Last, I don’t understand why someone posts to a public message board offering private advice. If you have something constructive to add, @Nicholas Burch, why don’t you post it here so it can withstand public scrutiny? Maybe we will all learn from it.

 I left that comment because I prefer to talk on the phone and gather as much information as possible, rather than going back and fourth on this forum or my message box. See reply Tiffany.

Hey Tiffany,

Dm me, I may be able to provide some insight.

I am a RE agent and I use a personal account. I joined my local for sale and rent group, I have no problems posting my listings. In addition to that, my account is connected to Meta Business Suite. 

Not sure if this helps, but I am still able to operate as a business without being labeled as a business account!

Hey Ace,

First of all-Shoutout to dreamville(aka Fayetteville, NC) my father was stationed at Bragg for 10+ years.

Second-The refinance period is typically dependent on the lender. For example, a VA loan can be refinanced after you have made 6 consecutive payments. A non-QM lender who tailors their mortgage products for investors may be more lenient to a quick cash-out refi.

Third-If you need a lender who can provide refinancing DM me, I will send you my recommendations.

Didn't realize I was underselling myself there! Thanks for the tip.

What do you reckon is the typical payout for all team members? Per deal basis or Annual NOI? I can see how you can pay your employees after refinancing or HELOC an investment or flip. But, those payouts can take half a year or more depending on equity build-up and available refinance products.