All Forum Posts by: Account Closed

Thanks for the information guys! I'm new to BP and it's amazing to see how many people are willing to reach out with clear, concise and extremely helpful information.

@Ariel Salvaro your timeline made things crystal clear in my mind, and will become part of the guide that I am building for myself. It sounds like you guys create solid relationships with your clients by establishing their goals and deciding how you can help them to achieve those goals. I hope to find some quality HMLs like that here in in San Diego.

@Bruce May I will definitely be contacting you in the near future as I wind down on my initial learning /planning phase and begin to get myself out there!

Thanks @Justin R. and @Sean Walton for the great advice. Sounds like the deal is to basically get the ball rolling ahead of time by meeting with and networking with several lenders while figuring out how each particular lender functions. Then, when the deal is found, you already have a foot in the door. I will definitely be going to a couple of events in the near future.

@Lee Ripma I didn't realize that some would require you to hold the title in an LLC. Knowing this may save me a lot of time in the future! Will definitely PM you by tomorrow when I get more time.

@Bob Okenwa 

Thanks for the information! I've seriously considered leaving San Diego for some time to try to find a more beginner-friendly market, but I'm not sure if I'd be ready to leave my friends, family, hobbies and job behind. I will definitely reach out to a HML prior to beginning the process and see if I can get any initial pre-approval out of the way. I wasn't sure if they would even talk to me without bringing some kind of deal, but it sounds like contacting a few could help and certainly wouldn't hurt!

Hi All,

I am an aspiring real-estate investor from San Diego, and after spending several months in the research phase, I have come to the conclusion that a buy-and-hold strategy for cash flow is going to be extremely hard to implement in the area given the insanely low cap rates and CCR. To put it into perspective, the house next door sold for over $800k and the renters were paying just under $3k a month in rent. This is not an exception to the rule by any means.

As a result, I have come to the conclusion that I will try to flip my first few homes to take advantage of the fact that San Diegans are willing to pay a premium for a turn key house and often avoid homes that need a lot of initial rehab. This will also be an amazing opportunity to learn the rehab portion of my future buy-and-holds.

I am in the later stages of building a step-by-step guide for myself on the process that I *expect* to take in my rehabbing journey and I am having trouble wrapping my mind around the financing part. It seems pretty obvious to me that I will need to use hard money at this point, but when can I expect to secure this money?

Common sense as well as every book / blog / forum post that I have read says that you should secure your financing before making an offer on a property, but this seems backwards for hard money, as the lender wants to see your investment before lending out any money.

Can anyone shed light on this part of the process? Would I expect to make an offer on a property, put in a financing contingency assuming that it is accepted, and then find a hard-money lender? Or would I find a property that I think is a great deal, put together an analysis on the property, and then propose it to the hard-money lender, hoping that the property doesn't get snatched up from under me? Or do I need to somehow build a relationship with several hard-money lenders before even looking, increasing the odds that they will lend me money once I find something?

Thanks in advance!