All Forum Posts by: Nick S.

few questions from me regarding the 3 options example specifically regarding the #'s. how do you do the math to come up with

1) 1556/mo

2) the 3 different purchase price options (300, 320, 350)

3) the varying interest rates. i'm guessing the interest rate was calculated to keep the 1556/mo consistent?

thanks to anyone that can help. i'm attempting to structure my 1st seller financed deal and present options, but i'm struggling with how to come up with the numbers. i'm looking at a property that is worth about 100k in its present date and needs about 60k of work.
 

@Zack Karp really appreciate the quick but thorough response. i've submitted numerous mortgage loan applications tonight. if you're open to connecting on wednesday. shoot me a pm. i'd like to decide on a lender by end of day wed.

as for the rehab, luckily my dad's a general contractor so we feel fairly confident that 35k in rehab is overbudgeting....hopefully

hi everyone,

after 2 years, i finally got an sfr under contract. the 1st one i had to back out due to the home inspection and after a year of burnout, i've been taking advantage of these work from home times to find another.

i'll provide as much relevant numbers as possible. i also wouldn't mind a breakdown of this deal.

below are deal info and closing cost breakdown

purchase price: 185k in a really nice city in a very good school district, but the neighborhood is way under the median

repair: 35k

arv: 260-275k (my calculations were more conservative at 260)

average rent is: $2k, but i haven't yet decided whether to 2 year live in flip or brrrr. i'm leaning towards the 2 year live in flip so i can put down 10% and pay cash on the rehab

closing cost breakdown from initial lender who helped me with my preapproval. i plan to talk to a few lenders on wednesday

A: loan costs (application and lender fees): 1.3k

B: services you cannot shop for (appraisal fee, credit fee, other): 400

C: service you can shop for (this is where it gets really muddy for me): 4k

1) admin fee: 100

2) chain of title: 250

3) closing protection letter, electronic doc fee: 100

4) lender's endorsements (what the heck is this?): 350

5) lender's title insurance: 1.5k

6) settlement fee (what the heck is this?): 1.2k

7) title binder commitment, title search abstract, title update fee, wire transfer fee: 550

D: A+B+C= 5.7k

E, F, G (these i get): government fees, prepaids, escrow payment at closing. taxes are extremely high here in IL. they included a homeowner's insurance premium. should i shop for this myself? they estimated 133 a month

H: owner's title insurance (optional): 520 (should i be adding this?)

would appreciate any and all feedback soon to help me in my mortgage lender shopping conversations for wednesday

thanks!

hopefully i'm allowed to bump this thread, but looking for more opinions. thanks

love that quote. my opportunity fund is in one of my high yield savings. i have separate retirement accounts (through work and ira), separate taxable accounts (stocks/index funds), separate emergency fund, and a separate opportunity fund for things i can use if i want to buy real estate, fund one of my side hustles, buy stocks/index funds if the market crashes, use for vacation, etc. i keep this fund separate from my emergency fund both in high yield savings accounts. i need my opportunity and emergency funds to be liquid so i don't mind only getting a 2.xx% rate. happy to discuss further as personal financing is one of my big passions. hope that helps.

i'm still looking to buy my first property and take advantage of my dad being a general contractor. for me it's to learn. if i lose money, i'm ok with it because i've stalled for too long because i've been afraid to lose money. i've now gotten the courage to jump in because i'm in a much better spot financially having no debt, a nice income, and an opportunity fund that keeps growing. i've passed on so many opportunities in the past that i just want to learn. eventually i want to use this as a "passive" income stream while being able to flip as well. 

right, what i'll do is i'll look at the prices of the surrounding houses using zillow, but then i'll also type in the address on the county website and they provide an "estimated property value" of the specific house. as i said, it rarely matches what zillow's estimate is, but i'm wondering if this estimated property value is a better, more accurate value of the house.

hi all, as i'm weeding out properties, i started adding a new tactic to estimate property value besides zillow, which i know isn't always accurate. 

i noticed that when i go to the county site that the property is located in, there is an "estimated property value", which rarely matches what zillow/redfin say. it's under a section called "tax year 2018 assessed value"

what should i make of this? is this a better way to estimate value?

thanks!

info sent, thanks!

really good point. unless i go to the boonies, i don't think i've yet to find a property that fits perfectly within these rules/guidelines. my own comps were based on surrounding areas for similar sq ft, br, ba, etc and comps are closer to 240k. property taxes should be around $6k. i haven't heard of that $25k+ generally means it could be a better flip.

after living in this for at least a year or two, i'd probably prioritize flipping this over renting, but open to both as exit strategies. i assume no appreciation will happen.