All Forum Posts by: Obed Calixte

Understand what documents are needed to qualify for a hard money loan. This can be as simple as having an LLC and EIN to having X months of bank statements to show funds are seasoned. You do not want to wait until you need a hard money to begin gathering the necessary documents.

Understand reserve requirements - how much cash do you need to show proof of access to.

Understand how to read a term sheet - what do the terms mean. Can you calculate the numbers to ensure they are correct

33604 is another zip code in Tampa.

I cant answer you're in depth questions but for crime information, you can use either of the below to get an overview. It will give you an objective answer:

https://crimegrade.org/

https://communitycrimemap.com/

What are you looking to learn about the areas you mentioned?

The experience didn't go as planned, but one key thing that stood out in your post is that you realized that you do bring something to table.

Focus on your energy on what you do bring to the table and use that as your competitive advantage to grow.

What are the issues with the home?  And who do you envision your target buyer to be?

If you envision it to be for move in ready buyer- You would need to determine what the costs would be to repair the property and how that would impact the sale value.

If you envision it for a cash buyer - It may not be worthwhile to do anything to the property

If you envision it for a savvy owner occupied buyer - They may be able to qualify and use a Conventional Homestyle Loan or FHA 203K loan to wrap the rehab costs into their mortgage.

Just some thoughts. 

Is holding the property as a rental viable?

How long are similar properties sitting on the market? What are other sellers offering to get deals done (rate buydown, money towards closing costs, home warranties etc)? 

Walk similar homes nearby to see what they are doing or not doing.  

If not doing already, gather feedback from potential buyers. Use that to identify what their biggest holdback is. 

Has your contractor walked the property? That would be your best source of info.

Negative on qualifying for a 1031 Exchange but congrats on getting a check at closing for your first flip!

1 - Make more offers.

2 - Get better at estimating rehabs. Either yourself, or pay a GC a small amount to give you a bid prior to submitting your offer. That will reduce your need to renegotiate on price after going under contract

3 - Use a local Title company net seller sheet to calculate estimated closing costs. 

4 - Find a hard money lender that can close quickly. 

5 - Practice patience. Home values are moderating, so it will mean being even more conservative on numbers. The right deal will come.