All Forum Posts by: Rudy Gonzales

Hey Mike Duran - I'm also a newer member to BP. I just did a deal in W Plano on Dartmouth. Welcome to the club :)

Hey Michael Attaway - Welcome to BP! Looks like we have some mutual interest! I live in Keller but am very real estate active all over the DFW area. Lets connect!

You may want to look a potential flip like this:

Buy - 55k
Fix - 20k
ARV -100k

Cash-
55k -Buy
20k -Repairs
5k -Closing
80k -All in Cash
100k -Sell
20k -Profit

Hard Money - Assuming they'll lend 70% of the ARV
55k -Buy
20k -Repairs
5k -Closing
80k -All in
70k - Loan Amount (70% of the ARV)
10k -Cash to close
15k -Profit (after 5k lender fees)

Most buyers will use cash because they see 20k (cash) vs 15k (HM) profit. However if you leveraged your cash with HM you could have 3-4 projects going simultaneously. In this EXAMPLE for every 10k out you have the potential to make 15k thus 40k out = 60k return. Even if you bust on 1 of them, you still come out way ahead of using cash. With 110k cash you could do a larger flip perhaps. You probably already know this stuff but before you pull the trigger run your #'s in a worst case scenario. Hope this helps @Wade Guy!

Paul Zofsak - David hit the nail on the head. What are you doing with this property? Flipping it? Gonna live in it? Put a tenant in it?

@LEON GOUSMAN - Refi qualifications may differ there in New London, however when I refi a buyer here in Dallas TX he needs a 680 credit score, 45% Debt to income ratio or lower, & at least 6 months payments for each property owned in reserve.

Welcome Jeff! I too live in the DFW area (Keller) and would like to connect to you and your business partner! I've been a spectator here on BP for a while now and have learned some GREAT info from some of the senior members!

Welcome to BP Peter! I too am a newbie to this site and blown away by the wealth of knowledge from some of the senior memebers. I've also been connecting with other local DFW Investors! Lets connect!

I'm excited to be part of BP as I've found value in many of the topics discussed here. That being said this is my 1st post. I have completed a handful of transactions thus far, however I find that most investors have their own unique way of determining ARV. I specialize in distressed residential 1-4 units in the Dallas market. In your opinion, whats the best way to determine ARV?