All Forum Posts by: Patrick Wheeler

Hey Everyone,

I have a flip opportunity under contract in Stoughton, MA that I am looking to hopefully receive some help in getting the acquisition financed. This will be my third rehab project, so I have been able to establish a pretty solid team for what I am doing.

Here are the details regarding the flip:

Asking Price: $199,000
Closing Date: July 31, 2017
Non-Refundable EMD: $10,000
Potential Profit: $40,042

Projected Resale Price: $400,000
Estimated Net Livable Sq Ft (per public record): 1,500
Estimated Construction Cost: $115,000
Anticipated Project Duration: 6 months

Acquisition Costs (attorney, recording, title exam, insurance): $8,750

Title Insurance: $833

Resale Costs $25,074 (I am a real estate agent so I will be selling the property at 4%, saving a significant amount here.)
Attorney Fees (P&S): $1,750
Broker Commission %: 5.00%
Broker Commission $: $20,000
Customary Gov't Recording Fees: $750
Additional Closing Fees: $750
Transfer Tax (based on ARV): $1,824

Financing Costs $8,001 (I will most likely be going hard money at 12%/3 points, which is based on previous use of this lender, so this cost will be higher.)
Borrowing Assumptions
Points: 0.50%
Interest: 6.25%
Max Total LTV per ARV or Appraisal: 85%
Max LTV of Purchase Price: 75%
% of Construction Budget Funded: 100%

Operating Costs (taxes, insurance, utilities): $3,300

If you have any questions, please do not hesitate to ask. I will answer all questions.

@Mike Abramowitz Not yet south of Boston. In that area I'm mostly looking for rehabs and a house hack. The two BRRR deals I have done were in Mattapan and Roxbury.

Always looking to connect! Send me a pm if you would like.

@Taylor Lydon South of Boston will at least be easier to find the 1% rule than north of Boston. I'm also focusing on south of Boston. You can still find 1% properties in most towns, it's just that much harder these days, Gotta get creative and hustle. It's also more difficult to find turnkey properties than say going after BRRR opportunities.

@David Santore I would probably go the route of trying to find their best contact number and give them a call. Just the way it is these days. @Jack Henry has a great suggestion referencing trying white pages. I can also try looking for you if you have the owner's name, using People Smart and Intellius. These are a couple paid services I was using for a while when I was working for a broker.

Let me know if you want me to take a look. Just takes a couple minutes!

@Euclides Semedo Welcome to BP! Make sure you stay active in the forums and check out some of the many local REI groups.

If you are looking for a book related to finances and money mindset, The Secrets of the Millionaire Mind has been mentioned a few times on the podcast. You can also search BP for numerous posts about the best books for new investors to read.

As mentioned, it will be tough to find solid buy and hold deals in East Boston, especially Eagle Hill. Developers have already taken advantage of most of the opportunities there. However, there should still be some opportunity to get into Chelsea before it's too late.

Where are your current properties located exactly? Why not continue to buy in those areas instead of considering shifting focus closer to the city?

@Greg Alway It really shouldn't take that long. If you were asking these realtors for yourself, just move on to the next if they are going to make it seem like more of a hassle than it really is.

Some things to automate are filling out all the generic areas of offers/checks, then scan a copy so you can print the same document each time then fill in the areas that will vary per offer. When I was writing offers for myself, it would take me no more than 5 minutes.

@Zach White Welcome to BP! I live in Dedham as well. Feel free to reach out if you ever want to get together and talk real estate!

Welcome to BP @Courtney Park! Make sure to check out some local meetup groups and stay active in the forums.

@Jeff B. @Pearce G. Thank you for the replies. Looks like I will be chalking it up to a lesson learned.