All Forum Posts by: Patrick Daniel

Can you hire an insured contractor from a town over that is larger? 

If not, I would check if there are umbrella policies available that you can purchase that would cover your risk.

Depending on the city/county, you will have to get the work that has been completed so far inspected to see if it can stay, and then you will likely have to pay a permitting fee on top of what additional permits cost for the rest of the work to finish the project. Some areas will require engineering drawings as well. I would call the city/county permitting office and a trusted contractor in your area.

Lead Propeller and Flip Sheets (https://www.houseflippingspreadsheet.com/) would both be fantastic! 

Maybe a discount on Lead Propeller websites for pro members? It would make me want to make the jump to PRO for sure!

@Jason Howell I don't know if I would say it relies on appreciation as much as it relies on value-add through rehab/sweat equity. That is a form of appreciation, but not in the classical sense, I suppose. Generally in the deals I have seen that are great BRRR opportunities will still leave room from cash-flow on the other end of the refinance, but that is very market dependent.

The number there make me uncomfortable. There is a lot of dependence on appreciation rather than cash-flow.

The main things I would consider if this was my deal would be: How long do I plan on owning, what exit strategies do I have in the even I need to sell before that? 

Are you talking about doing a double close? If that is the case, then yes, it is definitely possible if the numbers work. 

But if you are talking about assigning the property, then that is a much stickier situation. Most of the time (99%) the seller has an exclusive contract with the listing agent stating that no one else is allowed to market the property. 

It all depends on a couple of things... Is the home that you are purchasing currently financed? If so, was it FHA, VA, Conventional? There are restrictions on the amount that you can sell a home for above purchase price with an FHA loan.

It also depends on your buyer's financing. I would ensure your buyer is able to get confirmation from their lender that it is not a disqualification so it doesn't creep up during underwriting.

Seems like it could get a little questionable, but it likely depends on state as well as federal constraints. I am following though to see if anyone has been able to pull this off! Great question!

Are you working with a GC or subcontracting all yourself? If you are going the GC route, explain to them the draw schedule and that you will give them 10% extra of your profit at close if they are willing to get paid as you receive your draws. It may cost you more this way, but its better than no deal if the numbers still work.

With my lender, I am usually able to get paid within 48 hours of work portions being completed. So if you are able to front 50% up front, then you could get your contractors to accept final payments within 5 business days of work completion. This is what I have been doing and it works great.

Are you part of a REIA? Normally tapping into your network of fellow investors will help you get an idea of who is legit or not.

Know what questions to ask. Ask to see the contract between themselves and the originating seller, even if it is a double close.

Make sure if there is any EMD, that it is made to a title company/escrow account and not directly to the wholesaler.

Go over closing costs and exactly what will be paid. On my last deal, I had a wholesaler try to slip in their closing costs for a double close in a very fishy way. It almost made the deal fall through the day of closing, but I was able argue and use the contract that I signed to make sure it got taken off. Saved me nearly $3k.

Reach out if you have any more questions!