All Forum Posts by: Pete Perez

Hello BPers,

I have been learning as much as I can from BP for the last 3 months and had started reading about real estate a few months before that. At this point I feel stagnant.

Over the last week I have been building my team of contacts to begin flipping houses here in Southern California (Inland Empire specifically). I have a investor-friendly realtor lined up who can help me estimate ARV of potential flips, made some wholesale contacts, made a deal analyzer for myself, and went to a real estate meeting for the first time last week. I can't seem to make the financing piece work. I don't have any family that will, or can invest with me, so I have been calling hard money lenders all day. None of them will lend to a first time investor with no money. All of the @Brandon Turner 's book on investing with low and no money down, but can't seem to make it work for me. I have a good paying job as an engineer, but just don't have the money saved up to invest on my own. Has anyone experienced this, and if so does anyone have any recommendations? I know its possible, but am just hitting the proverbial wall.

I really appreciate any feedback from the BP community. I don't want to give up on this, but just not sure how to proceed.

Thank you

Hello BPers,

I have been learning as much as I can from BP for the last 3 months and had started reading about real estate a few months before that. At this point I feel stagnant.

Over the last week I have been building my team of contacts to begin flipping houses here in Southern California (Inland Empire specifically). I have a investor-friendly realtor lined up who can help me estimate ARV of potential flips, made some wholesale contacts, made a deal analyzer for myself, and went to a real estate meeting for the first time last week. I can't seem to make the financing piece work. I don't have any family that will, or can invest with me, so I have been calling hard money lenders all day. None of them will lend to a first time investor with no money. All of the @Brandon Turner 's book on investing with low and no money down, but can't seem to make it work for me. I have a good paying job as an engineer, but just don't have the money saved up to invest on my own. Has anyone experienced this, and if so does anyone have any recommendations? I know its possible, but am just hitting the proverbial wall.

I really appreciate any feedback from the BP community. I don't want to give up on this, but just not sure how to proceed.

Thank you

Hello BPers,

I have been learning as much as I can from BP for the last 3 months and had started reading about real estate a few months before that. At this point I feel stagnant. 

Over the last week I have been building my team of contacts to begin flipping houses here in Southern California (Inland Empire specifically). I have a investor-friendly realtor lined up who can help me estimate ARV of potential flips, made some wholesale contacts, made a deal analyzer for myself, and went to a real estate meeting for the first time last week. I can't seem to make the financing piece work. I don't have any family that will, or can invest with me, so I have been calling hard money lenders all day. None of them will lend to a first time investor with no money. All of the HML I talked to want 30%-50% liquid reserves (which I respect as they would like to protect themselves from potential loss).

But I read @Brandon Turner 's book on investing with low and no money down, but can't seem to make it work for me. I have a good paying job as an engineer, but just don't have the money saved up to invest on my own. Has anyone experienced this, and if so does anyone have any recommendations? I know its possible, but am just hitting the proverbial wall. 

I really appreciate any feedback from the BP community. I don't want to give up on this, but just not sure how to proceed. 

Thank you

@Karen Margrave

Thank you for the heads up! I will try to avoid HML in that area.

Also the recommendations are greatly appreciated. 

@Joe Gigliello

Thanks for the advice, Joe. I was actually considering offering part of the profits to offset the risk involved for the HML. I unfortunately don't have family that is willing to invest with me, or partner on deals. I have explored that option at length.

I do however attend a local real estate meetup monthly, so I will try to find someone who'd like to partner with me there. Until then I will just have to keep calling hard money lenders and see if they are willing to take a chance on me. 

Do you know of any HML that lend to first time investors based on ARV? Any recommendations are greatly appreciated.

Thank you!

@Karen Margrave

I understand that their is risk and each lender evaluates that risk differently. I just needed clarification of the original question about LTV/ARV. And I'm aware of the point you made about how interest is paid. I have a whole list of questions I've made for myself that I must have answered before I can begin investing. To your point about not understanding all aspects of the deal, my thought is if I can explain the deal to my fiancé who has zero hours spent learning about this and she feels comfortable, then I have a good start to my knowledge.

I guess my next step is to keep looking for HML that will lend to newbies and based on ARV. I have a realtor that I have met with who can work with me on finding conservative ARVs for potential deals. But like you said the HML may have their own way of determining ARV so I guess that will come as I speak to more of them.

@Chad U.

I recently walked through my local home depot and could not believe the difference in price between engineered hardwood and actual hardwood. They unfortunately did not have an installed display to showcase the difference in look and feel between the too. 

In your experience is there a big difference? Would a typical first time home buyer be able to tell a noticeable  difference?

Thank you for your insight.

Pete

Hello BPers!

I tried searching the recent posts, but couldn't find this question and I am sure its an easy one to answer. I am switching my short term investment goal to fix and flips and have begun looking into hard money loans. 

My question is regarding the database of hard money lenders here on BP. Most of the advertised lending is 60-80% LTV. What exactly is the value they reference? Is this the value the county appraiser will give the property? The After repair value of the property? I have found only 2 lenders that explicitly market their loans as ARV loans.

1. The Norris Group

2. Rehab Loan Group

Both are based out of Riverside, CA. I read @Brandon Turner 's book on investing with low and no money down and he identified hard money as a potential source for no money down investment strategies. Is it very difficult to find hard money lenders to finance the purchase price and rehab costs of a flip? I understand it is risky for them, so how do newbie investors like me convince lenders to lend to us?

Thank you!

Pete Perez

@Chad U.

If I may ask. What type of flooring is that? I think it looks beautiful in that home.

@Mark Ferguson

Prior to watching the video I was curious why the rehab was so high. Then I saw the gutted house, and heard about the contractor problems. I am a newbie investor looking into fix and flips and this was an excellent resource. Thank you for posting it. 

Pete