All Forum Posts by: Preston Quinn

I’ve been looking for the perfect brrr deal for 14 months. It took about 15 offers. I have 3 under contract. 2 of the 3 I have under contract fell in my lap. The other came from mls with title issues and I was willing to offer and wait for them to sort out the issues.  One of which isn’t a homerun. But it’ll give me $150 positive CF with no money in the deal. The other two are solid doubles and triples. Giving me 5-10k cash out and 200-250 CF/door

Can I ask what your buying criteria is?

Does your county/city have a GIS website? For my market I simply google “lynchburg city gis” when/if you open it you should be able to find a place to search by address. That will give you a lot of information. Our gis website gives us the owners name and address. (You can look here to see if it is bank owned or owned by an individual or business etc). It also tells me all the transactions that have taken place on this property, and how much it sold for on each transaction. It’ll tell me how many bedrooms, sq ft, bedrooms, heat source, shingle type, and a few other fun facts. 

I would start here, if you don’t have a local gis call the county/city real estate dept and ask them how you can find them owner of this property.  

Wow. $10k. That’s insane. 

@Anthony Hollis

Can you close on the deal? Then list it on mls as agent/seller??

This is what happens mostly here in va. I’m sure there are some that do it the way you’re wanting to. But I’d be hesitant to risk my livelihood for some quick cash.

@Jermaine Mitchell

Are you using a realtor? If so, I’d rely heavily on him/her for this.

If not, speak with your loan officer, they will have standards that must be met. Start the conversation with these people. See where it takes you. If I had to guess it’ll answer your questions.

What are the numbers on this property, if you don’t mind me asking.

@Jeff Cagle

This is why we read so many stories of people getting ripped off by contractors. I can’t for the life of me understand what makes people think they can just hand someone this amount of money and there not be any issues. You lose so much leverage over the contractor it’s not even funny. I have NEVER paid up front. I flip and I own a contracting business. I Never ask for money up front and I never pay up front. What happens when something is done wrong and they’ve already been paid? You think a piece of paper or a handshake will force the contractor to go in their pockets to fix it?? Uh no. What happens if something is done wrong and you haven’t paid yet? You can bet your a** they gonna fix it because you have the power of leverage with the money, they will spend the extra on labor to correct any issues. If your contractor can’t front the money for the labor to make it to the next draw, he isn’t a contractor, he’s a jack leg. My honest opinion.

@Tyler Kennedy

Thanks for responding. It’s hard to tell in this area on Zillow. It’s a small area. 2 streets over houses are selling for 3 times as much. Nothing has sold in this immediate area in the last few months that is comparable and the ones that sold last were in 2017. And the pictures are not there so I can’t tell what the interior looks like. I’ve never used Redfin, I’ll check it out. I’m trying to be logical on what it’d appraise for after Reno. I might just pull the trigger and see what happens. Worse case I’ll have 20% of whatever it’s worth. I know it’s worth what they’re asking plus rehab. I’m just having a hard time convincing myself it’ll appraise 20-30% over my “all in cost”.

I am waiting for a realtor friend of mine to do a market analysis for me. Suppose to have it back to me by tomorrow afternoon.

Thanks again.

Hey guys,

I am looking at a house in a lower income area in my hometown. Everyone (friends and family, typical naysayers) is telling me that those properties are depreciating.

From what I see on the city tax assessors website there has been an average 2.8%/year appreciation for the last 16 years (all the data I have on the website).

My question is this, do you pay attention to these numbers when you’re trying to determine if appreciation will be icing on the cake?

Thanks

@Tyler Holzer

If you do have your windows wrapped, do not call a contractor. Keep your eyes open for new construction where people are doing siding. Pull in and ask them if they do side work. You should be able to have the windows wrapped for no more than $80/window. If they say more than that. Go to the next job that’s got siding going up.

Now, in my opinion, If you ever plan on replacing the windows don’t pay to wrap them until you replace them. The metal won’t be saved and you’ll be paying to have them wrapped again.

If I wasn’t planning on replacing them, I’d have them painted and move on. I don’t see where wrapping them adds any value whatsoever.

I say this owning a siding and window business.

@Matthew Powell

I buy properties in my s-Corp (flips for now), but I have talked with my bank about another exit should I get stuck with a flip. I ask would I be able to refinance, get my money back after I have a tenant in the property. She said absolutely. Here's the catch, the PITI has to 70% or less of the rental income. Meaning, they will allow 70% of the monthly rent to delete the DTI that will show up on credit report.

If it's over 70% she will strongly suggest I leave money in the deal so it comes in at 70%. Anything over will be shown on my DTI. Anything under will be counted as income.

This bank is a local portfolio lender. They keep a-lot of their loans in house and don’t play by the same set of rules as the big banks.

I would strongly recommend that you find this type of bank in your market. I would also suggest you speak with your CPA and attorney to figure out what type of entity you should setup. From what I have seen, with this bank anyway, the loans in my business name are much less dependent on my finances. And more dependent on the properties ability to perform.

Message me if you want more details.