All Forum Posts by: Mike V.

Jeff,
This would have been a flip. ARV 150k, verbal agreement at 80K, needed about 20K in rehab so another 10-20K assessment would have wiped me out.
I agree that $750/mo is insane for that price point condo but I think thats one of the reasons the ARV was so low in that building. My monthly payment would have been less than my HOA fee.

Rich,
1970 mustang sportsroof. I rebuilt everything mechanical on it, drove the tires off of it then sold it to focus on rehabbing (and kids). I absolutely love cars but love making money even more.

1. What is the average purchase price of the flips or rehabs you're buying? 75K
2. What is your average time from purchase to sale on homes? 105 days
3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ? Getting harder to come by.
4. What % of the properties are financed with borrowed funds? 100%
5. If you had more funds available at EXORBITANT rates, would you purchase more properties? Not as a part time investor but definately as a full timer.
6. On financed properties, are you paying interest, sharing a % of profits or both? Paying interest.
7. How many properties have you turned in last 18 months? 4
8. What has been your biggest concern or problem with your process? Finding good enough deals in a small farm area - just need more time to expand farm area.

My reply was based on my current status - part time investor with more limits on time than money. Looking forward several years when I am doing this full time and have more time to do many more deals I could see agreeing to any terms if it meant another deal on the books. Right now I have cash and conventional credit to handle the deals that I can set aside time for.

Just a little more on HOAs. The first and last condo I looked at buying had HOA fees of $725/mo. Wait thats not the worst. Earlier in the year they had had a $12,000 special assessment to address some HVAC issues (it was a high rise). The manager played it off by saying it wasn't that big of a deal since he gave the owners 4 months to pay it. After some prying he also mentioned they would have another sizeable assessment for some much needed elevator upgrades. I passed on what at first looked like a no brainer deal.

A

Happy Birthday Josh, enjoy your day!

Tim, so now that the gig is up can you tell us where you have been investing? Also, do you move to the area your have chosen next or do you do this remotely?
Also, thanks for all you contribute to the site.

Hey Chris,
Welcome to the site. We need to get together sometime, I'd love to see what your doing here in STL. I just put one flip on the market last week and have it under contract and another on the market yesterday. Nothing in the works so I'm looking hard.

Another option to consider is finding a local bank that will do a construction loan. Here is my latest example - I got an accepted contract on a home for 24K and wrote up a 48K rehab budget. The appraiser took the budget and looked at the house and came back with an after repair value of 120K. The bank loans me 80% of the 24 plus 100% of the 48K intersest only for up to a year. When completed I have the option of refinancing to a standard loan up to 75% of the original appraisal with the same bank which would be 90K.
This would cover everything including my closing cost and carrying costs. On this particular project I put it up for sale and will just pay off the loan. One side benefit is come tax time the title company dispersing the construction funds via a voucher system sends out 1099s to all the contractors for me.