All Forum Posts by: Redgy Saint-Germain

I would like to compare projected materials cost vs actual cost for my current 203k renovation to aid me with my future offers and estimating ARVs. I feel nervous about asking my contractor for receipts because I wouldnt him to think I don't trust him but I also need to make sure the budget is well spent. 

Am I overthinking this ?

Redgy

@Serena Pedersen I am glad you`ve found the post helpful. I`ve learned so much from BP it`s about time I give something back. Yes,it`s okay to be scared, channel your fear and use it to your advantage, I promise you it gets better. I was nervous and scared at first but I said to myself I can only fail if I stop trying something will pan out eventually. I had over a dozen offers rejected but I am so happy they did. You have to analyze quite a few deals to establish your criteria, before you know it, you`ll see a property and without using the BRRRR calculator you'll be able to estimate your cash flow. Its a really good feeling once you get there. You will learn so much by going through the process on your first deal. It may be a painful process but it`s worth it. My goal is to close 5 deals by December. I can answer any questions you may have here or you can PM me if you prefer. Good Luck

Side note I just sent an offer on a condo today :) 

Redgy

That makes sense. Thanks for the clarification. 

Redgy

@Michael Cohen Thanks for the info. I got confused a bit because the seller of the property had about 19k left in their escrow account at closing time from a 203k loan for the same property. They did not finish the work and I ended up buying the property with one APT half way done because according to them no contractor was willing to finish the work for nineteen thousand dollars. I may be wrong but I believe that money was returned to them on closing day.

Redgy

@Benn Albrecht Thanks for the quick response, I believe I should have 10k or more left over from the contingency funds.

Do you know whether its an automatic process or will I have to ask the lender to do so ?

Redgy

Hello guys,

I am a newbie here and seeking for some answers regarding an FHA loan. I bought a property using a 203k rehab loan and I was wondering about what will happen if you have reno money left over in your escrow account when you refinance your property?

Redgy

@Tony Wooldridge Thanks , I always appreciate constructive feedback. I am hoping that the BP community can be my second pair of eyes in my REI ventures. Feel free to leave me any feedback, thanks again. Moving forward I will be more active on BP with more questions and hopefully I can help others.

Hello BP,

I am not a big writer but I felt compelled to share my story as it may help other people close their first deal. I joined BP back on January of this year because I was looking for a passive income and didn’t know what represented a good real estate deal and how to crunch numbers. I want to thank Brandon and Josh and the whole BP community for this wonderful website with tons of free contents. I am proud to say that BP is the reason I was able to close my first deal.

I was clueless about real estate, I was so scared to make a move prior to BP because I was afraid I may lose my money and not make any profits. After watching a video of Brandon on how to analyze a rental property I went on MLS and using BP`s rental calculator I started analyzing every deal in my neighborhood for a whole week. After 25+ analysis I started to establish a baseline on what numbers I was comfortable with. As I analyzed more deals I got more comfortable with the numbers and one day I have decided to call a few banks to know if I was eligible for a loan. Four out of six banks told me I didn't have enough money to do what I needed to do because over 25K was needed in my savings to start investing if I wanted to buy a house over 100k. After the fourth bank, I was discouraged but I was determined to get a deal no matter what. The fifth bank which I was referred to by my realtor gave me a pre-approval letter for 350k using a FHA loan with 3.5% down.

I met my realtor on Jan 23rd of this year and we`ve best friends 😉 ever since. I have met my contractor, my lawyer and my mortgage broker through him and closed my first Duplex deal with him on 4/28.

My Numbers

Number of deals analysis before closing 40+

Duplex Listing price 259k MLS

Purchase price 252K including 7k closing costs

Inspection 525$ (out of pocket)

HUD Consultant fee 825 $ (out of pocket)

House appraisal 613$ (Out of pocket)

Reno budget 66K + 10% contingency

2017 Property Tax $4554.70

ARV 380K

Equity going into the deal 53K

I will share the pictures later when the rehab is done. I have to say I learned so much on my first deal that I have decided to help my GF buy her first property, long story short we are closing on that property on 6/15.

To all the newbies out there, it`s okay to be scared and feel uneasy, you just need to jump in and make your first deal. You will feel more comfortable as you analyze more deals. Stop living in fear, it gets better I promise, just make sure you run your numbers right.

Again, thank you Brandon and Josh for helping me close my first deal. My property will be ready for tenants on July 1st.

Redgy