All Forum Posts by: Richard Jeffries

Welcome to BP glad to have you. So do you have a market that you're going to be focusing on yet?

Of course it has things to do with profit margins, resale, and contingencies as well

It also is loosely derived from underwriting guidelines. 70% is the amount that a lot of lenders will lend against an investment property. So the if you spend less that 70% on the purchase, rehab, holding and closing costs you can get all of your cash out in a refinance.

I would have to agree with Kenneth. A partially finished home would not be worth the work done to it and the purchase price on the market. Tripple check your numbers before even putting in a offer, and make sure you budget a contingency. Also you would want to avoid doing project that would cost you more than 65-70% ARV. That way you have your profit cushion to fall on even after you use your contingency

Do your due diligence, if the numbers don't work then walk away. Put your best bid forwards and do it often. You'll  get a deal eventually.

Keep at it!

You definitely can do both. It doesn't violate any finra rules. Just be careful not to blur the line between clients and real estate investing.

Cameron i'd have to agree with Gerardo on this one. Go with the option that provides the best ROI. Also tripple check your numbers. Make sure you have the correct ARV, rehab cost, and make sure that the property doesn't have any liens on it because a surprise can ruin a deal and an investor if they aren't prepared.

First of Tawanna welcome to BP as you've already figuredout there is a wealth of knowledge here all at your fingertips. Beautiful thing is that it is available before, during and after your deal. Regarding lenders, ask other investors in the area, and devolop a relationship with someone with some lending experience. They often could look at what you have going on and help you get prequalified.

Feel free to reach out if you have any questions or want to bounce around some ideas.

Best of Luck

Well if you gave an offer that could be as high as 171k and you got it for less than that (granted only 500) it sounds like you got the property that you wanted for a price you willing to pay.

What it sounds like is they will place a lien on the property and give you a loan for a set period of time. Probably  in hopes that at the end of the loan term you now have the equity free in the property. If you don't have the equity available they will ask for the cash payment or start the process to close on the house. But that's just what it sounds like to me