All Forum Posts by: Riley Smith

I have a property I’m looking at in Missouri that’s about 1,400sqft, and not sure the difference between a Cash and a Novation offer. 

Cash Offer

ARV $180,000 - $55,000(Rehab) - $14,400 (8% fees, CC, HC) - $40,000 (profit) = $70,600 MAO

Novation

ARV 180,000 x .95 =171,000 (EST. Sale Price

$171,000 - $55,000 (Rehab) - $13,680 (8% fees) - $40,000 (profit) = $62,320 MAO

From talking to other investors and doing research, typically a Novation allow more money to the seller, correct? 

Could someone let me know if this is accurate or not? And if not, what am I doing wrong? 

Thank you everyone! 

@Chris Seveney

Thanks for the response Chris! Yea most lenders have told me to build up capital which is what I have been doing for a while. It takes time to build 20% down plus extra costs and fees. I was hoping a lender could finance 100% of it plus the rehab.

Hey Matthew, I do not. It will be my first investment property. However, my wife and I bought our residential house about a year ago. There is not much equity to pull out due to only living in it for about a year. 

I am looking for a Hard Money Lender to fund my first fix and flip property. I do not have a specific property yet, but I am getting a head start. I do not have much capital for a 20% downpayment yet. Does anyone have any recommendations, thoughts, or tips? Thanks for the help, everyone!

Hey Oliver! I am trying to get into wholesaling as well and have done tons of research. I know wholesaling is a gray area. "...the wholesaler is a middleman who is paid for finding deals (although practicing real estate without a license is illegal in all 50 states...)" (How To Invest In Real Estate, BP Book). I am a new investor and a realtor and I know some realtors that strongly dislike wholesalers. Plus if you aren't upfront with many sellers they can become frustrated that you resold their property for a higher price. Since I am a realtor, I would have to disclose that. I guess it comes down to one's integrity and ethics. Hope this helps a little bit!

Thanks Nicholas! Closing costs are typical 2% of Purchase Price correct, give or take? How would I estimate the holding costs? 

Thanks for replying and giving me the advice! I am a realtor who wants to invest in real estate. I want to learn from others who have experience in investing. From my experience as a realtor and learning the investing side, I have realized many realtors lack the knowledge of investing and the numbers game. Many realtors try to get the 3% commission while realtors who invest can help sellers give more options to help them such as sub-to and other creative financing options. 

Thanks again Nathan! I appreciate the advice and your insight!

Hey guys, I have been practicing analyzing deals to fix and flip. In the book How to Invest in Real Estate it gives the formula 

ARV - Rehab - Fixed Costs - Desired Profit = MPP. When flipping what would be considered Fixed Costs? How would I estimate fixed costs? Thanks, everyone! I appreciate the help!

Hey guys! I want to invest in real estate and am looking for an investor I can help out and learn from in the Springfield, MO area. I am a local realtor which can give me an advantage in RE. Reach out if you need help with anything!

Hey guys! I have been learning the real estate game for a little over a year now. I am looking for someone in the Springfield, MO area who I can help and learn from. I am a local realtor and am looking to start investing in real estate! I am driven, hard-working, and motivated to learn and invest in a better future! Thank you!