All Forum Posts by: Max Biggar

You can do it, however the minimum short term rental is 90 days.

@Joey Hamaoui I got the property under contract first. It was a fsbo. Then I figured out how to finance it. 

@Rich Stancato agreed, market is tough right now. I am finishing up a 2nd flip as well that I actually got the same time as this one. I got both under contract the 1st day they went on the market. It's definitely an advantage when you know the area and exactly how much to pay so you can lock something up as soon as it hits the market. 

Thanks @Brandon Reed @Account Closed

Since I live in Atlantic Beach and know the area well I started analyzing the properties in my neighborhood. They are definitely on the higher priced side for flipping to start out but its the area I know. This property I remembered had an estate sale, so a few weeks later I thought "hey maybe they want to sell the house too". I typed up a letter saying I lived in the neighborhood and was interested in purchasing but when I went to slide it under the door they had already put up a fsbo sign that same day. I thought I was too late, but I called and did some relating with the seller and ended up getting it under contract anyway. 

I then asked my sister to be the investor and get the loan since she's also been wanting to get into real estate investing.  She lives out of town so she provided the money and I managed the project. We drew up a simple contract ( a must, even for family) which we had to refer back to a few times during some stressful parts. 

Cheers

Hello BP, Thanks for your support! I couldn't have done this or been motivated enough to do this without you! I have posted a few threads with questions throughout this process and finally have completed my first flip! I am on track with my goals and now have experience. And you can flip a house with no or low money down.

Purchase price: $300k

rehab: $55k

sold for : $420k

Profit after holding/closing costs: $35k (a little tighter than I'd like, but hey for my first one this ain't bad)

I got the property under contract, found an investor to take out a mortgage and pay for rehab, then I supervised the rehab and sold the property for a 50/50 split. I managed the process from start to finish and they provided the money.

My profit: $17.5k with very little out of pocket

on to the next...

Cheers!

-Max

thanks @Marvin McTaw and @Patrice Penda. Yes I can assign the contract and my concern is with my end buyer's lender not allowing that. 

I am working with my buyer to see if he will get a hardmoney loan for a discount in order to close quickly. 

If not, this is a property that I wouldn't mind owning. It is very close to my home and I have done 2 other flips on that street so if I need to use the hml myself and wait 60 days to sell to my buyer and he then backs out I would just do the work myself as originally planned. 

Hey BP thanks for taking the time to share your input. I am struggling to find out how to structure this deal that makes the most sense. 

I have a townhome (1 side of a duplex) under contract for $165k in Atlantic Beach FL. It needs $16k worth of work to have an ARV of $215k with a lot of appreciation upside.

Obviously I don't think there is enough equity to wholesale to a cash buyer at that price (If you want it though let me know). 

I would flip it myself or keep as a rental however I have 2 other flips going on and likely don't have the time or funds to take on another yet. 

I actually have a buyer that's interested in it as his primary home that he would basically house hack. He would need a loan however to purchase it from me and I'm not sure the best way to set this up.

Can I assign my contract over to him and will lenders then lend to him based on an assigned contract and how would I get paid? If so any recommendations on lenders?  (I am thinking the buyer will want a conventional loan and not hard money if possible)

would this be good for transactional lending? again I think the buyers lender would need to approve this.

How would I set up a simultaneous or double closing? Does anyone know lenders that would do this?

A last resort I guess would be to purchase it myself with hard money and then sell to my buyer 30 days later. Or make him get the hard money loan and then he can refi 6 months later. 

any recommendations or thoughts would be greatly appreciated. 

Cheers!

I also have the same situation happening now. I got one house under contract for a flip and am using a home reno loan, then I happened to get another house under contract (also a flip) and wouldn't be able to get approved for it and was also worried about getting a HML affecting my credit and first loan.

Not sure if this will work for you, but what I did is found someone I trusted (my sister), and had the sellers sell it to her instead. Then I signed a contract with my sister to split the flip profits 50/50. Basically partnered with her. She got the reno loan in her name and provided the funding, and I am running the flip project as she lives in a different city. We just closed on her loan a few days ago. I am supposed to close on my original deal next week (got delayed due to hurricane damage). 

Thanks Bill Walton She is hesitant on the risk. She will have a tight budget during the flip process as her 401k payback will be high on top of the loan payments (hopefully only 2 since we are planning to close on the 1st of the month which will give us 2 months to renovate and put on the market before 1st payment is due). She is also concerned that she is taking all the risk and wants more from the deal. Yes we analyzed keeping as a rental if it doesn't sell and it will break even after capex and vacancy. Yes I am hoping the arv appraisal will make us feel better as well. We decided to give her a 60/40 split if the total profit is <$25k and we will do a 50/50 split if the total profit is >$25k. Her cash in the deal will be ~$60k The anticipated total profit if everything goes according to plan (always happens right) will be ~$60k, so $30k each. We already have quotes for all the work and nothing major so hopefully no surprises, mostly just updating. Thanks all!

@Zachery Buffin That would likely be the most profitable way to do it and wish I did that a few times while I was younger. My wife will definitely not go for that now though. 

I think the terms are actually pretty good on the financing we are doing. We are doing a homestyle reno loan for 15% down of the purchase price AND rehab with a rate of 5.25%