All Forum Posts by: Ross Schneider

@Sean Yeaney interesting.  So, if you only need the money for 5 months, is the $7500 prorated? 

Speaking as a wholesaler, I know investors who use both. There really is no inventory on the MLS and that is what most realtors will use to find deals for their clients. That being said, usually winter is a much slower time for real estate.

Lately I have been approached by realtors because they need other avenues to get their clients properties. Really what the realtor helps with is negotiations. After a few deals, you may find you won't need a realtor except to list your properties. I am a licensed agent, but I only use my license to have access to the MLS to pull comps on properties that we buy.

@Sean Yeaney

Do you have to pay the $7500 up front? Most flips take about 4-5 months (thats on the extreme end).  It sounds like he is rolling the interested and points all into one.  There are lots of lenders out there.  Don't limit yourself! 

Getting into flips is a great way to build your capital.  I have lots of investors who will flip 2-3 houses, then buy a rental and continue the cycle.  How do you intend on finding properties? Are you going to go with a realtor, or look at wholesalers? 

Happy to help with any questions you may have! 

-Ross 

@Cameron C.  Some good questions. 

1.  I think that would be a good idea to update them with your information.  I would consult a real estate attorney before making any changes to the existing contract.  

2. It might be easiest for the current owner to escrow the deposit check with the title company.  Once it closes, it will then be given to you.  

3.  Other than a sellers disclosure, I'm not sure what else you can do.  Have you had a contractor check out the house, or have an inspection done? Since you have lived in the house, have you noticed things that don't work? 

Hope this helps some! 

Ross 

@Jon E. The link you provided does not work.  DM me the numbers and I would be happy to take a look! 

@Gilbreth Seno for flips, you should always use cash-on-cash return or just look at your bottom line ROI percentage. Cap rates are used to evaluate long term buy and holds. Many multi-family companies buy off of a cap rate. They look at what the property is worth, and what their NOI is to determine a purchase price. As far as for rentals, I do know of investors who use cap rates to evaluate deals if they are looking to pick up multiple properties. That being said, I had someone try to sell me two houses last week who said their cap rate was "through the roof!" That being said, after comparing his asking price and ARV, there was only about 5% equity in the deal. Needless to say, the deal didn't work. Also another thing to take into consideration is that banks will not lend on single family homes based on a cap rate. It just doesn't happen, unless you have some crazy relationship with them.

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@Matt Kampf, 

Property 1: Is the property an REO? Regardless, I would just keep calling the listing agent until they pick up their phone or give you some sort of answer. That is unprofessional.

Property 2: Its not uncommon for the property to be tenant occupied AND have a statement saying "no showings until accepted contract."  To me it makes no sense..... It makes even less sense that the listing agent would tell you to go knock on the door and see if they will let you in especially since the seller specifically did not want that.  I would be careful in that situation. I would send over a contract with a counter, but put in special provisions no EM or OM will be sent to title until you can see the inside and do your due diligence.  

Hope this helps.  

Regards, 

Ross Schneider 

@Mike D. have you tried looking at Loopnet.com? That is basically the MLS for commercial properties. There is another similar website, but can't think of the name right now.

@David Sray, speaking from my experience, usually the seller does turn over the deposits at closing.  I would state that in the contract and get the exact amount so there is no confusion.  It may seem redundant, but its better to be safe than sorry.  

Hey @Johnathan Pasch! First off, welcome to BP.  What type of financing are you looking for? Any other questions you might have, feel free to ask and hopefully we can answer!