All Forum Posts by: Russ Draper

Sounds to me like you are trying to solve his problem for him.  Some lenders do specialize in rehab/fixer sort of loans and are used to working with flippers, however he probably needs some "skin in the game" like 25% of purchase price or something to actually close.  I don't know of anyone that would work with someone with no history and they finance the entire deal.

When you make an offer you can show proof of funds so the knows you are serious.  Normally people show bank letters showing they are pre-qualified as proof of funds but if there is no bank they want to know you can close and not waste their time is all.

I found repair costs slightly lower with duplexes/4plexes than SFH and the rents were lower. I would aim for a higher ROI around Indy!

Ok, so gut reaction is this: You want them to put up 90% of the money and only get 50% of the profit? Hard money loans are 9% per year plus points now, so if you were to only pay 10% back you would have to pay it back really quick! You are saying the deal is a potential 100% ROI so it would sound like you should be able to find financing somehow to make it work. But I would do a lot more due diligence before believing those numbers.

Why not look into mobile homes as an investment instead?  Have you read the Lonnie Scruggs books?  Lower cost of entry, more likely to get a loan to rehab or flip it, etc.

If it won't pass FHA that likely means you can't get a loan as it sits and would need alternative funding. I think anyway. If you can purchase in cash you could have a look and make an offer.

I think they would have to show something from a doctor, but I wouldn't tell them what they need to provide I would just start eviction for pets.  I believe that yes there has to be something regarding pets from the previous owner.  They are just trying to slip something by you, be firm and start eviction today!

You have found an investment you wish to back?  Ideally whomever you are investing with would provide the documents, but you would want to secure your investment as much as possible with a lien and a contract I would think at least.

Well "is it a good idea" is subjective, if the numbers make sense then it probably is.  Is it worth it for you is another question.  It can take a long time for permits, and not being able to drop a pre-fab home and having to build fresh can be frustrating for some.  Could you just buy an empty lot and build on it?  Are there lots available even?  Is it worth it to knock down the house and build 4 townhomes or similar instead?

Building a home can cost $100/sqft or $200/sqft or even more.  You should talk to a builder to see what they would charge to build in your area, prices can vary considerably!

Most sellers grant extensions for closing, it is more work to re-list and show a property than to just grant the extension.  Are these repairs you can possibly get the seller to make or give concessions for?

I would start with some books!  Your question is too vague to really answer.