All Forum Posts by: Ryan Myhre

@Craig Jeppesen

I am looking for a bank that will refi some of my rentals.  Is ICCU investor friendly?  If not ICCU any other recommendations?  I have a lot of cash flow and equity but the banks I have looked into so far get caught up in the number of rentals I have.

Thanks

I get all my lists through the title companies for free.

Mountain America Credit Union is a great bank.

What time of day are you door knocking?  I try to door knock in the afternoons before it gets dark or on the weekends to give me a better chance of someone being home.  I have not found much success with leaving something behind that gets people to call.  What I have used that has worked is a yellow sticky that says something like "I noticed you are having issues with your mortgage I would like to help you stay in your house.  Give me a call."  In my experience everyone in pre-FC wants to stay in their house.  By saying this they are more likely to call.  Whether you want buy the house and flip it or keep them in it and rent it back to them it doesn't matter, it gets you a call to set up an appointment.  At that time I usually talk to them a bit before even talking about the house.  When you do start talking about  the house find out about their situation and relate to it.  Next I walk them down the path of ways to save their home and have them answer your questions:

1) have you tried a loan modification

2) have you tried a forebearance

3) have you tried refinancing

4) bankruptcy

5) borrow money from friends or family

Once you get through all the options and they have said those options won't work then give them your offer. 

How close are the city services?  If they are close the city will make you hook up which can be very costly. If they aren't, I agree with your contractor in that district health will not allow it.  

Are you using cash for the purchase or using private money? 

In my area and in my experience you need to buy at a significant discount with enough room to fix up what is needed. Also most banks will want 6 months of seasoning before they will refinance. The other option is to talk to other banks that will refinance at a higher ARV.

So after realtor fees and closing costs you made about 10k?  How long did it take?

I am always looking for more contractors for my fix-n-flip properties.  It would be nice to meet up.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $79,157
Sale price: $210,000

Contributors:
Sarah Brown

Typical rehab project that was in bad condition. Bought as a 3/1 and added a master bedroom. Also split lot and will build new house on lot in spring.

What made you interested in investing in this type of deal?

It was a run down property on a large lot that I could split and build on.

How did you find this deal and how did you negotiate it?

I was driving for dollars and I saw this property. I than proceeded to knock on neighbors doors until someone could get me in contact the owner.

How did you finance this deal?

Private money lenders

How did you add value to the deal?

Completely restored property, added a master bedroom and split lot to build on.

What was the outcome?

Sold property right away and working on getting approval to build on lot.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Sarah Brown - BS Real Estate

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $278,000
Cash invested: $389,000
Sale price: $775,000

Restoration of a 1895 Victorian home. Restored original wood trim and floors. Added a basement

What made you interested in investing in this type of deal?

I had never done a restoration project and I was interested in trying something new.

How did you find this deal and how did you negotiate it?

My realtor found it for me and I increased the offer by 20k to get it accepted before the open house.

How did you finance this deal?

I used hard money for the purchase and private money for the rehab.

How did you add value to the deal?

Completely restored property that had been recently moved to a new location and placed on a basement foundation. Added all major systems in the house, added stairs to basement all while trying to keep as much of the original house as possible. Added a master bathroom and a detached garage. We originally listed for $889,00 and eventually sold for $775,000 after 5 months on the market. I rather stick to me much lower priced rehabs

What was the outcome?

I was able to pay all my investors off but lost money myself

Lessons learned? Challenges?

I was not prepared for this rehab. I way under estimated the rehab cost and time frame to get done so my holding costs were high. I had to fire a contractor halfway through the rehab and than we discovered he did about 20k in damage to the house that I had to fix. Since I went over my rehab budget I had to fund the rest of the rehab for profits from my other rehabbed properties which in turn took me much longer to get done.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Karla Garner - Realtor