All Forum Posts by: Robert Dean

 Thanks Bill, that is very helpful.  I am looking to establish a process for making this decision, and what you've outlined, along with the considerations the others mentioned, will get me there.  If I use the same as repaired value for both calculations then I should be able to compare the two values.

On this property I don't think 20% return is within reach, but a 7% cap rate is within reach.

I'm just getting started.  Buying my first duplex this month.  Yes, I'm very excited.  

My business model includes buy, rehab, and then either sell or hold. In general, bigger and more expensive properties will go on MLS to sell, and I'll hold smaller and multi-family properties.

For others who do this, what attributes do you consider when deciding whether to hold or to sell?  Is there an analysis tool or combination of tools that you use to make this decision?  

A local buy and hold investor recently advised me that margins for flipping houses in our local market (Northern Utah) are relatively narrow because the market is relatively stable and unemployment is low.  His advice was that buy and hold is a better strategy in a stable market.  Is that correct?

Joe Gore, I forgot to mention that I would make sure that we don't pay more than FMV. I'm thinking we would find something that we could get for less than FMV.

He finds the home, and I sell it to him for what I pay for it.  My only profit is the 2%, and my protection if he defaults is the equity, which is equal to his down payment.  Does that make sense?  I don't want to take advantage of the buyer, and am looking for what is considered reasonable.

What are your thoughts?

Yes, I was thinking the buyer pays closing plus a significant down payment so that if he defaults and the property comes back to me I have equity in the property.  Maybe 20% of loan value would be more reasonable.  Your thoughts?

Can I finance a property, in the name of my LLC, and then sell it the same day as owner financed? Would 2% interest (above what the bank is charging) and closing costs plus $10K be fair terms?

I have a potential buyer who has income and cash but very bad credit.  I have good credit, and am thinking we could both win.  The buyer would find the home he wants, and I would help with financing and make a return.