All Forum Posts by: Scott Michael

I was wondering how do you execute a deal, where two investors partner on a buy and hold, and one partner who is financiable brings a conventional mortgage. It seems to me I read about this strategy in Brandon Turner's Book Investing in Real Estate with Low and No Money Down. It's in the execution that I need clarity. Do the two partners put a JV agreement together, and then one person buys with conventional in his name, and then both partner's LLC's are added to title via a warranty deed and/or quit claim after the fact? My attorney says this is flirting with mortgage fraud. Definitely want to steer clear of that, so how does one execute this type of deal?

Thanks @Ned Carey that makes total sense!

I have one more question, something that is throwing me off is that I got a hard money loan with a rehab loan for $29,736. The rehab loan shows up in the Debit column, so along with the Sale Price of Property of $296k,000 and  all hard money fees and closing costs (all in the Debit column), the total Debits are $337,762.16. The total Credits of 1k earnest money and $266,536.000 are $267,536. So the difference between total debits and total credits was $70,226.16 and that was the amount Due From Buyer that I had to bring to the closing table. That is a long set up for my question, which is, it looks like the rehab loan is money that I had to come out of pocket with. If it was truly a loan, wouldn't it have been on the Credit side along with the loan to buy the property? It seems like they are loaning me money that I paid them when I bought it. I can post a picture of the settlement statement if that's helpful.

Thanks,

Scott

Hi everyone!

I'm a wholesaler who has gotten into flipping. I just flipped my second house and am trying to figure out how much money I made.

I have used a pro-forma profit projection spreadsheet provided to me by my hard-money lender which bases projection on purchase price, hard money origination fees, closing costs purchase and sale, rehab costs, realtor fees, and holding costs, and I have replaced the projected numbers with my actual numbers. This gives me a Profit of $61,898.55.

I then tried using the closing statements from when I bought it and when I sold it. The Due to Seller when I sold it was $148,042 and the Due From Buyer when I bought it which was $70,226, and the difference was $77,816, and then subtracted holding costs of $9,711, and get a resulting $68,105. I thought that the number should match the sale price minus purchase price and all costs method.

Wanted to see if someone can tell me why these might not match, and how I should calculate profits at the end of a flip.

Thank you!

Hi Guys and Gals,

I'm a wholesaler and new to Portland. I was wondering if there is a rule of thumb formula I can use to quickly estimate repair costs in this area, for example it costs a house flipper $X / sq ft to rehab a house, that would cover kitchens ,bathrooms, floors, paint, etc, of course barring any major repairs such as roof, foundation, etc. 

Thank you,

Scott

@Ariana JImenez, @Joe Homs is a great help to newer investors in OC. He also teaches free classes on wholesaling, flipping, and other topics. Take him out to lunch and he'll help get you started. 

I would like to purchase a rental property from a wholesaler using hard money, then after the seasoning period put it on an FHA loan at 3.5% down. Can I do this?

Thank you @Andre Crabb

My brother and I are looking for an offmarket Duplex, Triplex, or Fourplex in Miami, FL. We are looking at this as a buy and hold cash flow property. We are not looking for anything that has been recently rehabbed, and please nothing on the MLS.

If you are a wholesaler or another investor that might know somebody we should speak with we'd love to talk with you. All introductions are appreciated!

Awesome story bro and from the looks of your profile you are killing it in S.A.!

Question, when you say you bought a deal off the MLS that was a wholesale, how did that work? It was listed first then another wholesaler tied it up, then sold you the contract?

This won't be my main strategy, I have a marketing budget I am utilizing but I am thinking about doing this as well, like you said, only to distressed properties that are listed.

@Mike Cumbie I really appreciate your answer. Getting my license is something I might do, as you say it protects me and allows me to market deals in more places. The recent episode with Sam Craven, a who is wholesaling on a mass scale in Houston, shows that you can do it without a license. What I like is that he's upfront with sellers in the apt saying that he will assign the contract to another investor. In few appointments I've been on since starting I've said this to sellers and they don't seem to have a problem.