All Forum Posts by: Sean Hurwitz

@Rick H. is that a random number you came up with for that specific property?
Or is it a standard practice?

* I'm gonna go check out the ProperrtyRadar right now. Thanks for the tip.

Much appreciated my friend.

@Brandon Sturgill 

Man, what a GREAT amount of info and numbers. THAT's what I'm talkin' about!
Thanks for sharing!

Now that I know all that, including expenses as little as $5 bank fees for Cashiers check and $25 for the lawn to be mowed by the kid next door (love it!)...

* Are there expenses that you feel that (at this point) you can break down to percentages?
Will Utilities always be a 'similar' percentage per month?
What about Insurance, will it always be a similar percentage? Or does it vary greatly from property to property?

* Do you use any calculator that has proven to give you a (pretty) precise calculation of these parameters before closing on a home?

Looking forward to getting the workable format!

Thanks again

@Jeff Wallenius Q&A to your comments.

* I'm not expecting to work with HOA properties off the bat, but that's a good point.
If you KNOW of the HOA situation...is there a way to get an exact number while you're
in escrow? Or is it always a surprise after closing?

* The sewer situation you mentioned as an example is a good one. Thankfully I'll be working with a very experienced and vetted GC. So, I'm hoping that he includes all those hidden fees in the Rehab cost.

* 1% in seller paid closing costs - Is that MY share when I sell the property? What is the total % of closing costs that needs to be taken into account. Just wondering if there's an answer for that.

Thanks for all the help!!!

I guess we have to be connected first for me to PM you...so...

@Mark Gagner 

* You are correct in understanding that the hard money lender will provide 70% of "ARV". I've got some loans that could be 65%, but I DO have a hard lender willing to do 70%.

* Do points usually just come off the loan or do you have to write a check for it up front?

* Do you have a favorite insurance company to go to? What kind of insurance does a rehabber get to protect the investment? I mean, what's the name of it so I know what to ask for when I chat with insurance guy?

* In your area (which I've been to many times since that's where our management is) are tax fees due every month? Quarterly? Twice a year? Once a year?

* You mention "18K balance from closing" - What does that include?

* How would one create a Construction Draw account?

One thing to keep in mind. The GC I will be working with on these first few (at least) is an investor and has been working with an investor friend of mine for 3-4 years now. They have a good relationship and he doesn't nickel and dime her AT ALL. They've both made that very clear. If he says a simple rehab is gonna be 40K, it's 40K even if there are unforeseen issues he encounters...assuming they are not 10K over budget :-)

@Mark Gagner @Brandon Sturgill @Jeff Wallenius @Rick H. 

Thank you so much for you great input.
I'm checking it all out right now and will send you personal messages in regards
to questions that arise.

Have a great weekend!

Excellent stuff @Ruben Prieto 

Thank you! 

Hi there, I'm a 'newb' from Los Angeles, CA and I have a quick question for all of you out there.

Here are the stats on a hypothetical Flip deal:

Cost: $125K
Sale Price: $220K
Rehab total: $40K
I'm planning on putting down 20% (25K)
Hard money covering 70% ARV at 11% for 12 Months and 2.5 points up front. Let's say the project takes 6 months.

NOW comes the question:
What are all the OTHER fees, the Closing fees (and any other hidden ones I don't know about since I'm a newb) all the fees that I'M expected to pay for out of my own capital? In other words, how much CASH do I really need?

I'm looking to close on a house (like the one in the example) some time soon.
I already have the Hard Money behind me and I have the team ready to go (Realtor & GC) But before I make the move I need to know what my financial responsibility is.

Feel free to say "Your Realtor can give you all the numbers you need", but what I'd really like to know, is if anyone has a rough calculator (Other than BP's Flip calculator), like maybe an Excel spreadsheet or something where you put in the numbers and it's tells you what you need and all the other good info BASED on the numbers I gave you above.

Thank you all for your help (in advance).

Happy new year and have a great 2015!

Just another LA guy here that wants to say, welcome to BP @Michael Gray 
Lookin' forward to learning from your experiences.

Happy new year.

Thanks @Brandon Turner and @Dmitriy Fomichenko I appreciate the support :-)
Brandon, make it happen...don't wait too long or there won't be anything to see :P

Welcome @Matt O'Meara .

I hope you get all the answers you're looking for here at BP and I'll be looking forward to the "I closed on a home" blog ;-)

Have a great weekend and a happy new year!