All Forum Posts by: Christopher W.

I'm pretty sure that you are very close, if not at the #1 position. I currently stand at about 10 countries total. Actually I think I've been to more foreign countries than states here in the US.

I have not seen many HMLs that will fund 100% plus rehab costs. What I have seen is that they will lend a certain percentage (usually 65%-75%) of ARV. So, if you can find a killer deal where purchase and rehab are less than 65%, then they will fund the whole thing.

I also enjoy those flipping shows, but as been discussed on here before, they almost never show the whole picture. They don't discuss any of the financing or holding costs, taxes, insurance, etc.

Almost all lenders require the short sale to be listed, but there are ways around it. However, I'm not sure about the success rate. I have heard that if someone writes a letter stating that the house is in horrible condition it would not sell on the MLS or some such BS, that may work.

As with anything with the tax code: if you have to ask 'what if', you already know the answer. The potential fines/fees are pretty onerous, even in the grey areas.

Ok I think I see what you are saying, but if this was a partnership wouldn't you be involved in the managing as well? If you were just bringing the money wouldn't this be more like a private money loan?

The house prices compared to rental rates in most places of CA are really bad - especially compared to other parts of the country. They require a larger outlay of cash which messes with the overall return. A lot of the landlords I know have owned houses for at least 10 years. Most have owned the same rentals since the 60s and 70s.

I'm in CA and have never heard of El Centro before just now. In fact I had to go look up where it is at. I don't know anything about the El Centro market, but it seems like a decent place to start a wholesaling/flipping business - especially if you already have investors to work with. I think you may run into a problem if you try to find retail buyers though. I don't see a lot of job growth or an influx of residents. High unemployment and foreclosures will just compound the problem.

50% seems like a lot if you're just providing the money and nothing else. 70% is just plain ridiculous. The only way I could see those numbers is if you are providing something in addition to the money - maybe walking someone through the deal as a teacher/student relationship. 10%-12% seems to be the standard for people that know about real estate. Maybe even less than that if private lenders are comparing it to bank rates.