All Forum Posts by: Shawn McKee

Sold my first flip earlier this month. It was a fun experience and I learned a lot along the way. purchase 74,000 / $24K Rehab / ARV $142,000 / Sold for $139,995 Hired the electrician and drywall finisher but did everything else..... probably won’t do that again 🤦🏻‍♂️ TIME IS MONEY! Check out the finished product here: https://m.estately.com/listings/info/706-marlborough-court--1

@Matt K. If I have 20% plus $ for renovations would you suggest using some sort of private lending to initially obtain the property then refi once rehabbed and it’s rented out?

@Todd Willhoite thanks so much for the clarification. What type of loan did you use on the initial purchase?

@Jaysen Medhurst I guess what I am asking is for a little insight on the process. I own my primary residence in Savannah. I purchased with VA. I have found some fixer uppers near Fort Stewart about 30 miles from Savannah. I can’t purchase a secondary investment property with the VA. From everything I have researched if your purchasing a home that you have no intention of living in then 20% down payment is required. Are there ways around this? I’m sure that there are, I just haven’t come across them yet. Any help would be greatly appreciated!

I hear a lot of stories about investors buying properties and pulling back out their initial capital using the BRRRR method. Great idea! Is it possible to do the same thing but start out by putting 20% down with an FHA loan and then rehab, rent, refi with new ARV?

We have a lot of philosophical tight wads on Bigger Pockets. Quoting books like it’s a bibliography section.... “lottery is a tax on the poor” “lottery is a tax on the poor”.... blah blah blah! If you can’t spend two dollars for an odd chance at a billion then you’re an idiot! What is $2 anyways in today’s world? A coke?

@Jay Hinrichs I did the 3K down for dohardmoney and like you said no deal was ever good enough. They made it sound like no money down was needed and then it came down to needing all of the rehab money upfront. My contractor laughed at their 10% initial rehab money they give for your deal. He said he couldn’t even pay his crew for a week. Long story short we ended up not using them, and got duped out of three grand. We close on our first flip next week. We also rushed into the “flipping” world. We will chalk it up as the cost of doing business and not networking enough prior to....

@Debra Grumbach When you say buy direct, are you meaning closing and everything. We are essentially doing it under the table, but I want all parties involved to be protected. He had to move in a pinch and just wants what he owes on it, but doesn't have the knowledge or skills to rehab the property and sell it for a profit. That's where me and my business partner come in. The way I would love it to play out is that essentially there is a double close when property is sold. We buy it from him for what's owed and then buyer buys it from us. Is that even necessary?

I'm buying a house from a guy who already vacated the property. He wants us to pay the mortgage ($600) a month while we are remodeling the house, and when we sell the property to pay off the remaining balance of $74K. The ARV is in the 130 range and it only needs 20K in rehab. What type of contract do I need to type up? And or assigned? Any help would be greatly appreciated. V/R, Shawn

Taylor Matthews Sir, there is definitely some interest.