All Forum Posts by: Scott Lepore

Glad to hear some people are still finding some decent deals with a bit more elbow grease.  Guess I'll have to step up my game.  I've been very lucky with having the same awesome crew for years which is half the battle.  Now I'll work on getting the other half of the battle taken care of.  

I agree Stuart, my best "flips" have been rentals that I held for 5 or more years. Its not always easy to come up with the down payment. I have never found a true BRRR deal with zero out of pocket. Don't want to sound like a whiner but I think it's not unreasonable to suggest that these metrics (70%ARV and BRRR) are much easier said than done.

Thanks Benjamin.  I would be curious to know how many fairly seasoned flippers routinely find 70% deals.  It is such a tossed around number and it is just not a realistic metric IMHO.  

Let's say you have a flip that has an ARV of 600k (in Denver that is approximately average house price now). 70% of that is 450k. Probably needs 60k MINIMUM for a nice flip. That means you have to purchase it at 390k. I find VERY few deals where you can have over a 200k spread on a 500k or 600k house. And exactly zero deals like that from wholesalers. Hometrust has never offered such a deal (their rehab estimates are laughably low) I would like to hear what other investors are finding that even comes close to the 70% rule and how you are finding them. Wholesalers? Your own marketing? MLS? Any insights much appreciated.,

2% is very easy to get.  All you have to do is hold the property for 10 years until your rent increases to that point.  Because the amazing thing is, the mortgage payment stays the same for some reason. 

Eliott, I agree that it's hard to fail with 70% ARV less rehab. Unfortunately for me it's very easy to fail at finding anything closely resembling that good of a deal. On an average 1000 sf 3/2 that needs 60k in work, at a 500K ARV times 70% of ARV we are at 350k, less 60k rehab, that is a 290k purchase price. A 200k spread on a 500k house is very hard to find; at least for me and at least in Denver and at least from the wholesalers I know. 150k spread is usually the best they offer on a 500k ARV house. And I find that 60k is my number for a nice remodel on a 1000 sf home. So I'm either not finding the good deals or spending too much on rehab, because I cannot get to that 70% rule. Not even 75%. Maybe 80%. Curious how many other flippers out there can buy at that 70% rule.

You then subtract your repair costs to determine buy price.

ARV 400k

75% of ARV 300k

50k rehab

250k purchase price

I personally find it very difficult to find deals that meet this criteria.  At least from wholesalers. 

No, I just have a long-term rental with them.  

Definitely do it yourself.  That way you can quickly realize that you can't/would never in a hundred thousand million billion trillion years, want to do it yourself.  A good PM company (GOOD being the key word) is worth every single cent and will keep you from aging pre-maturely. I am not a PM so this is unbiased advice.  

Hello, I am looking for a good mortgage broker in the Denver area to refi into a DSCR loan. Any recommendations greatly appreciated. I prefer a broker, not a single mortgage company.