All Forum Posts by: Steven Goldman

So I started these last 2 flips and finished the renovations within 45 days. We put both houses in the MLS and have had to reduce the price by more than 14% and still no offers. I am getting a little scared as my wife is an experienced realtor and is experiencing the same across all her listings in central FL. Our business real estate coach has also shared that the entire US is like that in almost all the markets.

This is the first time this has happened to me.

What are the recommendations?

1. continue to sell

2. DSCR loan

3. other?

Both houses were financed via Hard Money at 11.99%.

Hi Carlos: If you have enough cash reserve refinancing and renting these properties may be your best option. Can they be converted to STRS? That might be an option. The market projections for South Florida and central Florida are for the market to continue to decline due to the insurance crisis and the rapid appreciation experienced since COVID-19. I would move quickly. Time is not your ally. Good luck.

0 Votes

Orlando, Florida

Quote from @Myriel Pita:

Looking to invest in a STR in the Smoky Mountains, TN. What's the COC return I should expect in this market in 2024?

Our experience is that the area is very overpriced for available STRS. Lenders are very cautious with this market considering its values. Lenders will lower the LTV on this type of collateral to protect themselves. Good luck.

0 Votes

Gatlinburg/Pigeon Forge, Tennessee

@Wai-Ming Lau Not only is it reasonable I would not do the deal without it. Good luck.

0 Votes

Detroit, Michigan

As a long-time broker for Constructive, I am sorry to hear you had a bad retail experience. While utilizing a broker can be more expensive, the broker has a long-term relationship with the people they work with at the lender. They can make the mortgage process much smoother and less stressful. Many investors are penny-wise and pound-foolish. They want to be a jack of all trades. Investor and commercial financing is not the same as buying yourself a home. I suggest you find a mortgage broker and develop a long-term relationship so you receive kid-glove service and get out of the financing process. Good luck.

0 Votes

Out of state flips are very risky. You must develop a trustworthy team and then visit the properties even if they are a distance away. If you can invest in a location where you have friends or family who can be your eyes and ears on the ground you are more likely to have a positive outcome. It is important that you control your funds and do not let he contractor get out ahead of you or you will be left with a overpriced unfinished rehab to salvage.

4 Votes

Los Angeles County, California

Quote from @Yocheved Beer:

Hi all,

I have found a house in Lehigh acres Florida for a purchase price e .75 of of the appraised value and it is for sure a 1 dscr.

can I immediately buy this for 0 Dollars down

Hi Yocheved:

One of the cardinal rules in real estate is that you have to have some skin in the game. Rather than try to find a way to buy the property with no skin in the game I suggest you find a partner with some capital and share the deal. either that or wholesale the deal if it is for sale substantially below market value.

Have you thoroughly researched the property and its expenses? In Florida some of thereasons a property might be on the market for less than its market value:

1. High HOA fees
2. High insurance costs

If you have done all of your due diligence and it is a really good deal find a partner with the capital or put the cash in yourself. Good luck!

0 Votes

Quote from @Uendy Garcia:

Hi Everyone,

I am new in real estate, purchasing my very first investment property. My partner and I are under contract to buy a SFH in Fishtown, Pennsylvania. The house is build in 1875. The inspection showed more issues than what we anticipated. I am guessing this is common for the age of the house.

We are negotiating to get it under 200K, and invest 65-70K. Based on our calculations for repair, carrying cost, closing cost, the all in cost will be 283K. Once we sale, based on other comp in the area, our net profit will be around 30K. My question to you guys is...would you go through a flip for 30K or less before taxes.

Thank You for suggestions!!

Uendy Garcia

Hi Uendy, we are rehabbers and lenders in the Delaware Valley. We purchase in Upper Darby and Drexel Hill. I have also rehabbed in Brewerytown and University. I would pass on any project that does not have at least 45k clearance. In Philadelphia, hidden problems are just around the corner with every L & I inspection. Also, you need to know the rules regarding licensed contractors and tax abatements.

I would pass on this deal with a thin profit margin. I like to see a minimum 50k spread on any project. The greater the total costs the higher the spread. Remember, a rehab project is not static. The reward must be greater than the risk. Good luck!

1 Vote

Philadelphia, Pennsylvania

Hi, account closed. You will not be able to get a certificate of occupancy in Philadelphia until you have rehabbed the property. You will be required to submit plans and use a Philadelphia-licensed contractor. If you decide to go forward you should make sure you camera the sewer pipe to avoid a surprise expensive problem. Philadelphia L & I can be aggressive so you need to be permit compliant to avoid major issues with L & I. You will be entitled to a partial 10-year tax abatement from the day you pay for the permits. Good luck.

1 Vote

Philadelphia, Pennsylvania

I am looking for a lender who can originate a mixed use DSCR or private loan, on a property with a 250k value in Indiana. Co brokering is o.k.

0 Votes

Fort Wayne, Indiana

Quote from @Bryce Henson:

Hey there, I'm in the process of analyzing a fix-and-flip home in my area. I live in a resort town, with a lot of second homes, so the market price for an average home is already pretty high. The home needs pretty major renovations, but in my opinion would be worth it *if* the seller is willing to come down significantly on their asking price. The other thing to consider is the original owner has died, leaving the estate to his sister and nephew to sell. Also worth noting that he took out a reverse mortgage on the home before he passed away.

Based on these circumstances, and also just in general, I'm wondering how investor-friendly agents out there approach sellers that have a home that is too overpriced for a fix-and-flip situation? Not asking for any super secret strategies, just generally what your approach might be? Thank you in advance!

We find resort town properties are generally over priced and the owners are very reluctant to back down from their list price. All of Huy's suggestions are good ones. However, I would look for properties that are not in resort areas as the resort properties will all be inflated and the owners very recalcitrant to take substantially less than their imagined value. Good luck.

1 Vote

All Forum Posts by: Steven Goldman

Steven Goldman has started 15 posts and replied 503 times.

Post: Have not been able to sell my 2 flips?

Post: What's the COC return I should expect with STR investment in the Smoky Mtns in 2024?

Post: Multi-family building, existing tenants vs vacant?

Post: Anyone every use Constructive Loans?

Post: Flipping out of state....

Post: Can I put 0 percent down if my purchase price is .75 the appraised value

Post: Would you go through a flip for 30K or less before taxes?

Post: Buyer responsible to get CO

Post: Mixed use lender for property worth 250k

Post: Question for Investor-Friendly Agents