All Forum Posts by: Suzanne Griffiths

Hi @Catherine Peters you have a great resource in Denver that understands this method, Pine Financial. They will fund 100% of the purchase and repairs up to 75% of the ARV. They will connect you with a lender to get pre-approved for the refinance and understand the difference between rental rehabbing and when you are rehabbing to sell/flip.

hi @Karen Higgins we are members of MNREIA.  Yes, it's a good place to network with others and they have several beneficial spin off groups.

Hi @Devonte Skrebes I think you are looking for networking events?  Although, networking at auctions is a great way to find cash buyers.  The Hennepin County Auction dates/times are posted on their website.  Same with Ramsey County.  This would also be a good learning opportunity.

For networking groups there are many in the Twin Cities area, Meetup is the best place to find the groups and their meeting times.  For example there is a BP group that meets bi-monthly, I believe this Thursday is the meeting.  MNREIA meets the 1st Tuesday of the month and has several spin off groups for Apartments, Notes, Women, Millenials, Wholesaling and the Cash flow game.  There is MNREC and then Pine Financial does a meet up that they advertise here on BP and on Meetup.  All great places to network and meet with people.

Geoff B. If you have access to or have networked with a PML that wants to make that large of investment it is usually the best option. Interest rates and terms can be more flexible. I would suggest getting a construction loan through a bank at 5% and use a PML for the gap.

Marcus Durant it would be best to have a contractor come with you and give you an estimate. We rehab in the Twin Cities and have in Washington State in the past. The cost here is considerably higher than Washington State, almost double. Be very cautious with trying to estimate based on SF. You can get in trouble very quickly this way.

Hi @Mitchell Boatman welcome to REI in the Twin Cities! If you want access to REO's you'll need access to the MLS. It will be a good idea to get an agent on your team that specializes in these types of properties.

I would also suggest driving for dollars, doing some research on those properties and some targeted marketing efforts.

Good Luck!

@Christina Wrightsman, you may have more luck with a remodeling contractor that is willing to do small jobs.  They'll have the required licensing you need and be able to pull the permit.  You could probably purchase the door (at Home Depot or Menards) as suggested as fire doors are common, then have then install it.  This should also ensure that the door swings properly etc.

@Miles Stanley  Way to stick with it and figure it out.  Thanks for sharing!

Hi @Jason Benson I think the more important question is, do the numbers work? Here is a simple way to do a quick test. ARV multiplied by .70 (seventy percent) minus repairs = Maximum Allowable Offer.

So in your case above I would go conservative and use the low end of your range to be safe:

$165,000 x .70 - 20,000 = $95,500

So, at first sniff your offer of $86,000 would work.

Now, make SURE that your estimated repairs are accurate.  In our market here in MN we rarely find a rehab that we could do for $20k.  You mentioned that the property has been sitting for awhile.  One of the things that can tank your budget quick, fast and in a hurry are mechanical or plumbing issues.  You have some cold weather there like we do here, so a property that hasn't been winterized properly can easily land you in a situation where you need to re-plumb the house.  Does your budget have a contingency for something like this?  How many bathrooms need to be upgraded, does the kitchen need to be upgraded?  Those things with a potential issue we would be looking at a minimum of $30-$40.  Add in paint, carpet, light fixtures, exterior repairs and it all adds up quickly.

Now, you also asked if your offer was reasonable compared to the list price. We honestly ignore the list price on a bank owned property and really focus on getting a solid ARV, nailing down the repair costs and then submitting and offer that makes the numbers work for us.

Hope this helps!

Today looks like it brings good and bad news.  We'll get the bad out of the way...

-As my gut was indicating our lender has become completely unresponsive, the title company relayed this to the seller and the deal is dead.  Such a bummer.  Now I have to call the prospective tenant that we had locked in on a 2 year lease.  Live and learn in this industry right?!?

-Great news, the bank gave us the green light for our new build.  We are onto the next due diligence step and looking for the gap funding so we can close and break ground!

This is a great opportunity for someone to earn an excellent return on their investment passively.