All Forum Posts by: Syed H.

lol that's a great OP. I guess the only good landlord is the one who pays out the *** to the PM.

All of the above. They moved in with family, people downgraded, if an area lost employment people moved to find a job. 

Many of the people in foreclosure in judicial states got to stay in their houses for 5+ years without paying. So they didn’t have to move into a rental until they actually got forced out. 

Since you are a first time flipper, your perspective is different than many of us who have been doing this for 5+ years. People who have flipped millions in property. 

Have you been through a cycle? There are many ways to get burned in a down cycle. What happens when liquidity dries up? Your flips can go belly up, your buy and holds can’t be refi’d; etc etc.

There is nothing wrong with being somewhat conservative. Many people in our industry got absolutely creamed in 07/08. Many on here. 

People that need to shoot for the moon on their deals, will eventually get burned. People who use extremely high leverage, will eventually get burned. It’s not a matter of if, but when. I’ve seen it many times unfortunately. 

Mitigating risk is one of the most important things once you are past the preliminary phase of building your capital. It is a careful balance on taking risks in a market like this. 

I'm still buying, but I make sure I only do projects with short term timelines and ones that don't need to hit a very high ARV. My buy and holds are only homerun deals.

Depends all on your area. If your area lost jobs, lost employers, you got hit with higher vacancy and lower rents. Also it was difficult if you had a commercial loan come due. You couldn’t refi. 

Do you hate ALL your properties? Or just one? 

Hating one is normal. If I hated all of them, I wouldn't do it.

I disagree with the guys here. I don't do anything for just money anymore. I genuinely love flipping and buy/holds. Building an empire is fun for me. 

There's plenty of ways to make a lot of money in this world. Find the one that you like the best. Do something extremely well & money will follow.  

Depends on your area and comps. On a cheap house any new vinyl is fine. On an expensive house I’ve down Andersen 200/400 and higher

@Jacob D Cockerell No offense to all the lenders here, But if you can, DO NOT use a HML for your first flip.

The first flip is a learning experience. It is a fun and stressful time. There is enough to worry about on your first flip. Worrying about paying the extra cost of a HML, becomes daunting. Waiting for you first draw to hit might delay your project.

When we first started flipping 7-8 years ago, many of the HML's were unethical sharks. Many wanted to loan to own (here in NY). Effective cost of the HML was extremely high (close to 20%). You would need a major homerun deal to be able to afford that.

We didn't start borrowing from HMLs until 3 years into the business. At that point we found much better HMLs that worked with us, had streamlined fees, and charged us wayyyy less. Even on the first flip we used a HML on, we had an extra level of stress lol.

If you do go with a HML, make sure the 3rd party fees are reasonable. Attorney fees, appraisal; etc etc, should not be excessive. These will depend on your market.

Make sure you know the draw fees, draw process, and inspection costs. 

EO taxes will kill you. Same with Irvington. Also building dept. in all 3 are a pain with the fire & safety inspections. 

IMO, these markets are only for the very experienced. If you have no construction experience, do not try to buy a gut. It will cost much more than it is worth. 

Your offer depends on your area. Some areas don't allow DD/Inspection/Financing contingencies. Speak to a local broker and he'll guide you in what is the norms of your market. 

 Huh?