All Forum Posts by: Simon Shih

What's a flip to custom?

Welcome @Antony Handal. I'm working on my first deal in Houston. Closing in a week. I am also working on my real estate license. There's a ton of information here and a lot of really helpful people. Let me know if there's anything I can do for you.

I'm about to close on my first deal. It's a SFR. I'll probably stick it SFR for a while until a multi comes up in a part of town I'd invest in. I grew up in Houston, so anything you need to know, just ask me.

Another FYI. There's not much for appreciation in Houston. I wouldn't bank on it. Too much land to build. Houses that do appreciate, do so slowly. 

The purchase price is 240,088. Your loan to value is 96.5% which means you have to bring 3.5% down payment to the table.

The repaid are items this loan requires you to prepay so that when they are due, they can be said out of it. It's similar to escrow. The difference is prepaid items are required at closing and escrow are required in certain cases.

Yes. Perfect.

The 70% rule is the price you should pay for the house. It is 70% of the ARV (After Repair Value) based on comparibles. Compatibles are houses that sold in the area that are similar to the house you own. You should also know and make sure that you buy the house at 70% of the ARV minus repair and holding costs. So an example:

House will be worth 100K after rehab.
The house will need 20K in repairs.
Closing and holding costs will be 10K.
Your offer price should be 40K.
100K-20K-10K = offer price.

Welcome to BP @Alexander Stephenson. You are doing it in all the right ways. Good luck!

What's your interest rate on the line of credit? Do you have other financing options for real estate deals? I personally think I would totally use a line of credit to do deals. I plan on doing it in the future with a HELOC.

I want to be able to be home instead of being on the road 9-10 months of the year. I want to spend my time with my wife and family instead of being stuck on a boat in the middle of the ocean with a bunch of people I barely know. That's what motivates me.

Driving for dollar is the cheapest way to start wholesaling. You can buy a list from listsource or yellowletters and mail written letters. The cost associate with this is higher and you'll have to send the list once a month for 6 months. It's about timing. I have been documenting my journey to real estate investing, including wholesaling steps. If you are interested, the link is here.