All Forum Posts by: Account Closed

For HML, it depends on the lender, but where I am, it's 3-5 points, the cost of the appraisal and survey, insurance and the application fee. Out of pocket could be anywhere from 2000 and up depending on the amount of the loan. For example, I'm about to complete a closing with a HML and my out of pocket is around 4000 for a 86,800 loan. (70% of ARV). Once closing is complete, you'll have to have money upfront for the rehab cost and take draws out after completing the renovations. I plan on doing around 10,000 in repairs with my own money, keep the receipts, the HML sends someone over to verify I have those repairs completed and I get my 10,000 back to do the next set of repairs. To be safe, I like to have 20,000 in cash to do a flip with a HML. Don't forget, you'll also have the money for holding costs: electricity, water, sewage, gas, trash, and the payment for the loan. That's another 1200 a month for 6 months which is the term of the loan, so the faster you can get the rehab done and back on the market, the better off you are. However, a lot of loans have a 90 day seasoning, so you'll have t hold on to the property for a minimum of 3 months.

A investment conventional loan is another option, but then you have to put down 20% of the loan amount, closing costs and then have to have cash for the rehabs. You'll have to have more cash on hand for this scenario.

Already have Mike.

Nope, married with step kids.

8 years ago I tried to use Home Depot to get a new front door installed on my primary residence. I paid them to have a contractor come out to measure the door and once they submitted the bid to Home Depot, I was suppose to get a call from them to come in and pick out my door and pay for the rest of the installation. I think I was out 30 bucks. They measured the door and I never received a call from Home Depot. I called them and got the run around, so basically I paid 30 bucks for absolutely nothing.

I am the type that expects great service when I pay for it. If I spend 200 dollars for dinner for two, then I expect the service to be perfect. When I go into a convenience store, I expect the guy behind the counter to check me out without yapping on his phone. And when I get bad service, I don't go there anymore.

I haven't shopped at Home Depot in over 8 years because of that one bad experience, but after deciding to become a rehab/flipper, I decided to email them to see if they would make things right and give them another chance.

I sent their home office an email detailing why I was unhappy and why they haven't received 1 cent from me in 8 years. I also mentioned my new business of flipping houses. I got a call from the store I had the issue with within 48 hours and they are going to give me a gift certificate for the amount I lost back then ($30) and $200 off my first purchase of materials for my rehab.

Glad to finally have options again for my hardware needs.

BTW, I still don't eat at Quiznos and haven't shopped in a Walmart in 5 years.

Yeah Jon, I know it's all part of it, but still frustrating.

So the closing on the house I've had in contract has been pushed back again (second time). I spoke with the wholesaler yesterday and it seems that the they are "still working with the front side title company on getting the HUD’s ready" No idea what that means, and when I spoke to them, there is a small possibility that the house won't close at all. So after a month of getting estimates, financing in place, insurance and all that $#!+, I might have to start all over again.

I understand that it happens, but why are banks dragging their feet to get these foreclosures off their books? Seems to me they would be busting their @$$ to get it done.

My favorite flip book is "Buy It, Fix It, Sell It: PROFIT!" by Kevin C Meyers. I've read it a few times and got a wealth of information from it. Another great resource is J Scott's blog @ http://www.123flip.com/. He goes into great detail on how to setup a company, find a great team, financing, figuring repair costs and the trial and tribulations of flipping houses.

As a rehab investor/flipper, I wouldn't take a wholesaler seriously if they could give me a rehab estimate on a property they were trying to wholesale. How would I know if the deal was worth looking at? I get about 5 deals a week across my desk and they all have repair estimates. I do my own due diligence, of course.

If you don't want to or feel uncomfortable with give a number for repairs, at least come up with a list of everything that you think needs updating and repaired. This give me at least an idea of what costs I'm looking at to see if it's a deal.

In today's market, there aren't many hard money lenders that don't look at credit. Credit is still an issue.

Just because the numbers work doesn't mean it's a good deal if it's in a war zone. There are other things to consider when the location is less than ideal. Do a search in the forums. I know many an investor that pass on homes in these areas including myself. Don;t try to make a deal just because you are ready and you want a deal. I'm about to close on my first property and took over 3 months to get here. It'll happen. Wait for the right deal.