All Forum Posts by: Travis Steinemann

Hello BP! I have a website lead that I might need a money partner on. Here are the details: 

Seller Motivation: Need to sell quick for cash to cover family medical bills, and family comes before money so they are willing to take a significant loss.   

Purchase:$525,000

Repairs: 0/minimal. They said the only known defect is a crack in the driveway concrete. 

ARV: $700k+

Utilities (Annualy): $3,960

Taxes, insurance, HOA (annual): $4,865

Appraisal, inspection: $1250

Closing Costs: $5,000 per transaction $10,000 total

Realtor Fees ~$50k

This property is in Louisiana about 35 minutes north of Baton Rouge. It is a 4800 sf 4 bed 3 bath on 7.7 Acres with mature Cypress, Magnolia, and hardwood trees. There also are several cleared acres for horses. The house also includes a front covered porch and back covered kitchen/entertainment area. Also have a 600 s.f. building with new wiring, plumbing and insulation awaiting build out as apartment, office or workshop. There is a saltwater pool, tiki bar, stocked pond with a fountain and fish feeder, all 3 bathrooms were remodeled with 2 new tile walk in showers, and two new AC units. It does not require flood insurance and has never flooded. 

My experience is 8 wholesale deals, one fourplex successfully BRRRed and a single family also successfully BRRRed. I can buy right, but I have two other houses under contract right now so my cash is tied up (two more BRRRs!) I need a partner with cash to get this thing done, or potentially a hard money lender who can work fast. 

I already approached the listing agent from when it was listed in 2018, and she said she may have buyers ready now. I have a more detailed call with her tomorrow. I ran my numbers assuming it would take a year to sell, and we still make money at 3 points and 9% (my hard money guy is quoting me tomorrow too, but those are his usual terms). I would look for a different arrangement with my partner. 

@Jeff S. Yeah it all is about perspective. My issue is really that it is in a small town so I don't know how many people have the capital to buy a 4,800 sf house there. It is only 30 mins from Baton Rouge though, so that isn't too terrible. 

It doesn't need any repairs though, so that side of it is low risk. 

Hello BP! 

I don't target high end properties, but just got a lead from my website for a property with a value of about $700k. Generally, I buy $70-150k houses, so this is a bit of uncharted territory for me. I was wondering if anyone flips these, and if they do, is the formula the same as for lower end properties (70% of ARV minus repairs)? I would basically just wholetail it since the property looks great. Complete with a tiki bar, pool, game room, and everything else you could need.

It also is in a small town north of Baton Rouge, Louisiana, which is part of the Baton Rouge metro area but is outside of my normal footprint. I hate to throw a motivated seller lead away, so any advice would be appreciated! 

@Andrew Syrios How do we get to party with you and the other big dogs? 

Hello everyone! I've been waiting for RE conferences to come back for a year! So I'm very excited that BP decided to do it an hour from my market. Can't wait to meet all of you and I wish everyone success in these next couple months. I have two houses under contract as well as am working on a seller financed fourplex deal, and am looking to take investing to the next level after the conference!

Hi Stephen, I am in Louisiana too and used GMFS for a single family. 70% LTV 4.25% 30 year fixed on a cashout refi. I haven't tried a duplex, but they wouldn't do a fourplex for me.

@James Wilson I invest in BR too. What are you trying to do? I'm mostly BRRRR but probably going to start doing some flips too.

@Chris Howie usually it is a combination of points and %. Last one I talked to was doing 8.99% with 3 points and around $1500 origination fee. It has to be a good deal for your numbers to work with hard money.

@Joshua Wofford hi Joshua, I invest in Baton Rouge, LA and have found it to be a pretty good cash flow market. You do have to know your areas though, but you can mostly figure it out based on comps.

I stay away from the $0-100 ARV houses because the tenants will be more work. For single family my bread and butter is brick ranch style 3/2s with arv between $130-$200k that I can get for 70% of ARV minus repairs (or close to that). They rent for $1300-1800/month in good condition.

@Steven Jones This did happen to be the only good deal from the cold caller. It was pretty expensive to keep him going and I think if I did more driving for dollars I would have had a higher ROI, but with cold lead lists it was a bit of a waste of money. This one was just an inherited property that had a relative living there. The relative left and the owner didn't want to do the work to get it rent ready.