All Forum Posts by: William Harvey

@Preston Gealy I am currently in the exact same situation with a property. It is stagnant and will not move. My suggestion is to drop it until it sells. Move on, free up the debt and get rid of the headache and just chalk it up as a lesson learned. 

In hindsight, where we messed up was allowing the seller to stay in the property much longer than we should have. We went under contract in Feb, didn't close until May (they needed time) and then gave a 1-month rentback. So, by the time we got our hands on the property, it had been 4 months from when we initially analyzed and went under contract and the market had drastically shifted for the worse. 

Moving forward we will not allow anything to "hang" out there that long. Hope this helps! 

@Beth Blankenbicker I agree with @Dan White....I would absolutely nail the ARV and lean to the conservative side. Especially in the current environment we are in with rates in the 6's. A lot of buyers are in a "wait and see" mindset so if you blow the ARV, you could end up in a break-even scenario or even a loss.

With that said, if you feel very confident in your ARV estimate and your analysis points to it being a great deal, then I would move forward and fire over an offer!

@Johnny Tran My first flip was a property with knob/tube panel and I believe we had less to do than the scope you laid out and our price was around $4k. So, I would agree that this price sounds fine, especially if they are reputable. 

We had another quote for $8k for the same job, so I think you are definitely smart to check if you are paying a decent price or not!

@Parrish J Anderson I was in a similar position when I went to do my first flip. I had only bought a handful of properties prior that were completely turn-key, therefore I had little knowledge/experience in the contracting world. My suggestion based on my personal experience would be to find a fellow investor who is more well-versed and experienced with construction. They will have a list of contractors that they have worked with in the past and will be able to know which ones to work with and which ones to avoid.

My partner had a remodeling background, but had never done a flip. For him, the renovation aspect was a piece of cake and he could do it in his sleep. For me, the lending/financing side of things was a piece of cake (I was a mortgage loan officer at the time) and was more daunting for him. So each of us had a piece of the puzzle that the other was missing. We ended up teaming up, did that deal, it went great (even with a bunch of rookie mistakes we made) and fast forward 3 years and we've done a bunch of additional flips together and now do this full time. 

Hope this helps! The tl;dr is to find a partner that understands the aspect of the business that you are struggling with and team up. 

@Anna Kate Kingston I am happy to walk through a deal analyzer with you on Zoom if you'd like to do this! Let me know if you're interested.

@Tyler Dietrich we could likely add this feature pretty easily to our product (DealSimple), which was made for quick deal analysis. Is this something you'd be willing to test out and provide feedback for? If so I can set you up with a free account. Let me know! 

@Wayne Hampton I plugged this into our cloud-based analyzer and here is what a BRRRR might look like. Seems like it'll cash flow and isn't a bad deal at all. I didn't have all of the variables so this might be off, but you can take a look and tweak. Hope this helps!

@Victor Olvera Definitely looks like a solid flip if you can snag for that price. We have our own cloud-based deal analyzer that I used (I'm more familiar with it) and here is the link. I used most of your numbers but didn't fully understand the breakdown so I just added a hard money loan at 2/10. I'm a former loan officer and I'll caution you that 203k loans are a major pain and the cost savings might not be worth it. Having a good hard money lender would be a wayyyyy simpler process to get it done.

If you shoot over the rental assumptions and what you think you could rent the units for, I can plug that in and show you what it might look like. Our analyzer does BRRRR's and rentals as well. Either way it sounds like this is a compelling opportunity! Nice find!

@Eloy Garcia I would begin by talking to a lender you trust to figure out that piece of the puzzle (rate, points, LTV, etc.) Once you have that variable figured out you just need to know what the other costs will look like. The lender should be able to assist with all this as well, especially if they have investing experience personally. I'd try to find someone like that. Once you get a good understanding of that, then just plug everything into your deal analyzer as opportunities come about and you'll figure out what prices to make offers at. Hope this help!

@Eloy Garcia here is my analysis, this is from a deal analyzer I created that I'm more familiar with. I'm not super in tune with rates currently, and on investment properties they are always all over the place, but I estimated 5%. I recently refi'd an investment property with a community bank at 5% paying 1/2 point fee. Hope this helps!