All Forum Posts by: Kurt Schmid

Thanks for the input.

They use brand new homes that are under builder warranty. My understanding of that is things are new so they shouldn't break but if they do the builder has to fix it.

As far as the lease-purchase tenant trashing the home. From reading Andy Heller's book it seems that lease-purchase tenants tend to take better care of the property so long as they expect to buy it.

I'd rather invest in my own area but I live in California and cash flow is scarce.

Thanks again for your comments and any more are appreciated.

Has anyone dealt with John Speas or his company Integrated Equity?

They operate in North Carolina I think. Their program is basically buying homes from builders at a discount then lease-purchasing them at positive cash flow and a profit. They help ensure the tenant exercises the option by enrolling them in a credit repair program.

It seems like a good way to invest conservatively at a distance. I hope someone can help. Thanks.

I have heard from a couple different people that if you want to rehab and retail, condos are not a good idea. How much truth is there to that? Being in Southern California, condos are at a much better price point for me just starting out. I realize there can be issues with the HOA.

I would love to hear from others' experience on this issue. Especially if you have flipped a condo in Orange County. Thanks.

This is the kind of input I am looking for. Thanks. If other people are finding 60-70% in So Cal then I will too, I just need to work harder. I have been looking mostly on the MLS and REO SFRs. Ideally I would like to find a wholesaler in Orange County to work with. Specifically Costa Mesa and Huntington Beach. Are the coastal communities a good or a bad idea? I'm thinking good because demand for housing in these areas has always been high. Prices are coming down but I don't see them plummeting. Any thoughts on this?

I have seen alot of hard money lenders looking for 60-70% of ARV. Meaning they will lend up to that amount. I was wondering if anyone has heard of a company that specializes in Southern California where it is unlikely to find those properties. It seems like 80% of ARV would be a pretty good deal here. Where would I find Hard Money lenders that would go that high?

Luckily my family and I live too far away from the fires to be directly affected. The poor air quality has canceled most outdoor activity for the UC Irvine Athletic Dept. though.

I do know some people who had to be evacuated but have since returned to their homes. I hope everyone is ok.

I'm curious if there is anyone on these boards who is flipping properties in this market in Southern California. I realize your exit strategy is becoming more and more important the worse the market gets. I'm especially interested in hearing what things you do much differently today as opposed to a year or two ago.

The areas I am especially interested in are Orange County. Costa Mesa, Irvine, and Huntington Beach in particular. Thanks for your help.

Generally the terms on a loan for a non-owner occupied house won't be as good as your primary residence. Putting 20% down will help offset that though but you can still expect to pay either a slightly higher rate and/or points depending on your lender.

Has anyone been to redfin? I have called a couple agents with properties listed on the site with mixed results. You can search for fixers but that doesn't mean it's a good deal.

Does anyone have any info to impart about this site?

Thanks for everyone taking the time to put all your thoughts down. They have helped me quite a bit. In my meeting with the REO agent he did ask me some questions that were designed to see if I was a serious, capable buyer and I believe I had the right answers.

My main source for private financing won't be available for 4-5 weeks. Is there any disadvantage I can't see in making him aware of this? I know the key is to establish a reputation as reliable so I want to be able to come through on a deal with him so that I can establish that relationship. As long as the numbers work ofcourse.