All Forum Posts by: Zachary Deal
Zachary Deal has started 2 posts and replied 447 times.
Post: MTR - How to protect furnished rentals?
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
- Votes 421
Most folks protect the furnishings with a security deposit, would make sure that is detailed in your lease agreements
Post: Flippers - WWYD - What Would You Do?
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
- Votes 421
I would refi quickly and do a rate and term or pull a bit of cash out. The longer you hold at the higher HML rate will really impact your bottom line. You can reevaluate selling in a few years when interest rates improve and more buyers get into the market
Post: Anyone use Furnished finder leads of individuals for an entire house?
#4 Medium-Term Rentals ContributorPosted - Lender
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As others have said FF wheelhouse is 1 - 2 bedroom properties. For larger properties I would focus on Airbnb, Zillow, VRBO, Facebook, and insurance placement companies like ALE Solutions.
Post: Any recommendations on good contractors for a remodel project in Hurst TX?
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
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@Deepak Rawat Could also try making a post in the classified section of BP
Post: Mobile Home Removal Services
#4 Medium-Term Rentals ContributorPosted - Lender
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@Daryn Gardner You could also try posting the classified section of BP
Post: Adding a Second Story to a Home in Fort Lauderdale
#4 Medium-Term Rentals ContributorPosted - Lender
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Definitely recommend reaching out to the city first to confirm what permitting would be needed for added square footage. Also, one thing to consider is if there are other two story homes near by? One thing you want to avoid is making the asset to unique that it is difficult for an appraiser to comp out. This could make it challenging for an appraiser to value and therefore difficult to get a loan against the property (or sell to someone using a mortgage to purchase).
Post: How Are You Covering Down Payments & Closing Costs for Your Fix & Flip Deals?
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
- Votes 421
Quote from @Chris Seveney:
Quote from @Deborah Wodell:
Hey everyone,
When it comes to fix-and-flip projects, the down payment and closing costs can add up quickly. I’m curious how you all manage these upfront expenses. Are you using hard money loans, tapping into savings, partnering up with others, or maybe using seller financing? I'm hoping to hear some creative ways people are handling this part of the process. How do you make sure you have enough funds to pull the trigger on a deal?
Would love to hear what’s worked for you and any tips you have for making sure the funds are in place to lock down a great deal. Looking forward to learning from your experiences!
We have a savings account where we split up into different buckets (from our w2 and passive income) and one bucket is for real estate and when we have enough to acquire another asset we will consider it.
I am not a fan of borrowing 100% of the transaction costs including closing costs as it will be extremely difficult to make money many times on those types of deals. It also could limit your exit strategy if the market softens
seeing a lot of fix and flippers in kc as an example getting crushed due to this
As Chris mentioned getting 100% financing or even close to 100% financing can be really detrimental to your bottom like. As a general rule of thumb it's smart to pay for 10 - 20% of the total costs (purchase price + rehab) out of your pocket and then finance the rest with hard money. This helps lower your holding costs and results in better returns at the end of the day
Post: Fix & Flip and BRRR in the Scranton area
#4 Medium-Term Rentals ContributorPosted - Lender
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Quote from @Abraham Berkowitz:
Quote from @Zachary Deal:
A lot of investors utilize the BRRRR strategy in those markets as there is relatively high rents compared to the value of the properties!
Do you know any people who do flips in those markets?
I recommend posting in the classified sections of BP or joining local FB groups to try and find local flippers in that market!
Post: Fix & Flip and BRRR in the Scranton area
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
- Votes 421
A lot of investors utilize the BRRRR strategy in those markets as there is relatively high rents compared to the value of the properties!
Post: Looking for partners
#4 Medium-Term Rentals ContributorPosted - Lender
- Posts 458
- Votes 421
You may want to post in the classified section of BP to find partners in WA. Also, finding local real estate Facebook groups in the towns you're looking to invest in could be a good idea. When you're in town to visit your rental or for vacation you could set up in person meet ups. If you're looking to do flips or BRRRRs remotely in Austin it's definitely smart to find a local partner for the first few deals so you can gain experience in the market. That will make approval for future hard money loans much easier.