All Forum Posts by: Zachary Curry

What you need to know about 203(k). It is a lot more than an inspection.

FHA Gov 203(k)

You have a bad realtor. (Yes I said it, partial information is worse than no information) You are a dream come true in this situation and by law if you present an offer in writing he has to present it to the seller. Now if the seller does not want to consider it than I apologize to the realtor.

Ok, yes you will need to have a full review, you will also need to have a third party consultant (they have to disclose their relationship to you and the transaction). I HIGHLY recommend you use the site above and click find consultant. Call one in your area and get the full information you need.

Everything happens for a reason and if this deal doesn't work out, now you will be much better prepared to approach another one with your consultant in place.

I started compiling a long explanation but what you really need is to create your own tools. Like I have since this question has been presented often. I wrote a simple program using excel as the interface to do exactly what you are asking. It is combined with another program that aggregates the labor costs and remodel costs on a worse case basis dependent on the information you supply. SFH Deal Review On the page click SFH.Review; Open; Enable Macros. Hope this helps.

And remember when the fisherman were asked have you caught any fish they responded, "Not yet"

Knowing eventually with time, and the right tools anything is possible. Don't rush into anything and enjoy the process. Good Luck!

Yes. FHA does not constrict home owner limiting your ability to encumber the property. It merely limits your ability to use FHA products to facilitate investing. In fact you can have two FHA mortgages if you are forced to relocate for reasons other than work.

Also a 1031 exchange will be able to provide more detail.

This is an admirable goal. FHA Gov Website This is the basis for almost all loans.

Mortgage backed securities since Dodd Frank have been altered in such a way it is no longer viable to provide "loose" mortgages to borrowers. So this means credit worthiness is a crucial component on the secondary market which helps ensure originators qualify their borrowers.

Also below 620 is subprime.   

After traditional lending you enter into the hard money, bridge loans, etc but these are done more on a margin basis after evaluating risk. As an accountant I am sure you are aware of Corporate Financing is much different from a mortgage which is what the hard money principles follow. These high interest rate products calculate risks. The larger firms often calculate with a VAR model to produce the credit spread acceptable for their transactions.

I hope this helps!

This is a personal belief. It doesn't matter if you work a 9-5pm or you are an investor. It is just a little more important as an investor to have and maintain discipline. Which in most cases is how people became investors. It is said we should experience life with abundance. This also entails setting a portion of profits for good works. 10% for local charities, churches, etc. You should always take a portion and put in savings for future transactions, and remove your initial investment capital with a three year cost of capital allotment (meaning in three years due to inflation money is worth less so you should add a premium to ensure you still have your working capital) then after that the sky is the limit.

I have not built a home in California, yet who knows what the future will bring BUT...

On my website I have a program its a excel spreadsheet and it interfaces with a national builders cost calculator. So it will ask you state and zip code and questions about building grade attic space etc. The calculator will give you the labor estimated labor costs and material costs based on your criteria. The part of the program then takes your deposit information, estimated rent costs, holding costs, when do you plan to sell, etc and presents a full breakdown monthly and provides your estimated earnings. Click Here Then click SFH.Review; Open; Enabled Macros.

Great question. The contract should be constructed after evaluating the market, the home, and what price you are trying to achieve. The market will dictate the length of time necessary. It is your responsibility as the expert for the home owner communicate this and to provide the time period necessary in the contract.

It is a contract an agreement between two parties, it could be 90 days, it could be 6 months it is a question of how long will they agree too and how long will it take you?

Also finding deals. When I first started I went door to door and delivered flyers myself, it wasn't until later did I learn to simply staple a rubber band to the flyer and make it a door hanger. Starting out this is inexpensive and effective. It also helped me learn neighborhoods and to meet local residents.

A little sweat equity goes a long way.

Contact directly.

I have built a contact list of cash buyers, investors, and flippers. Sometimes those buyers hold the properties.

One of the ways to locate these clients are to research your local clerks office. Search all special warranty, Sherriff's or foreclosure liens (different areas call them different things). The deeds should show a transaction from a bank to a buyer. Once these are sorted you can discover the top cash buyers in your area from foreclosures. Then contact them directly.

This is one of the methods I use to locate clients. For my area I wrote a web scrapper program that aggregates the information into excel for me.  

I agree to a certain extent.

The story goes there was two lumberjacks one older and one younger. The older had records of trees cut down and a reputation unchallenged. The younger finally reaching a point he felt confident to challenge proposed a test. They took one entire day to compare who could cut more trees.

The older lumberjack took a 15min break every hour, and the younger worked straight through and look over and saw the older taking breaks and thought for certain he would win.

At the end of the day they counted....

The older lumberjack had almost double the trees cut down. The younger couldn't understand and ask, "but how did you do so much more with taking breaks I worked so hard and never stopped?"

The older lumberjack said every hour I took 15 minutes to sharpen my axe.

Understanding markets, and learning new ways to leverage investments is never a bad idea.

Also the one who made the most money in the gold rush was not the miners rather the shop that sold shovels.

@Account Closed

Firstly congratulations on the growth of your company!

There are seperate considerations for commerical kitchens, my intial background was consulting and within that was hospitality including restaraunts. Commercial space is like legos, easily transformed and the hoods and most commerical kitchen assets are easily removed.

The kitchen equipment while seemingly priceless must be determined through a straight line deapreciation evaluation, same as a bank.

What are the land comps in the area for the building?

What is the straight line deappreciation value on the kitchen equiptment?

Now evaluate at what interest rates are you able to encumber the two assets (property and equiptment), currently the real estate rates are very inexpensive and if you were to obtain a seperate loan with a higher interest rate that increases your carrying costs which is adverse to your business.

It also alters your ability to pay evaluation when you go for a second location.

Also keep in mind you will have to wait 6 months for your loan to become aged to leverage for a second property.

Also while SBA loans have been very attractive for businesses there are new programs at 4.25% fixed 25 years.

Short answer: Don't overpay for equiptment, if you dont buy it who will and at what price? Also what could you buy at the same price or slightly higher than has a longer life span etc? Try to have one loan incurring one simple compound interest rate for the longest term possible. Evaluate the commerical property as just that a commerical space not as a commerical kitchen as you are being charge for the attributes contributing the kitchen aspect which can be removed.