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Norris Frazier
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Closing on 1st Investment property on the 31st

Norris Frazier
Pro Member
Posted Dec 23 2022, 07:43

Bought it @ 15% discount but the foundation, plumbing, and Roof need help: after repair ARV is 15K profit. Plan to Buy-N-Hold, & let it appreciate.

But as a new investor even with Great Credit Hard $ Interest 13.49% and Origination Points at 4%... Needless to say cost of money is HORRIBLE! Looking forward to Refi. 

I am finding it is a dirty and grimy world in this business. Brandon and David you guys need to talk more about the F'd up side of Real Estate. These dirty people and dirty deals, permitting issues and dirty contractors. More bad then good it seems. Never thought I would have to turn on the "Street Me" in legitimate business. 

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Norris Frazier
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Norris Frazier
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Replied Dec 27 2022, 07:04

After all your amazing advice I ran and reran all of my numbers and have come to the conclusion that I will see what the house Appraises for and the new/better offer from my HML, if the numbers are significantly better than I project I will reconsider pulling out of the contract.

Not just one of my Brothers and Sisters in the Bigger Pockets Family but several have sincerely shared your time, advice and expertise. Thank you! I never knew I could find such wonderful people who don't even know me provide such value to my life. 

Thank you So Very Much!

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Replied Jan 3 2023, 08:32

Norris,

I walked away on 4 deals in the past 3 months due to #s not working. The first rule I follow is all BRRRRs got to be a good flip and concentrate on the exit strategy.  

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Replied Jan 3 2023, 09:13
Quote from @Eliott Elias:

Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.

Hi Eliott could you please share details on HML in Texas which does 10% rate?

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Norris Frazier
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Norris Frazier
Pro Member
Replied Jan 3 2023, 20:45
Quote from @Reyansh Budhagoda:
Quote from @Eliott Elias:

Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.

Hi Eliott could you please share details on HML in Texas which does 10% rate?

10% @ 1.5% points, is wild... I got in w/ 11.5% @ 3 points, after plenty of work from every side.

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Replied Jan 3 2023, 20:49
Quote from @Norris Frazier:
Quote from @Reyansh Budhagoda:
Quote from @Eliott Elias:

Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.

Hi Eliott could you please share details on HML in Texas which does 10% rate?

10% @ 1.5% points, is wild... I got in w/ 11.5% @ 3 points, after plenty of work from every side.


 Norris could you kindly share your lender?

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Norris Frazier
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Norris Frazier
Pro Member
Replied Jan 3 2023, 20:54
Quote from @Reyansh Budhagoda:
Quote from @Norris Frazier:
Quote from @Reyansh Budhagoda:
Quote from @Eliott Elias:

Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.

Hi Eliott could you please share details on HML in Texas which does 10% rate?

10% @ 1.5% points, is wild... I got in w/ 11.5% @ 3 points, after plenty of work from every side.


 Norris could you kindly share your lender?


Don't see it to be a problem. I will check with my contact.

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Jewel B.
  • New to Real Estate
  • Lehigh Valley, PA
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346
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Jewel B.
  • New to Real Estate
  • Lehigh Valley, PA
Replied Jan 4 2023, 03:48

Any updates?

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Norris Frazier
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Norris Frazier
Pro Member
Replied Jan 5 2023, 06:33

Email request sent to you

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Norris Frazier
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Norris Frazier
Pro Member
Replied Jan 5 2023, 06:46

Update: 

It Appraised at 200K! 58% Off Purchase... Had to buy it, right... 

Closed on the 30th. Keys in hand... 

Now the fun begins! 

Est: Foundation 20K, Plumbing: 6K, Roof: Under warranty (pending confirmation). Leaves 10K for other. Est All in 152K and ARV 180K (Conservative) I'll keep you all updated.

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Norris Frazier
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Norris Frazier
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Replied Jan 11 2023, 05:33
Quote from @Jewel B.:

Any updates?


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