I am new to the forum and just recently started diving into the BP podcast and community. I didn't think it would happen so fast, but I was driving through a residential area near where I live and spotted a house for sale by owner on a low traffic street. I knew right then and there I needed to pursue the deal. I have since been in contact with the seller and am expected to have a phone call with them soon to plan a visit with my contractor to assess the work that would need to be done. As far as financing goes, I need to look into low and no-money down options, and was hoping to get leads on reputable, trustworthy HML's in the Boston, MA area and any other suggestions on creative financing strategies for fix and flips!
Thanks in advance!
@Timothy Martin Congrats on driving for dollars success!
I'd talk with @Ann Bellamy for lending.
When your rehab is done, talk with me about marketing the property to get top dollar for it.
Pro tip - be sure you look at whether the property is on town sewer of private septic system. A failed septic can run anywhere between $25,000 and $50,000.
Pro tip #2 - be absolutely sure you have a solid handle on the ARV. Call me if you want help with it. This is where a lot of people get hurt.
Hi @Charlie MacPherson Thank you for the quick and helpful response, I will be sure to ask about the septic and to reach out to Ann about the lending.
In regards to the ARV, what is the best method to determine this? I looked through recent sales in the area based on Sq. footage and format and made an estimate on that as well as what Zillow estimates for the average value of the houses of the same format in that neighborhood. That being said I am definitely interested in a more detailed method for calculating ARV.
@Timothy Martin I use actual MLS data - one of the benefits of being a licensed agent.
Zillow's "zestimates"are notoriously bad. Sometimes accurate, often not. In fact, I sold my own home this past December and the day before I listed it, Zillow and Trulia (both owned by the same company) disagreed on the value of my home by $60,000.
Worse yet, I've seen Zillow actually create listings that never even existed. (See 18 Pondview Ave, Scituate MA. Not unit 1 or unit 2 - those were legit. But they smashed them together as one single listing that never existed)
Actual "solds" within 0.5 mile (hopefully less) and within 6 months are best. Of course, you want comps to be as close to identical as possible in terms of sq ft, beds, baths, rooms, acres, garage, etc.
Give me a call if you want and I can give you an idea of the ARV of yours.
@Charlie MacPherson I had a feeling Zestimates weren't going to be a great resource, I have also seen some pretty wild mistakes on zillow. Having access to the MLS for accurate ARV does seem like a great option. There have only been less than 20 sales this year in the area, and from what I could tell only one of them was a pretty great match on the comps.
I could probably give you a call this evening during my commute home between 5-6pm if you are available. Let me know!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you