Hello I'm a general contractor who is being doing rehab for 15 years for investors i mean complete turn key, but two years ago i decide to get in to the business of real estate to learn more about it, im strongly to put my hand in to a good deal, is so difficult for me to find them, and also to run the comps i just think the i need someone to walk me through the process so i can feel more confident of what I m doing, so far i know that im in Right track, is so easy for me to put a rehab estimate together, so please if anybody have the time i will really appreciate thanks
Rental Property Investor · Spring, TX · Member since 2019 · 15 posts · 4 votes
7y
@Fredy Medina, I think we all feel the same way. I am in the process of closing on my first BRRRR and am trying to put in several offers a week. I have been running comps by going to ZILLOW and looking for the SOLD homes and then the RENTAL for the homes around my target. If I am going to put in an offer I send the deal to my lender and they evaluate and pull comps also. I have been very close. Still need to see it against an appraisal but you really start getting the feel to at least come close. I have seen that if it's a good deal you have a VERY short window to determine if it works and make an offer.
I've developed a calculator that figures all the Hard Money loans (based on my lenders rates), cash needed at close and what the total loan will cost me. It then figures the refinance costs and how much money I would need to leave in the deal (if any). I can then adjust the price and rehab budget to see what price makes sense to my strategy. I've also got a Rent calculator at the same time that figures my cash flow, CoC and ROI with only 5 total inputs. It has really streamlined my assessment process, let's me assess every deal I get in seconds for practice and gives me a quick number I can offer the seller.
I liked the BP Calculator but got tired of starting over just to adjust the price or Rehab number, plus wanted to see it quickly and on one page.
Find a good real estate agent who either specializes in investment property, or works with investors and knows how to comp after repair value - they will be able to sort through the overpriced listings and bring properties that will work for a flip or rental.
Rental Property Investor · Spring, TX · Member since 2019 · 15 posts · 4 votes
7y
@Fredy Medina, I think we all feel the same way. I am in the process of closing on my first BRRRR and am trying to put in several offers a week. I have been running comps by going to ZILLOW and looking for the SOLD homes and then the RENTAL for the homes around my target. If I am going to put in an offer I send the deal to my lender and they evaluate and pull comps also. I have been very close. Still need to see it against an appraisal but you really start getting the feel to at least come close. I have seen that if it's a good deal you have a VERY short window to determine if it works and make an offer.
I've developed a calculator that figures all the Hard Money loans (based on my lenders rates), cash needed at close and what the total loan will cost me. It then figures the refinance costs and how much money I would need to leave in the deal (if any). I can then adjust the price and rehab budget to see what price makes sense to my strategy. I've also got a Rent calculator at the same time that figures my cash flow, CoC and ROI with only 5 total inputs. It has really streamlined my assessment process, let's me assess every deal I get in seconds for practice and gives me a quick number I can offer the seller.
I liked the BP Calculator but got tired of starting over just to adjust the price or Rehab number, plus wanted to see it quickly and on one page.
Rental Property Investor · Houston, TX · Member since 2019 · 4 posts · 1 vote
7y
@Fredy, I feel the exact same way. I have however gathered a tone of knowledge simply by combing through BP.
I am looking to increase my portfolio but don't know where/how to decide or find the following:
Best type of investment for me,
How to find good deals
Which areas to target (am I ready/capable of making an out of Houston investment)
Good investment realtors
Good investment lenders
Good landlord insurances
How to run numbers
@Brad Tabor, I've made a few ignorant investments and want to do my homework so I can cross all the "t" and dot the "i" this time around. I feel the same way about the BP calc...yours on the other hand sounds very interesting. I've developed one in excel as well but not as elaborate as what you've explained. Please share your calculators (PM me) if you don't mind.
Flipper/Rehabber · Houston, TX · Member since 2019 · 6 posts · 3 votes
7y
Hi Fredy. I'm new to the business and am currently looking for my first fix & flip deal. I found a few but they're swoop up in the blink of an eye. It can get discouraging but don't give up. I do a number of things to search for deals like driving for dollars (D4$), reaching out to Wholesalers to be added to their buyers' lists, search Craigslist or Facebook or even properties that are listed on the MLS. I'm all over the place but decided on my niche recently - foreclosures and pre-foreclosures. It's a start.