3rd home- classic Brrrr take away
Purchase price: $76K
Rehab estimate $35K
ARV - $159K(across the street,
very solid comp!)
How did I find it?
Consistently checking Facebook investor group for wholesale deals.
Put offers on 20 houses before getting this one on Christmas Eve when everybody away.
How did I finance it?
Hard money lender.
It took me about a month to find someone like him. (I searched for the right lender before getting started)
He runs no credit and needs no appraisal.
He only asks for address, Pictures, rehab Estiamte and your experience. If it’s a good deal he will fund it.
I prepared a deal analysis power point that look professional.(Thank you @brandon turner for the advice!) and assured him the estimate rehab is accurate (full inspection was done).
Due to the above and Despite the fact that it is only my second deal with him he was willing to fund 95% if the purchase and 100% of the rehab💪💪💪.
Key take aways:
1. Mitigate risk- As an out of state investor buying property based on pictures I wasn’t willing to pay $3K DD. I agree with the wholesaler to put $1K down and $2K more once inspection is done.
Turns out the roof he told me was 2016 was crap and need to be fully replaced. After a week of back and forth I was able to negotiate down from $80K to $76K.
2. Know your area
and keep analyzing deals-When time comes to pull the trigger you will be able to do it with confident and the seller can feel it. I put money down the same day he posted the deal.
3. Build relationship with the right lender before looking for a deal. This is super important and should be the first step before looking for a deal(if you don’t have all the cash to invest).
* The project is not done, I still need to finish Reno and refinance but things look pretty good 👌.
I am less than a year into real estate but feel very lucky to find BP podcast and all the amazing information we are given here.
If you feel like I can help you somehow. Don’t hesitate to reach out!