All Forum Posts by: Andy Chu

We started out flipping because that's where you can get enough money to actually buy properties for longer term holding. Once you purchase a home for 150K, that means all your eggs are in one basket. If it takes 3-4 months to flip making 20K-30K each time, in about a year, you will have enough for 2 properties and 4 properties by year 3. However, there is a point of diminishing returns, where its just possible to flip 20 properties a month.

At that point it would make sense to hold onto properties and just flip a couple a month.

Long story short, flipping is a job, holding is investing.

The upside is that most investors don't understand it and it can be picked up at a serious discount. Therefore, you are taking on risk but rewarded much more than buying at a sheriff or trustee sale.

I've never really understood the desire to buy in an area like Summerline which has an HOA, a master plan fee and a Summmerlin Improvement District Bond. After all said and done, it is very common to have those fees add up to about $250 a month.

If this is going to be your second home or primary, then yes, I would say it makes sense. Otherwise, for an investment, you are talking closer to a 6% Cap rate.

The second lienholder needs to approve of the short sale. Typically, the first will play nice and give them $2,000. However, if the second wants more and the 1st doesn't want to give it, then either the seller will come up with the difference (usually doesn't happen), or the buyer comes in with the difference.

The 1st lien position has the absolute right not to allow the 2nd to any money until the first is made whole.

In this scenario, it looks as though the first may be made whole and the second is the one taking the haircut.

Read the statute on how the deed is presented to you. Most of the time, it will be a Quit Claim Deed (The weakest of all deeds). See if there is a redemption period or a protest period. Read it very carefully and know what you are getting yourself into.

The legal expenses depends on how much work is needed.

Are you paying cash or financing? From a flip perspective, I feel the deal is pretty good. Assuming if you have similar numbers to the ones that I work off of. Also, since you plan on living in it, you can get creative and upgrade a lot of things most people wouldn't do because it doesn't add value. If you have the know-how and the time to place some elbow grease into it, I would say go for it. However, if you have a full-time job, I would think twice about doing the job yourself.

The brackets are used to show the sales price and 120% of sales price. It is black and white only and there's no room to argue improvements.

Core-Logic has an AVM (automated Valuation Model) which is not all that great. Its equivalent to Zillow or Eppraisial. However, if you are looking at their BPO services, those are extremely accurate and extremely annoying for a broker to do. I stopped accepting assignments for BPOs from Core-Logic but I would not mind utilitizing their BPO services.

Also if you own a Fourplex or less and live in FULL TIME one of the units, it does not apply.

It's been two weeks . Any updates?