All Forum Posts by: Anthony Testino

Legal and illegal money. Where do we draw the line or where should the line be drawn for us? I have plenty of friends using money to fund their projects and really, have no idea where the funds are coming from. Lenders say they do this and do that for a living but at the end of the day, cold hard cash is cold hard cash, is there a cold hard end? Funding projects with Bitcoin, now trending and if you aren't on board than your drowning. Who here has invested with an online currency and is it the future of flipping?

On a lighter note im sure its within your contract, its lawyer time. As Kramer would say "gitty up"

Sounds like presa Canario not an American Staffordshire bull terrier, politically correct. Pitt bull isnt even a real breed, its just a name people use that aren't educated or dont have a clue where the breed even came from. These dogs were used in the pits back in England as bate for the Bulls. I understand this is "Bigger Pockets" just educating. 

@Aron Klatt 

I have never in 15 years heard of a full rehab costing 20K. The minimum rehab should be 80K. I hear people all the time say they can do rehabs for 60K and I walk in to see their work or what they accomplished and they half way demoed the job and didn't even replace all the plumbing or electrical. I rather pay 65K for a house and put 125K into it and sell it for 385K. Its easier for me to put out 65K to obtain the property and then have investors put up the rehab cost. I know each situation is different for each person. Most investors want to see the house cost more than the rehab, for me its about what I want not what anyone else wants. At the end of the day if I think a project is going to work and make a nice profit im all in. I find too many times investors will complain "this project has no comps" when the block has 3 houses worth 400K but its not enough or "that rehab value is to high there is no profit" when there is a 80K profit margin. 

Spoke with many people on here over the last few months. I have yet to hear any input on thoughts for what works out better, what makes more profit, what makes loans easier to obtain when it comes to flipping a house in Philadelphia. If it worth buy a property that is 100K with a rehab value of 85K or a house that is 85K and the rehab is 100K, both have an ARV of 380K in the end. Which do you choose and why?

@Irfan Raza  There are definitely those guys in here that are new trying to build their "clout" up on Bigger Pockets and cant even hold a conversation or just became a realestate agent and think they are the next Forbes Agent. I went and took the realestate test just to have it under my wing but that's another story. I do want to talk to you more about who you use, their rates and your recommendations on lenders. There are time I have 80-150K tied on building houses for my construction company that when it comes to flipping I dont want to put more money out than I have it, if I dont have to.

What some people dont get is that its great to be liquid but in situations when you have to be liquid. There are reasons loans were created and uses they are intended for. My Uncle flips for a living and he barrows money from his brother in law. Roughly 250K every 9 weeks. His flips only return him 9K but he pockets roughly 60K during the rehab, his houses only cost him 50-60 and the rest is rehab cost, which whatever's left he pockets as well. He pays no interest on his loans and splits the profit with his lender once the property sells. Its almost imposable to find a lender like that. In my case I dont mind closing cost, but I want 20-30K upfront, and that's it.

@Nghi Le I totally agree with you. At the end of the day you never want to have your own money tied up. I'm not sure why there are people out there rich or average who love getting these high interest loans, or dont mind putting out 40-100K out of their own pocket when there's people out there who will let you use their money over a period of time with a little pay back on the interest. I get it, "well if you have it you use it" or "well no body is going to hand you money" but, there's thousands of books out there on how or why you should use others money to gain freedom and profit, which quite a few of them are books produced by bigger pockets. 

I also seen that you were starting a loan business. While reading your profile it says that you are launching the end of this month. I would love to hear more about this program and what it actually going to entail. 

@Omar Khan I’m guessing you haven’t read everything I wrote thoroughly. No ones having a hard time letting anything go. I am currently building in South West Philadelphia, South Philadelphia and Brewery Town out of my own pocket. No need to quote me saying “100’s of houses” since I’ve been building houses at age 16 with my grandfather, now 33 years of age I have a few houses under my belt. Again, no ones “track record” has anything to do with the price of tea in china. Im not even sure what the point is your trying to make here that someone else didn’t already try to mock or insult me with. P.S Bill Gates couldn’t get the money to purchase DOS from Kildall so he reached out to IBM and asked them if they would make the purchase at $25,000 “peanuts” and set up a licensing agreement which they said no and than turned to Microsoft for $50K making him a part of the company and founder of now known MDOS than Q DOS. This was prior to the software even being a “proven project” since or even reliable. The software was t anything until after Q DOS became an OS type platform. Any approach can be sophisticated to any business endeavor. Not sure how dropping out of college and basically robbing a man for his software at $50K for another company is“sophisticated” but I hear you bud. Again, my questions are to help others not just me. I am here to learn and gain knowledge not be ridiculed and debate over what im writing.

J Scott I totally agree with me financing my self part. My thing is, if you need a loan for 205K and the property your buying is valued already at 185K as is but will have an ARV of 380K why not fund the project? Ive came across and even recently found properties that are selling for 60-150K and worth 100-180 K as is. If theres only a 10-15 % difference on what the houses real value “resale value” is Vs the 205K loan your looking to get financed for purchase and rehab, why not fund the project, give the draws up front and use the property as collateral? Im not a lawyer, which are who heavily operate and own the hard money industry (for the most part). I just think its hard for a lot of others out there looking to start rehabbing. You can have a 650-725 credit score and still Not be approved. You can have the entire deal done ready to buy, the hard lender already approved you and funds are being disbursed by the bank. Still, you need at least 25K for closing and to get that portion of the project completed to the draws guidelines in-order to get that 25K back or 30K back, however you have it laid out. I get it I can just put my own money out. In reality I dont want to put my money out and theres those that have no resources to large amounts of cash, loans, etc. Some of the most wealthiest people on this planet became wealthy (in life and finances) by using their brains and other peoples money. Just to mention a few Bill Gates, Mark Zuckerberg, Amancio Ortega, Bloomberg and they make up 50% of Americas income. Im not saying I want to be them, I just respect where and how they did and became what they are. I feel that I can utilize their strategy in my everyday life. If I can see this through I may be able to help others who can not, and thats my goal, always to help others.

@Alex Bekeza Haha, I was also playing. Really appreciate the thanks.