All Forum Posts by: Ashley Benning

This is the second time I've gotten to the offer stage on a fix and flip property. In my market, Los Angeles, these properties go FAST. It was listed on Thursday, I saw it Friday and emailed a few HMLs to ask for proof of funds letters to go in my offer, and I need to submit my offer tonight and I haven't gotten any letters back. I've already been pre-approved. Aside from predicting the future, how can I change my process so that these letters come in a more timely fashion? My realtor says if the lenders aren't getting back to me on the weekend then they aren't good enough to work with me. But I also know these are people who need a work/life balance. All I need is a letter stating: Ashley is approved to offer cash up to x amount and a quick close on property 123 Main Street. That's it! Any suggestions?

And, @Dave Meyer, I know we have a webinar on "How to Evaluate and Offer on Rental Properties" this afternoon, and I am signed up. But I wasn't sure if this specifically would be covered by @Brandon Turner...

I'm actively seeking small multi-family properties that I can BRRRR, and am wondering if anyone has come up with a good system or formula for minimizing risk of not hitting that 70-75% LTV threshold for the ARV on the later refinance. My understanding is that value on small multis (2-4 units) is based on comps and also on NOI. A few questions:

1. Should I be comparing just the property TYPE (duplex, triplex, quad) for comps, or should I really be looking at price per DOOR within the general category of small multi-family? 

2. How does NOI enter into the equation? If I find comps for ARV that are, say, 30% higher than my purchase and I am also able to raise rents by 30% after renovations, is the bank going to say "You've created a 60% value add on this property?" (Does that make sense?) Or does NOI have really no bearing on it?

3. Do people ever hire an independent appraiser during the inspection phase to provide a theoretical ARV?

I guess I'm trying to read the minds of the banks prior to even making my offers, so I can make sure I don't back myself into a corner later and have to leave money in the property. I'd rather bid low on lots of properties and have a harder time getting under contract but be safe in my refinance than try to get under contract and then be stuck later. I'm using HML for the purchase so the idea of not being able to pull out all my original investment after refi is a bit scary.

Thanks for sharing your experience and advice, everyone!

(Not sure if it makes much of a difference, but I'm looking in the Phoenix metro area, and especially around ASU.)

Nate, I'd like to learn more. I'm looking at doing some flips and BRRRRs in Mesa/Tempe/Gilbert.

Jared, if this is still available I'd like some more info. I'm out of state but interested.

Manolo D. Will do!

Thanks, everyone. Someone else beat us to offer, and the numbers don't make sense to compete. I'm going to let it play out and see how much it ends up selling for (if the sale goes through) so I can get a feel for what the buyer is trying to accomplish. It's an all cash offer, so I am assuming it is another investor. I will be curious also to see how quickly they flip, and for how much.

@Account Closed You bring up some great points! I was factoring batching the walls and retexturing and painting separately (as part of the cosmetic rehab budget), but soil erosion is a foreign concept to me. I'll educate myself on that. Thanks!

I'm looking at an REO property that is a pretty cosmetic flip except for one thing: HUGE cracks in all the cement under the flooring. Apparently this is common in this area as the builder was a crook and did not put rebar in the foundations when the houses were built in the 1960s. I'm going to bring in a specialist to quote the repair work, but before I do that I'd be interested to hear some worst-case scenarios you have experienced. Am I looking at a $20,000 job, or a $100,000 job? Single level slab foundation, 1300 sq ft house

I found TailorBrands.com to be easy to use.