All Forum Posts by: Will Barnard

This Wed, 12/8 is in 2 days. I can probably make that happen but it’s short notice. I would need confirmation of who/how many will attend to set this up. It may be best to create a meetup.com on line to have everyone register.

Once a month is good.

You will not get any tax benefits from your LLC and as far as liability protection, there is nothing to protect when you are the lender only and have no ownership of the property or anything to do with the construction/rehab. So you are better off lending from your personal name.

As to a license, you need a license in the state in which you intend on lending only if you are intending on charging above that state’s usury limits. Each state has different usury limits and you are exempt if you are licensed.

I highly encourage you to speak with your CPA/attorney regarding the use of an entity and if it is right for you as well as the legal docs to protect you (deed of trust, promissory note, personal guarantee rider, and all other disclosure docs you should have for the state you intend to lend in).

It takes effort, systems, and a lot of networking to find real flip deals. If it were so easy, everybody could do it. The difficulty is what makes the deals profitable/possible. Driving for dollars, website with SEO, networking at events, auctions, telling everyone you know or come into contact with what you are looking for, making relationships with agents, wholesalers, and other professionals, direct mailers to potential motivated home sellers, etc. There are many ways, you will need to find what works best for you in your specific market.

 Regardless if you decide to keep it or flip it, now that the inspector has issued the order, you need to cure it so have him over and give him the walkthrough explaining everything you did, perhaps show invoices from contractors (or at least scopes of work completed). Next time, pull permits for heavy rehabs like this one.

 Dan provided great input above and I agree.

As to this comment, I am sure it is not correct. Cities cannot make you add parking if you convert an existing garage under the CA new ADU laws so long as you meet public transit in area requirements so you should be able to convert your detached garage to ADU without having to build covered parking.

Sure, lots of people lose on a flip. I have lost 6 figures on flips and that is no fun but part of the business if you do it full time for a long time. Anybody in this biz who has done it for a long time and many has likely had their failure deals. Rather than looking at the total costs of my example of $500k+$125K vs $100k + $10k, it is most important to look at what the final return % was of profit. I personally don't work in a space where I would be making $10k-$20k per flip, that is too low for me, but on a return % basis, that could work with small investment amounts.

Point is, flipping is a viable strategy but it has its ups and downs on a number of different levels so investors should really know what they are getting into and plan to mitigate risks as much as possible.

Central system will likely bring you the higher net perceived value. Mini splits can come in ductless or ducted. Speak to your local HVAC professional about your options and do a side by side comparison on price and efficiency. That way, you can make the best decision for your specific property.

As others stated, not enough info in your post to answer your question. Townhouses and condos have HOA fees and rules you must follow. That can cut into cash flow and they typically appreciate slower than their counter part SFH.

YOu should ask yourself what your goals and needs are first. Do you want cash flow for income or do you want to wealth build (appreciation) which can be market appreciation of forced appreciation through value adds.

REO - bank owns the real estate so they will go through their steps to getting it on the market (MLS with an agent). Foreclosure means several things to several people. Pre-foreclosure would mean that the homeowner is somewhere between having a Notice of default filed with the county recorder's office on behalf of the lender (this is a public document) & the last day before the court house steps auction. AFter the NOD comes the NTP (Notice of trustee sale) which means the homeowner is at a much greater risk of being foreclosed on since they have not cured the NOD and the trustee sale date at the courthouse steps is closing in. Both NOD and NTS filings are public record and can be obtained at your county recorder's office. Until it gets to the court house steps, the home has not been foreclosed upon. If nobody bids above the bank's set minimum bid, then the home goes to the bank and that process to get to the MLS begins.

Back in the day, the asset managers controlled the REOs and with the right relationships, once could get to them before they hit the MLS but the rules changed several years after the last housing crash of 2008. Hedge funds and big players buy "tapes" of REO properties and sometimes will sell off some and keep some.

 From a quantity of closed leads standpoint, looks like you are killing it. I don't know the numbers behind each deal but if you are selling to flipper investors, they obviously think the deals were worth buying so congrats. Too bad you don't do this in my area here in So Cal, I would hire you in a minute to get me 10% of that quantity, let alone all of them! Deal flow is difficult here and price points much higher, plus there are a thousand wholesalers for every good wholesaler here.