All Forum Posts by: Brett K.

Hi Keith,

"own a home" I assume means there is no mortgage. You don't need large cash reserves if you are willing to use the house for collateral. Your good credit and collateral will go a long way. If you don't know who the investor friendly banks are in your area start networking and find out. Go to a BP meetup or a REIA and ask around. You have plenty of ammo to make it happen now.

Good luck.

You need to ask each lender how there loans are structured.  Some will give you better terms after they get to know you. 

First, I'm not in your market so the rules may be different but the result is the same.  There's no way to know for certain.  They must not lie or mislead the public according to their code of ethics.  I'm sure it happens anyway but over time the scoundrels tend to be found and weeded out. 

I'm not an expert but I have an opinion.   Yes, they are money pits.  You need to look at the comps to decide if there is enough margin to do a flip.  Based on your comment that many of them don't look well kept I'd bet the answer is no.  I've seen some flipping in these markets but in my city it died about 10 years ago with the mortgage debacle.  Is it a viable section 8 rental market? You can rent them and get a good return. Otherwise, you need to wait until the area starts to improve before you can flip, do B&B's, airbnb, etc.

Good luck Kyle.

Hello Hampton & Steve,

I hope you guys can make it out to the meetup on the 19th.  It's a great way to get connected with other investors and wholesalers in the area.  PB is a great tool too.  I'm sure you've already figured that out.  

I'd like to invite any locals to a meetup Thursday Nov. 19th at 6 PM.  The location is the 7th floor of Kaden Tower, 6100 Dutchmans Pkwy., Louisville, KY 40205.   

Meet and greet investors, wholesalers, and rehabers, experienced, & never done a deal yet people are all welcome.  

There is limited seating so please let me know if you plan to attend.

203k's are a different animal and your agent may not be familiar with them.  Most agents aren't because they are rare compared to other types of financing.  If this agent seems to be willing to learn, is helpful, and seems knowledgeable, you want to stay put.   They should be able to help you with the before and after values though.  And they should be able to write a competent kick-out clause into your contract.  

It's true that a low appraisal can get you a lower price.  When an appraisal comes back low and a buyer has little or no money the seller has to lower the price so the buyer's financing will work.  It happens.  Sometimes the seller will cancel the deal & put it the property back on the market. 

Good luck.  It's nerve racking but the payoff is worth it. 

The lender will not use your appraisal.  It violates lending practices.

First,  don't bother to pay for one up front.  

Second, relax a little, you're making it more complicated than it needs to be.

Third, your agent should be able to provide you with the numbers you need, to a workable degree of accuracy, for free.  If not, reconsider who is representing you.

Finally, I assume you are using a local standardized contract. I've never seen your local contract but most of them have a kick-out clause if the property doesn't appraise for at least the contract price. On a 203k you are determining two values, an as-is value, and an after repair value. Unless you are in a depressed area your ARV should be high enough that you won't be upside down. Again, that's something that your agent should be able to tell you.

You could write an additional condition into your offers that your ARV must equal or exceed the appraiser's ARV estimate. Then you'll have two options to walk from the deal based on the appraiser's work.

Hi everyone,

this is a BYOC..... bring your own chair.   

Anthony,

You won't be out of place.  These are casual meetings and all are welcomed.  Usually there just as many 'new' investors with little or no actual experience.  Hope to see you there.