All Forum Posts by: Bryan H.

Partner with a realtor. Get better comps and ARV numbers. Then pass referrals back to them on the homes you sell and were rehabbed. Work a deal to get flat fee listings for your buyers. Everyone wins when you play together.

App is crashing on me when trying mention someone. Which really sucks because I had typed up a long message. Oh well. Happy to have the app.

Thanks Will Barnard. I didn't think they would accept contingencies, but wanted to confirm. Now I know I need to get in there quick and make offers.

Unfortunately for me, I'm not experienced at estimating so I need to coordinate with a contractor and that takes time.

I took a loan out against my 401k for a flip. The duration was less than 12 months and the money was back in the account. I felt my flip would (and it did) get me a much better ROI than leaving it in the account.

A couple of things to think about. You DONT need to pay it back if you leave your employer. If you don't, its considered a distribution and you get hit with the penalties and taxes. That may suck, but you don't need to pay it back.

In regards to returning the money after taxes. If I lowered my contribution to only what my employer matches and waited until I saved up (after tax dollars) to do the flip, I would have missed out on an opportunity. It was worth it to me to take the fast cash, use it and return it when I was done. Now I have paid back my 401k and I have an influx of dollars to use on future projects that I wouldn't have if I didn't borrow against it.

So, depending on your situation, it may be a good idea. I wouldn't use it for long term projects, but in the short term it worked well for me.

John Fedro Jon Klaus It's my first time putting together a business plan so I know it needs some work. Plus I never got to use it as the seller decided not to sell. Anyway, here's the plan http://www.biggerpockets.com/files/361/download

Feedback is welcome.

Steven Johnson Here is what I learned about MHP investing

Traits of a good park to buy:
100% occupancy
100% owner occupants/no renters
city water/city sewer - separate meters, paid by residents
Low rents that can be raised to market rate. You buy off of production not potential.
CAP rates between 8-12% are typical
No extra structures, houses etc on site. They drive up expenses and the goal is to rent dirt.
Park manager lives onsite.

Ugly parks make money too, but bank financing may be more difficult. That's where owner financing is nice.

So, when running my numbers I always take a conservative approach. I've seen people get burned being too aggressive. I've budgeted 6% for seller/buyer agents. Depending on how things go, I may go with a flat fee listing agent and save money there.

Rick Baggenstoss I was able to walk through yesterday with a contractor. I'm waiting on his numbers now. I did forget lawn maintenance & utilities, thanks.

Steve Babiak What number should I plan on? $1000?

Will Barnard I plan on a contractor doing all of the work. The 9 months was used because of the HML terms. I may be able to do better but was calculating based on worst case scenario.

Ned Carey Thanks Ned

Thanks for the explanation Aaron Mazzrillo

Looking to make my first offer to a wholesaler.

I have purchased off the MLS before and included contingencies for financing, inspections, title, etc. Are these expected & normal for wholesale deals too?

Here's my deal broken down, let me know what you think. Am I missing anything? I am looking at 100% financing with HML. Figuring 9 months for hold

ARV $163,000
Minus 70% $114,100
Minus Rehab $30,000
Purchase $84,100

Buy Costs $1,682 2%
Points $3,423 3%
Payment $10,563 12%
Taxes $1,800 $200/month
Insurance $500
Contingency $3,000 10%
Sell Costs $14,670 9%


Investment $149,738
Profit $13,262

Welcome Brian. I'm in the Raleigh area so when you get your wholesaling going, let me know. I rehab and buy for rentals and always looking for a good wholesaler.

Good luck