All Forum Posts by: Bill J Fay

What is your goal with the purchase? Buy and sell? Buy and hold?

Regardless,

1) Make sure the modular home is affixed to the land. 

2) Do some research to confirm these modulars are financeable. If you are stuck with a modular home that can't be financed, you will never find an end buyer.

Start attending local meet ups. You will meet wholesalers, agents, investors, lenders, contractors, and other professionals in the real estate industry. 

Do not take a wholesalers ARV and reno costs whole. At the end of the day, they need to sell the spread. They will send the best comp and at cost reno to justify ARV/reno.

Wholesalers provide a great niche in the fix and flip market but make sure you do your own numbers.

You are looking for a Hard Money loan. These are short term, interest only loans used primarily to renovate properties. The loan amount is levered off the "Loan to Cost" (Purchase price + renovation). 

Find Hard Money Lender's here: BiggerPockets - Find a Hard Money Lender

Be cautious at this price point. You will need to do this in cash, as this is below most lender's minimum loan amount. Change orders can kill deals at this price point. A $5k overspend on budget is a difference in almost 12.5-15%. Make sure to dial in your rehab budget.

Usually, the best deals need the most work. The deals that need the most work won't be approved for conventional financing. You can absolutely purchase off market properties and get conventional financing if it's eligible. Most investors driving for dollars target deferred maintained properties though.

Hi Rene,

Tough situation. What is the current condition of the property? Did the contractor walk out without doing any work? Are you able to get an extension with your current lender? Refinancing hard money to hard money is usually very hard, not to mention expensive. I would think about other options.

1) Extension with current lender.

2) Sell/rent - depending on the condition ?

3) Find a capital partner to work with.

4) Can you use other properties as collateral?

Good luck!

What do the comps look like that are renting for $1400-1500? Since this is a 50% increase, I would think you would have to have a dialed rental unit. Depending on the comps, a good use of money is having your bathroom tub/tile surround resurfaced. I would also recommend replacing the toilets, replacing the kitchen appliances, and painting the cabinets. With that being said, make sure the level of work matches comps that are renting for the return you are looking for.

When flipping, I always recommend doing a sewer scope up front. This along with your roof should be one of the 1st items explored. If you catch these at the end, they can turn a successful flip on their head very quickly.

You have some great advice to your post already. 

I would suggest having a backup plan in case your flip cannot sell. Do you have the funds to refinance and keep as a rental? You will only make as much as someone thinks the ARV is worth. Having a backup plan will help you ride out a bad storm.