All Forum Posts by: Brian Chastain

You would be shocked the amount of leg work that goes into submitting HUD bids and pushing them through to close. Most of the time the gross commission is $1250. For that, your agent has to ensure that the EM check gets to the title company within 24 hrs., all paperwork is filled out correctly (even 1 mistake negates the contract), coordinating the close,....

Bottom line, if you do find an agent that would agree to this arrangement you probably don't want them as your agent.

@Darrin Carey

I appreciate all of the advice. I'm really liking the website, thanks guys.
@Darrin Carey

@Roy N.

True on the cash outlay. I also added in his repair cost of 25k. There also should be consideration of vacancy rate even if it is only a month in between renters. IMHO

...which now I see you added :)

@Eric M.

Thanks for your response! Can you specify "clean and in order"? Obviously having a ready and able buyer for the back end of the transaction is ideal, but are there certain hurdles that lenders such as yourself look for. Margin of Safety?

Also, in regards to the short term hard money, If I were looking for rehabs, what characteristics in the investment stand out as qualities, and what do you look for in terms of risk.

Ideally I am looking to wholesale first to keep my capital out of play until I get to a point where I feel comfortable tying some up on rehabs, then eventually long term buy and hold residential and commercial.

I learned my lesson when I bought my first multi-unit 4 years ago, tied up such a large portion of my capital that I had to watch deals pass me by.

@David Wolf

Based on @Roy N. numbers, which I think are reasonable, this investment would amount to a Return on Investment (ROI) of only 3.75% annually. One consideration left out would be an estimate of vacancy, even between renters, which would reduce that figure. It is a beautiful place, with what seems to be a decent location, but there is little room for error/unexpected expense on this one.

Hi everyone,

New Member from Dayton Ohio. I am an Agent here in the Dayton/Cincinnati area and look forward to interacting with all of the members here. I am interested in all facets of RE investing: Wholesaling, Rehab, Working with Clients, Buy and Hold, ... and whatever else I can learn from you fine folks. I think I have a decent start on the concepts of the business, but am always ready to learn. If anyone has any advice finding/working with transactional lenders it would be greatly appreciated. I have a strong background in Finance/Equity investing, but have found the work tedious and believe that RE investing will lead me to financial freedom and more importantly help me avoid the daily grind of the corporate world. Thanks in advance to the members of BP, the mentorship nature of this site has me enticed. So cheer and here is to bigger pockets!