All Forum Posts by: Bryan Devitt

 I don't know how that would even keep them from getting a place where you are. In MA you can't even ask about that or you'll get sued. In the end, it is a crap situation but giving them 3 months is more than fair. I assume the other 3 families living there are all in the same circumstances too? Did you just pick an apt number out of a hat or you liked that one more? Just curious 

It isn't worth what the appraisal comes back at, that is what it could sell for on the MLS with a broker. Take out closing costs and various fees and they might walk with $200 if they're lucky and the previous appraisal is right and not bumped up just for them to get the loan. This is of course if they want to risk doing that, having it sit on the market for months and getting low ball offers left and right. You however can't offer them anything, because you have no clue what the value is, what the repair costs are and really what it needs for repairs. Unfortunately with the limited knowledge and experience you have, you shouldn't gamble on making a deal without this information. The information is easy to get, but it will cost money to have people with those skills get it for you and in the end, the owner might walk away from your offer and you'll be out a couple grand. It is all part of the learning experience of getting into a new business.

2 points, 9% and $200 for each draw check is what a friend just got for his first deal. Looks like they're coming down quick 

 From what I have heard and the videos I have seen, you can have a $10M house in CA and there will still be rats running through your trash every night. Maybe the trash outside is the issue? The neighborhoods are all picturesque so it isn't like it is just thrown all over. One of the many reasons not to live in that state 

If your friend didn't even want to look at the 3 you picked, there is nothing you can do. He doesn't want to invest no matter what you show him. You'll either need to find another friend with cash or the ability to take a loan against their house or save more to get a HML. I have personally tried to take the tire kicking "investor" horse to water but no matter what, they still won't drink. Then when you pull it off and make a profit, they'll complain that they should have done it, why didn't you convince them and they want in on your next deal. The problem with that is the one they invest in might be the one that breaks even or loses a few grand and you'll be the worst person in history and they knew they shouldn't have trusted you.

It's CA, there are rats everywhere. Podcasts I listen to with very rich people and nice houses complain about the rats going through their yard or making a house in their chicken coupe. I don't get it, but I guess you just get used to them like squirrels 

If you need prices for repairs GW Woodworks out of Gardiner is trustworthy and does quality work. Sound of that sounds scary but without seeing pics, it might be easy. Get numbers on everything and go back to them asking for people you approve to do the work or for them to give you a credit at closing (if the appraisal will allow) so you don't have to pay for the repairs out of pocket. If the numbers don't work then it sucks but it is what it is. Eventually you will be able to see the expensive stuff without calling someone in for an inspection, it is just a matter of getting the experience with trial and error 

A HML will want you to put skin in the game too. I don't know anyone that would be willing to led a newbie 100% on their first handful of deals. Either learn what you're doing before you do it (LOTS of research and learning your numbers) so you can convince your friend that you're not going to lose their money or save enough to have 15-20% of the purchase price. Most HML will loan 80-85% of the purchase price, 100% of the rehab with a total not to exceed 70-75% of the ARV. At the end of the day though, if you can't convince your friend, then you don't know your numbers good enough to get a HML. It isn't as simple as "hey, I need $200k" "ok, here's a check"

The poster said he was going to start an LLC to get a bank loan because he didn't know anyone that did hard money

Unless things are drastically different there than they are here, you can't just get an LLC and get a loan. The LLC needs 2 years of tax returns to prove income to get a loan, just like a self employed person. Have you ever done this with someone else or for someone else? Your best bet is to find a local meet up, find a successful flipper that does what you want to do and ask them for a job or to help them for free to learn the ropes. If you get paid, have the LLC formed and have them pay the LLC for your work and you will get paid through the LLC as a pass through. You might also find people there with cash that are eager to invest and if you know what you're doing you can start instantly. If you don't know what you're doing you can still start, you'll probably just lose money until you learn the right lessons.