All Forum Posts by: Jonathan C.

I live in the Washington, DC area.  I did my first flip in a county with median price point around $450K.  It was obvious as I was doing that one that it would have taken way too long to build up to full time investor volume staying in a high price point area.

After that I switched to county with median price point $130k.  Took a good couple months of driving around to understand the area and start to get a feel for it, but it was switching to this county that allowed me to eventually go full time a couple of years later.  Never would have happened if stayed in high price point area.

I'd suggest finding low median price point counties near you and focusing there.

Couple other ideas:

I call every 'we buy houses' sign I see when I'm driving around and ask all of them to put me on their buyers list.

If you do a google adwords campaign for 'we buy houses' a lot of them will find you because that's a strategy wholesalers use for finding buyers.  However, I have found most of these are the fresh out of the seminar type who have no idea what they're doing, but I'm sure they're not all like that.

Sherwin Williams Perfect Greige is my jam

If it's a clean cut, it's probably the bank removing water damaged or moldy drywall.

If it just looks like it's been 'smashed' out then it's probably someone taking the pipes.

Either way, beyond one more thing to fix, shouldn't really impact what you're trying to do with fixing and selling.

OK cool.  I will call a bunch of other lenders and find one that doesn't have this overlay.  

I guess I've heard contract date from enough lenders where I took it as fact.  Glad I asked.

Thanks

@J Scott thanks for the response.  My lender is saying the 90 day rule begins on date property purchased and must be 90 days until the date the contract is written, not the closing date on which property is sold.  

Sounds like that is not correct, but just wanted to confirm.  Thanks

Hey-

What are you guys doing with this terrible anti flipping rule being back into effect this year?

My houses are generally done in 2 months and now I'm in the awkward position of having to decide whether to:

A- list them now, letting agents know won't qualify for FHA financing, and hope I can get conventional/VA buyer

B- have them sit vacant for 3-4 weeks and then list them when can qualify for FHA financing

I'll also mention these are lower price point properties (under $300k list) so the vast majority of buyers are in fact FHA.

What are you guys doing with this?  Sigh 

Jon

When I first started wholesaling and didn't have the cash I partnered with an experienced investor who did have the cash in her bank account. She allowed me to make the offers in the name of her LLC (so it matched the bank statement).

You can buy lists of multi family properties from listsource.  They have decent customer support as well so you can call them up and ask them how to pull lists of the types of properties you're interested in.

Since the cost for renovations are going to vary so significantly area by area I've never found a generic rehab cost calculator to be very effective.

The best thing to do is get 'real world' information by getting bids from 2 or 3 additional contractors and seeing how they compare.

If you aren't sure how to get other contractors to bid, you can get them by finding properties purchased in cash on the MLS and driving to them to get business cards from their contractors, going to Home Depot first thing in the morning and getting cards, and REIAs (for some ideas).