All Forum Posts by: Cody Mitchell

 That is really good advice! Factoring in a longer holding time for larger rehab's is definitely something I need to keep in mind. Also definitely need to pay attention to the neighborhood. I appreciate you taking your time and helping me here. 

 Good tip! Thank you

 That's awesome advice! I really appreciate it. This will help me build my criteria immensely

My wife and I recently completed two BRRRR deals, and have some capital from the cash out refinance. We would like to get some more capital in order to scale more quickly and know a few good wholesalers, so we were thinking about doing a flip. I'm working on developing our critera for what we are looking for, and I was just curious what are some criteria that would should consider for finding properties to flip? I know typically flippers have a target ARV they like, and that they want to be in all typically at about 70% of the ARV, is there anything else I'm missing?

Thanks in advance!

I'm not a wholesaler, and by no means an expert, so take what I say here with a grain of salt. My thinking on your situation is as a wholesaler you should be focusing on off market deals and not be wasting your time with trying to wholesale homes that are already listed on the MLS. Typically people who have their property listed on the MLS are wanting top dollar, their homes aren't needing much work, and they typically don't have a problem waiting until they get an offer they like. The market is so hot in Texas right now I find it very unlikely that most people who have their home listed on the MLS are willing to take a large discount on the price of their home.

In my opinion a better strategy would be to find distressed homeowners, who either need out of the property quickly for whatever reason (they need cash for something quickly, they inherited the house and just want to sell, etc.), or find properties that need work that the current owner doesn't have the time/ patience to do. Driving for dollars or sending out direct mail may help you find off market deals. But again, I'm not a wholesaler so I could be completely wrong. These are just my thoughts. Hope this helps!

 Of course!

You can use seller financing, or you can use hard or private money. If the property is uninhabitable you won't be able to get conventional financing (through a bank) on it. If the deal is right you can use hard/ private money to finance the home purchase and some or all of the repairs, then do a cash out refinance to pay off your hard/private money. 

As the other people above have said, some DSCR lenders will require an LLC and others will not. The ones I have spoken with in the past did require it. I don't think that previous property ownership is typically required in DSCR loans, I think the main concern is how well the property performs. Not to sound repititive but I would reach out to local DSCR lenders that you would consider working with and ask them their requirements, that way when you find a deal you like you already know what information to give to them.

 That would be my first piece of advice, is to decide whether you want to stick with real estate investing or cash out. If you do decide to continue investing, I would then make a definite goal of what you want in the long term and work backwards. Whether you sell or not, seems like you have great options.

It really all depends on your goals, which from the above thread seems like you are unsure. One thing that I think would be helpful would be to look at the return on equity that the property is generating for you, and use that as a baseline. Do you think you can get a better return on that equity? If so, then sell and get a better return. If you don't think you can get a better return on equity then you should keep it.

Again all of that is not important if you think decide on a different goal. Hope this helps!