All Forum Posts by: Cornelius Charles

My partner and I are new investors in Ventura County and have found a wealth of knowledge on this site, thanks to people like you willing to share what they have learned over the years

Welcome Fred. My partner and I are new investors in Ventura County.

Hey Vincent. I am just starting out myself. Welcome to BP. Lots of good information here.

@Kenneth Ziembo

Hello Kenneth. I will be contacting you to discuss any opportunities. Welcome to BP

As a newbie, I would be most interested to learn how to estimate repair cost. Video of a walk-through of an actual property would be awesome.

Thanks Aaron. That is interesting to know.

Hi all. I’ve learned about the 70% rule when purchasing a property to rehab from multiple sources. This was going to be the rule of thumb that I used when doing a quick analysis of a deal. While trying to expand my contact list of buyers, sellers, etc, I have come across a few wholesalers who have properties they are trying to sell to investors. The price they are currently offering the properties would mean that an investor would be purchasing at between 80%-85% of ARV (assuming their figures on repair costs and comps are accurate). On the one hand, I know they say that all wholesalers are not created equal and that you have to weed the good ones out from the ones who don’t really know what they are doing. But on the other hand, I have read somewhere else that it is not out of the norm for investors in Southern California to pay in the 80% range due to lack of deals and fierce competition. I would like to ask any investors in the area if they try and stick to the 70% rule, or if they find themselves paying more than they would like to. Is 80%-85% par for the course in our area when it comes to buying from wholesalers? Appreciate any feedback. Thanks all.

@Freddie Chipres

Welcome to the site. My business partner and I are new to real estate investing as well. Found a lot of good information on this site and I have tons more to go through.

Thank you all for the comments. I do have some cash to bring to the table myself, but depending on the details of the hard money loan and the price of the property, who knows how much the gap will end up being. Was just wondering if there were any secrets out there that I haven't yet learned about.

I will do some research on GAP funding and see what I can find. I also like the idea of partnering with another rehabber. That may be a way to find a solution for a potential funding issue while gaining valuable experience at the same time. Thanks again.

HI all. I have a question about securing funding for your first couple rehabs. This question may be more geared to investors in California, so I can compare apples to apples. My partner and I are in the process of researching hard money lenders. From what we have found so far, the average amount they are willing to lend seems to be between 60 and 80% of purchase price (some include rehab costs, some don’t). How were some of you able to fund the remaining amount that was not offered by the hard money lender? Even if we were to find an awesome deal and a lender that was willing to offer us 80% of purchase price + rehab costs, the remaining 20% definitely is not chump change in California. Thanks everyone.