All Forum Posts by: Dan Krupa

@Kayla G Gilchrist that applies to agents only. Lots of people wholesale in MO and KS. I buy from them sometimes. 

@Morgan McRae we have done 100+ flips in Clay and Platte county, and a few in Jackson. That isn't correct, per se. All serious flippers and builders have a formula or min profit margin too. If the numbers don't work for us we pass. You can usually get OOS investors and new investors looking for a buy-and-hold or cosmetic rehab to pay more. A complicated flip where we carry more risk (structural issues, total gut, busy road, iffy location, etc...) we are not going to buy it unless the numbers work for us too.

@Samuel Nuckles @Audra Luther is right. You could qualify now. A MF you live in is the best way to start. I did 13 years in the Army and then medically retired four years ago. We are killing it now in Clay and Platte county. Love that area. Be ready to work hard, read a ton, and take some chances. Everything will work out in the end if you simply do that. 

@Alex Bontz people who are crushing it and learned the hard way probably aren't going to see this and most importantly they will not spend their time mentoring someone they don't know. Time is the most valuable asset we have. You need to find someone doing exactly what you want to do and offer them a service or value. Become part of their time. Make the friendship organic. Help them grow and learn for free. This will springboard you a head and save you years and ten of thousands of dollars. But you need to be willing to give back first. 

@Zach White also you won't get anything with an FHA loan in this market, unfortunately. Not a good BRRR deal at least.

@Zach White you and most investors are completely missing the boat on Clay and Platte. I could go on and on about the massive appreciation in those two counties vs the other three in KC, the great schools, the path of progress, low crime, high rents, etc... But all this stuff is readily available. Most people like at this moment in time and decide to invest. You should be looking five to 10 years out if it is a BRRR. You want to buy in appreciating neighbors. If you had seen that area in 2014 compared to now you wouldn't be doubting investing up there. That is personally where I own all my rentals, SFH and MFs, and our commercial building.

@Alexandra Sales is the basement a walk-out or does it have egress windows? If you yes make sure you fully finish it. Your value for both rents and ARV will go way up. If there is not egress just do a minor finish, by that I mean LVP the floor, sheetrock the walls, spray ceilings black, and add some lights. Do not try to add a bedroom if there is not proper egress. That is the best way to get in a lot of trouble. Hope that helps. Diligently screen your contractors too. There are a lot of bad ones out there.

@Murali Jesudoss we run a property management company. Your PM should always be advising you to keep your tenants in place, with the terms and rates you are talking about. Most rehabs, even light ones, cost more than you anticipate. That said if your PM didn't place them they need to do a complete new screening. Not just let them stay because they are good. She needs to apply like a new tenant. Background check, credit check, employment verification, inspection of the property, etc... Your PM team should be doing all of that for you. They aren't placing so this should be a minimum fee charged to you. Good luck.  

@Ramon Vazquez depends on the loan product you pick. For our long term hours they are 20 or 25 year notes. 5 years fixed then become an ARM that locks back in for 5 years. Our flip loans are different. We are currently paying around 4.25% for these longer notes. What is nice is they start as a rehab loan, can be interest only for six months, then rolls automatically into a long term note once the renovation is complete. With one bank my loan org is only $350, appraisal is $300 and the interest rate is 4.25%. We have done business with that bank for a long time and hold a large sum with them, so you aren't going to get that off the bat, but these types of loans are available.

@Shabyna Stillman I can't really give you one, we run our own PM company. But I can tell you some things to ask for and look for. During the last 16 months we had no evictions, no late payments, and no trashed properties on move outs. Make sure you ask your PM: what is their screening process, what is their minimum criteria, how do they handle evictions, who get late fees, who gets the deposit to hold/security deposit if they back out prior to move in, how many evictions have they handled, how percentage of properties pay late each month, etc... Hope this stuff helps. The wrong PM will lose you tons of money and make this process a nightmare. Please feel free to reach out if you have any questions.