All Forum Posts by: Dawn Simpson

Thanks @Jaron Walling. I try not to but it’s hard!

Thank you everyone who replied. I apologize for not responding for so long. I closed on the property for under $40,000 which was my price point. The ARV is at least $100,000. This is a conservative number. There is a lot of work to be done but since I will be doing almost all of the work myself it's a good deal. I'm busy getting my house ready to put on the market in May or June. One of the reasons it took so long for me to reply is I've been replacing all of my windows. With the sale of my house I will begin to get rental properties and start building passive income. I'm really excited about going forward!

@John Teachout There is a lot of flipping going on out my way in Gwinnett County. Many are sold and 32 days later back on the market for double the price. Some were only painted and do not have any kitchen cabinets... I saw quickly that getting into real estate around here was going to be beyond tough so I’m moving to the Midwest. Just bought my first property to live in renovate.

This is exactly what I have just done. I took out a HELOC on my home which was paid off so I could get started in real estate investing. I had no closing cost at all so it did not cost me a penny. I did not take 80% or 90% however... I only took what was needed to get started. I paid off some debt with a small amount of it which monthly I was paying more than my new loan payment is. Risky? Yes.

I am minimizing my risk by purchasing a property I will be living in to renovate. I plan on selling my home anyway so I essentially just took out some of my profit from the sell early. With the remaining proceeds i will buy a property to BRRRR then build from that.

There are still risks but I believe I’ve taken a safe approach to limit my risks as much as I could.

Look at all of your numbers. Are you making a large payment on something monthly? If you used part of the HELOC to pay it off would the HELOC payment be less or about the same? I don't know if this will work for you but I thought I would throw the idea out there.

@Jaron Walling Nothing yet. I was asked for another POF today.

@Jonathan Greene I have double checked the ARV and comps of the area to be on the safe side. Yes, there will be an amount of risk but I think all new ventures have risk involved. I plan to live in this house while doing the repairs myself. I am new to investing in real estate but not new to renovations. I have gutted bathrooms to the sub-floors, knocked out walls, installed wood flooring and tile, plumbing, and electrical. This past summer I replaced rotted siding, soffits, repaired roof leaks, and repainted my whole house. I was house hacking before I even knew it was a thing lol.

I’ve put in an offer and now am playing the waiting game. I offered less than my price point just to be on the safe side. If it is meant to be it will happen. I am still scouting for other possibilities in case this one doesn’t work out.

I really appreciate everyone’s response and will definitely let you guys know how this turns out.

@Ron S. Yes, I am sure your right in that they know the scope of repairs etc.

I apologize for my delayed reply and appreciate everyone’s response.

@Vyomesh Desai Thank you for the reply. I plan to have a full inspection of the house during the 10 day period so if there are any major issues uncovered that I am either unwilling to take on or they refuse to renegotiate, I can walk away. Yes, I really want this house but not to the point that I’ll do or pay anything to get it. I already have my eye on several other properties that need less work but of course cost more.

My hope is that someone here will offer advise on how much is a reasonable first offer and how much $ I should show for POF. I really would appreciate some advise in this area. Thanks!

Obviously formatting is not my strong position point. I apologize 😔

Hi, I am newbie and am about to make an offer on a REO property. I plan to renovate while living in the house then either making it a rental or selling after a couple of years. The area is where I plan to buy and rent to build passive income.

I have inspected the property throughly twice. I saw foundation issues and have a bid for repair. Both bathrooms were flooded and will be a total gut. There is visible black mold in one bath.

On to my questions:

I will be making a cash offer. The listing price is $44,900. I am trying to decide what to offer given the foundation repair and black mold problem. Would an offer of $25,000 be too low? I had thought about offering $30,000 but my agent suggested $25,000 for wiggle room. I don’t want to lose out on this property due to too low of an offer.

This was my thought - offer $30,000 cash with POF, 10% EM, 10 day closing, with inspection contingency, include estimate for foundational work, and notation concerning black mold.

My other question is how much $ should my POF show? Should I have $30,000 the amount of my offer or more?

What do you seasoned investors think? Any suggestions or pearls of wisdom? Thank you in advance!