All Forum Posts by: Deurward Clark

So i have never wholesaled a townhouse. I have only done single family houses.

I have a townhouse that I am trying to wholesale for a coworker. The seller owes 143.000 on the townhouse , He wants to walk away with 20,000 in his pocket, I would like a 3,000 assignment fee. The ARV on the townhouse is 195,000 and the townhouse needs very little work. Only paint in 3 of the rooms and some laminate in the living room is needed. About 2,000 in rehab cost. The property is pretty much move in ready. I think this would be a great rental property but cant find any cash buyers. Are my numbers off ? Any advice on how i should proceed. The seller wants to close by the end of November. Thanks

Good day to all, just as a response to the question is DHM a legitimate company. Yes they are a legitimate company, I am in the process of doing a deal now with them and they did fund my deal. Heres the deal from my opinion as i see it. I will list the pros first then the cons second. ( here are the pros. If the deal is good enough they will fund you, most investors they say has to leave 20 to 30 percent down. do hard money is less depending on the deal. The software program they have makes it easy to figure out where u need to be with the funding. It pretty much takes the guess workout of it. The people working for them such as the loan coordinator and the processor are very professional and detailed. The coordinater who really helped furnish my deal Brittany was really a huge help getting me funded, i feel she went over and beyond the call of duty to help me go to settlement. 

Here are the cons as i see it. There needs to be more of a way to communicate via telephone, majority of conversation is via email. sometimes if u need a question answered you have to wait a while to get a answer. We live in a get it now society, thats why fast food chains such as mcdonalds burger king will never go out of business. because people only have to wait a few minutes to get what they need. Also i wish they tell you all the paperwork up front of what is entailed. DHM asks for the info in phases. Also my deal wound up costing me way more up front cost than expected. I had to pay 7, 000 more than i expected. dhm said its to protect me and them from unexpected cost which i totally understand but i felt the repairs would not have come to 7.000 .As i said im still in the rehab phase so i will see if there right or if i am right. They have done hundreds of deals so im sure they have more experience at this than me. Being a first time investor has a lot of twist and turns. I will write another review after the rehab is complete to give a overview of the rehab process with dhm. Then i will give a synopsis of the entire transaction from beginning to end. Hope this helps some one who is considering investing with a hard money lender. Thanx Deurward

Good morning everyone, can anyone recommend a very good and reliable contractor that works in he south jersey area. I am a newbie and I am close to purchasing my first property which will be a flip. So I need a reliable contractor in the area that will do a good job for me. Any recommendations would be great. thanx

thanx Darrell, i never looked at it that way. I appreciate your blunt but honest opinion. I never looked at how am I going to pay the holding cost or if the job cost 5 grand more than what was expected. I will take your advice and try and find a partner. Hopefully someone else does not snatched it up before I find a partner. Thanx again

thank you to the three investor's that gave me feedback to my question. I so much appreciate it. My next question is based upon the response u guys gave me, is it feasible for me to apply for a personal loan to try to come up with some cash since the hard money lender won't finance the whole deal. I am killing myself trying to come up with a way to get the funding to do this deal because it is such a great deal. As I said I have very little cash but my credit is ok. What do u guy's think? Thanx so much. D 

good afternoon investors. I need advice from some sharp minds. Here is my situation.

I recently partnered in with someone where we going to do a flip on a bank owned foreclosure property. We put a bid in at 63,500 and won the bid. The house was listed on the m l s for 70,000. we split the earnest deposit of 1000.00. he paid 500 and I paid 500.

He was going through a private money company for the funding, everything was going smoothly we were set to close in a week. we had a appraisal done on the property and it came back after arv 125,000. and it was listed for 70,000. I had three contractors say they could do the rehab on it for 8500.00 which was great. the house only needed new carpet in the bedrooms and I was going to put laminate down in the living room and dining room. paint the interior of the house, new kitchen window, new vinyl kitchen floor put down, replace 3 4 foot pipes that they stole which was a blessing because they could have taken a lot more but they didn't. also mud spackle and replace the sheet rock in one of the bed rooms. all three contractors said they could do it for he same price and I found a house that didn't need much work. A week before closing I get the email from my partner that was sent to him from the lending company that because the appraisal came back lower than expected, now we have to come to the table with forty five hundred more dollars. where as before they said we only needed 2,000. to close. the realtor showed the comps coming in at 135 to 140.000. so we didn't have the extra cash so we lost our earnest deposit and money wasted on the appraisal. I have no money to waste. My question is will a different lender such as a hard money lender look differently at this as being a good deal and will they finance 100 percent of the deal. I know most hard money guys only do 65 or 70 percent of the arv. As I said I have little money because my job closed down after 20 years of service. Can someone tell me if this is a good deal to flip because I think it is. Sincerely Deurward

And hello to everyone I am new to the real estate investing  circuit, I'm about 9 months in and trying to do my first deal. This is my situation. Me and my partner put a bid in on a reo forclosure property which was a hud house. We won the bid at 63,500 the bank was asking 70,000 for it  I got three different contractors to look at it and they said they could rehab it for eighty five hundred dollars one contractor said 9500.00 . We had a appraiser look at the property and it came back appraised Arv 125.000 but the comps in the area that my realtor gave houses were selling at 135.00 to 140,000. My partner who was doing private money on this deal said that based on this appraisal price that we had to come to closing with 8800.00 when 2 weeks before closing we got a email saying we only needed 2 grand for closing. So neither of us had that kind of cash l. We had the 2 grand but not 8800.00 the lending company said that they were unsure the property only needed 8500.00 rehab but both contractors said it in writing. Now I'm out of my earnest deposit plus the appraisal fee because of this change in closing cost. The house only needs new carpet paint a kitchen window that's where they broke in a only stoke 2 small copper pipes thank god. It needs a new kitchen floor 2 pipes to replace on hit water heater the house was built in 1996. Question is can i do this deal myself through a hard money lender at 100 percent financing I know that's rare or does it not matter how good the deal is they are still only going to do 65 or 70 percent of the arv. I really want to salvage this deal because all the contractors and a personal friend who has looked at this house said it needs mimiul repair work and it's a rancher. 3 beds 2 full bath with finished basement.will a hard money lender fund this deal for me yes or no? As I said I'm new so I don't want to screw this up or get taking to the cleaners thanx everyone. deurward

Can someone please tell me the correct answer to this question. I have a friend that I'm trying to wholesale her house for her. Here's the deal, her mother and brother both are deceased her mother deeded the house to her son in case she died first but he died before her she was 91 yrs old. The house was never transfered over in the daughters name but she has been paying the property taxes on the house for 5 yrs. The house has been vacant for 5 years now because it's a house that the mother used to leave in a long time ago before purchasing another house. Can someone tell me who owns the house? Is it still the deceased brother kids who would be a heir or is it the daughter of the mother since she is next of kin. I can't put the house under contract until she is the owner. But I need to know who the rightful owner is. Please only respond if u know the correct answer because I asked two other people and they gave me different answers. Can someone e please help me. Thanx so much forever grateful

hello everyone, I was talking to my god mother Saturday at my moms birthday party and we started talking about properties. Low and behold she has a property that hasn't been lived in since 2008. she owns the property free and clear. the house was built in 1915. she said she is tired of dealing with the house she doesn't want to deal with it anymore, the house needs a total rehab from top to bottom. She was totally upfront and said the house has foundation issues. it is a row home in philadephia. Here is the kicker, she said if someone gives her 7,000 for it she will take it and run . why only 7,000? because she is tired of dealing with the house and paying taxes on the property. She said if she can recoup the 7,000 that she paid over the last 6 years she would be happy. Sounds like a good deal. Question is can someone please tell me should I get a foundation repair company to come out and look at it first or should I just wholesale it. But just like her I don't want to wholesale a house that has foundation issues. Should I buy it then just rehab it then do a buy and hold or should I flip it? I really don't know what to do with it because im just a year into investing but it really sounds like a good deal. how many houses can you buy for seven thousand dollars. Any and all advice would be appreciated. Thanx so much everyone. D

Thanks for the response chad and jeff but based on you guys answer, I still don't know if

I am bidding against another investor or am I going up against the bank. Again, how do I know?