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All Forum Posts by: Rob Beeman

Rob Beeman has started 57 posts and replied 262 times.

Post: looking to grow my knowledge / experience

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@Tim Craycraft  Tim, although I am no longer an active flipper, I flipped in multi-states for a decade or more, and am always happy to offer my opinions. Additionally, I migrated from flipping to lending so since I have been on 3 sides of the table (buyer, seller, lender), I might be able to help you see projects from the lender's eyes also. Good luck, Rob.

Post: Giving equity to contractors

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@David Miller  Along with the other responses - NO!!!

If a contractor wants to be a flipper, you are better off introducing them to a rehab lender and let them handle their own project(s). Besides all of the items already mentioned about why its a bad idea, another is that at this point, it is likely that the contractor that I assume you are using on flips doesn't know the income earned on each project (they only know what their fee is). Once they discover that profit figure you run the risk of price increases from the contractor. Best not to muddy the waters, and maintain the contractor for their services only (not as a partner).

If the thought of taking on the contractor as a partner was because of making it easier to have the total funds needed for a flip, perhaps consider one of 2 other options:

1.) Take on silent partners (low amounts of membership)

2.) Search out a rehab lender that lends close to, if not 100% of the purchase & rehab amounts (can suggest one).  Or a combination of both options.

Post: Multifamily BRRRR Project

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@Lamont Marable  Just sent you a private message with a contact. Rob

Post: wanted renovation team to in Cleveland Ohio area for Fix n Flip

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

Post: dose the 70 percent role still exists ?

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@Abraham Lowy Few items:

1. Always insure your assets! No one can predict the future and replacement cost from being uninsured has the potential to destroy your business.

2. The most important figure in any purchase & rehab formula is the PURCHASE PRICE. 

3. The required element in order to gain the property at the proper purchase price in your formula is a MOTIVATED seller. This is best found when NOT buying where everyone else does (MLS, auctions, REO's,etc.) and dealing directly with the motivated source.

4. When you plug in your PROFIT as a COST in your formula, you stand a better chance of accomplishing the profit figure. Treat it as a cost, no different than the contractor fees, utility fees or others tied to the project. The only difference is that you are paying that cost to YOU, and work the calculations backwards, beginning with the ARV and subtracting all fees/costs to get to the maximum purchase price that will make sense. Overpaying on the purchase price will lower the profit figure (as the other figures in the calculations are less able to be adjusted).

5. As a rehab lender, we have borrowers gaining properties under the 70% rule, however they are buying OFF MARKET, often NON-Advertised properties. In some cases they might by from a wholesaler vs sourcing the asset themselves, but almost NEVER buy off the MLS. So, yea, they are earning a better profit, but they are also working hard to locate those deals.

Post: Debt Service Coverage Ratio Loans

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@Caleb Smith Caleb, as mentioned in other posts here, when the loan is supplied to an entity (LLC), commonly called a DSCR loan, the income underwriting that is used is the lease of the property. The income from the property must cover its bills, PLUS earn positive cash flow.

As for LTV, typically the LTV is driven by the additional guarantor's (you) FICO scoring. The rate is typically driven by the LTV. The better the FICO, the higher the LTV options. The higher the LTV chosen, the higher the rate. Hope that helps, Rob.

Post: A BIG Thanks for a great 2022!

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

2023 May provide awesome opportunities!

We want to say thanks for a great 2022 year to our: Readers, Followers, Attendees, Contributors & Supporters that helped us to continue to grow the REIknowledge.com brand.

Thanks to:

Our Readers that receive our free weekly online newsletters to their email inboxes

Our Followers that benefit from the material at our YouTube Channel, Facebook Page, Special Alerts and Postings

Our Attendees of the free monthly virtual Knowledge & Networking meetings to learn and connect

Our Contributors that volunteer their hands-on experiences of mistakes and successes for the benefit of those who read the posts in the weekly newsletters

Our Supporters that share their products or services with our audience

We hope to continue to supply free access to knowledge, resources, and contacts for real estate investors of every level throughout the upcoming year of 2023 and welcome NEW Readers, Followers and Attendees seeking to benefit from what is offered, with plans for a Facebook Group and Podcast as additions to the REIknowledge.com brand for the new year.

Additionally, we welcome additional contributors that have hands-on experience that can be shared to our Readers, and additional Supporters that have products or services that could benefit real estate investors.

New Readers can subscribe to the free online newsletter and register to attend free monthly virtual events at: www.REIknowledge.com

New Contributors can contact us at [email protected] to discuss what knowledge and experiences can be shared with our Readers

New Supporters can contact us at [email protected] to discuss what product or service can be shared that would benefit our Readers

May each of your completed deals in 2023 be a profitable ones,

The REIknowledge.com Brand Ambassador Team!

Post: Knowledge & Networking "THE CURRENT STATE OF THE MARKET"!

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

WOW! What an awesome time last night at the December 2022 free VIRTAUL Real Estate Investing Knowledge & Networking Event hosted by REIknowledge.com!

A copy of the Knowledge Presentation (What the Heck is DSCR) has been uploaded to the REIknowledge.com YouTube Channel and can be watched here: www.youtube.com/@reiknowledge007

The January 2023 free VIRTUAL Real Estate Investing Knowledge & Networking Event is Tuesday, January 10, 2023 @ 7PM EST. The short Knowledge Presentation will be The Current State of the Market.

Register here please: https://hopin.com/events/knowledge-networking-january-2023

Post: VIRTUAL EVENT CURRENT STATE OF THE MARKET!!!

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

REIknowledge.com presents the Real Estate Investing Knowledge & Networking FREE VIRTUAL Event. The Knowledge portion will cover the CURRENT STATE OF THE MARKET.

Capitalize on the opportunity to gain knowledge and awesome networking in multiple ways at this FREE VIRTUAL Knowledge & Networking Event on Tuesday January 10th at 7PM EST!

The meeting is totally VIRTUAL, so you can attend it from anywhere!

MUST register with this link: https://hopin.com/events/knowledge-networking-january-2023

You won’t want to miss it!

Post: First Dallas Flip! Deal or No Deal?

Rob Beeman
Posted
  • Specialist
  • Philadelphia, PA
  • Posts 293
  • Votes 115

@Nicole Johnson Nicole, in reading the heading of your post, I am not certain if this is your FIRST FLIP ever, or the First Flip in DFW area. If its your first ever, my suggestion is to NOT flip too far from home, and do not do a gut rehab. If however you are a seasoned flipper/rehabber and this is the first in that market, then you may be comfortable with the location/distance from home and the heavy lift on the rehab.

Not certain on DFW rehab pricing, but the Northeast where I am at, a rehab to the studs would be much larger than your budget shared. As for ARV, like others have mentioned, you should allow for reductions. In the Philly market (and other also I am told) I have seen as much as a 25% decline in SFR values in the last 6 months. So investors here are adjusting their anticipated ARV accordingly.

As for the 100% financing, it can be gained depending on the ARV and the borrower's track record over the last 3 years.