All Forum Posts by: Glenn Espinosa

You can negotiate for either method. Until you have a track record with a lender, I doubt they will allow the single balloon payment, however.

Bill,

You've hit the nail on the head for me. Dirt development is where I'm stuck right now and it's preventing me from being able to analyze potential deals.

Time do do some more research!

Rich,

I definitely agree with you and my hope is to break into new development later this year if not next year.

The learning curve that I need to get a firmer grasp on is the demo, and lot preparation. I'll probably shadow a builder to understand that portion of new construction.

In my area there has been a migration into new development and a lot of the former big flippers have adjusted strategies and are now doing tear downs and rebuilds as well as huge additions, I'm talking about 90% new construction when they're done.

The ARV on these new homes are around the 220k-240k range whereas a rehab of the existing home would net only 150-170k.

There's still opportunity in my area for rehabbing since you attract a different buyer pool when you stay under 170k, imo. With the influx of people moving into new construction there is some opportunity to capitalize on these lower priced rehabs.

Thoughts?

If you plan to take out your money and reinvest, then equity becomes more important.

Otherwise if you're a casual investor and a deal cash flows well with little equity then you can argue equity is less important..

But why settle for one when you can have some of both - equity and cash flow.

Second Scott's comment.

Nothing wrong with that house in my opinion. Aesthetically and if everything else was equal, I'd lean towards a rental but if the numbers work it could be a flip. A wise old Realtor told me once - anything will sell, for the right price.

Otherwise there wouldn't be people living by the highway, next to railroads, in a cemetery, etc.

Missed out on this but i hope its not too late.

Woke up at 7:30 and went out for breakfast with my business partner. We made it a point to only talk business for a few minutes but were still able to layout a plan for the upcoming week.

Checked out BP and a few other websites until about 11. Answered a few e-mails and made 1 call to a potential investor.

Slept for 2.5 hours then went to the gym. Went grocery shopping after the gym and then ate a quick snack. Made a quick call to my realtor to check on the status of a few offers we had in.

Met up with my other biz partner around 4:30 and we walked through our latest deal that we just got under contract. Biz partner left to go start making some calls to contractors about putting in bids.

Went to the shooting range at 5:30 and relieved some stress while looking for a new handgun. Made a call to an agent I've been meaning to network with - setup a tentative lunch date for early March.

Went home and read a little bit of Steve Job's biography as well as Maverick Real Estate Investing by Steve Bergsman (love reading about Trump and the other big guys).

BP the rest of the night as well as email exchanging with a few potential investors.

Late, late night documentary watching on Netflix. For tonight I watched Steve Jobs: The Lost Interview. VERY interesting and inspiring documentary.

Definitely more real estate than I wanted to do on a Sunday but I have to make the most of my off time as I too still have a JOB. And, I have to catch up the last 9 months that a deployment stole from me, haha!

Awesome posts everyone and especially Aaron McGinnis.

I'll be honest that in the beginning I used the very same tactics you described above when doing my first flip - I didn't know any better!

Nowadays I estimate myself and only bring in guys after I place a house under contract. I've found that guys are much more willing to work with me as I now have skin in the game and am not just another tire kicker.

Any other tips? How else do you contractors screen investors and decide on who to work with?

Not my style of house but Im sure someone else will love it. I really like what you did with the master bath!

Best of luck on the sale.

From my experience living in a predominately military area, military people often buy and rent too much home for what they really need.

A lot of guys see a BAH amount and automatically think its OK to rent or get a mortgage for that full amount.

Great for us investors but it's been the downfall for a lot of young military people that I've seen.

I know multiple brand new officers who rent $1,300/month one bedroom apts (not including utilities) with additional $150/month garage fees. BAH for new officers in my area = $1,400 +/-

I know because I was that very same officer just a few years ago. Thank goodness I wised up quickly!

I understand Jon's post and I've had problems with financed offers using hard money in the past.

Nowadays I make cash offers (personal bank statements) and remove financing contingencies BUT put in an addendum that reserves my right to use financing if I prefer to do so. This allows me to use hard money or private lenders if necessary but ties me to the property in the case that I do not have anyone lined up.