All Forum Posts by: Holly Scott

Well, this is where I'm not sure. I talked to a federal credit union today and they told me they only do 15 year, 75% LTV. We expect our ARV to be about 285K. And what we are trying to buy the house at is around 185K. Our rehab costs and financing etc will bring our total to around 250K. But my understanding then is that we would only be able to refinance at 70% of the ARV, correct? So this would not be enough to cover all our expenses just to buy and rehab the house. Am I missing something? Is there a better way to where we refinance to cover all the costs and can then dip into the equity?

We are interested in doing a BRRRR strategy on a house we are looking at, and we currently are planning to do a hard money loan to secure the house and get the rehab done.

I am shopping for lenders to refinace the loan with who will do a traditional 30 year, no money down and then a HELOC on the equity after the rehab is complete (hopefully not making this a 90 day ordeal, as Security Service takes 45 days on the mortgage and then another 45 days for the HELOC!).

Anyone have experience with a bank that we could do this with, preferrably in Southern Colorado?

Any other creative solutions that allow us to leverage the equity?

Triple R Home Buyers LLC is offering equitable interest in a property currently under contract located in the Westwood Lakes Subdivision of Woodland Park, CO.

Ok, so this one is getting interesting. After having gone through getting a contractor to come in a put together a comprehensive bid of the project he came in 38k over his rough estimate on the high end.!We pared it down by 20k, but that still isn't going to cut it. In addition, we are getting conflicting info on our comps. My realtor and a colleague of hers truly believe it will sell for 400k ARV. But my lender and another investor are thinking more like 370k. There has not yet been an ARV appraisal or BPO.

So we are getting 2 more bids, today and Wednesday. And I am getting a BPO done. At that point I will decide if this is a good one for us, or maybe we can wholesale it to someone. Something I've never done and will need to learn quickly as we need to close by July 5th or I have to extend and pay to extend. It is not an assumable contract. But we know there is interest in the property and they would have paid more as we took advantage of a very narrow of time to bid from HUD and there were numerous investors that weren't paying attention and missed the window to bid and expressed their anger to the listing agent. (HUD was very slow to update their site and let people on to bid, until 8:30PM and leaving only 3 hours to bid. Many had given up for the day thinking it would happen the following day). Getting tricky.... I don't even know where to start to advertise a wholesale should we go that route.

Hi all!! So my husband and I started our LLC in November of last year. We flipped our first house, buying December 29th of last year and officially selling on April 18th of this year. We bought that house in our names, not LLC as the offer and contract were made before we started the LLC.

Now we are under contract for the 2nd house, and this time we are doing everything under the LLC. The title company and the lender want an operating agreement. So my questions are:

1. My husband is listed as the agent, and I have checked that the management is vested in the members and that there is at least one member of the LLC. I am no where on the Articles of Organization or any other business document. When I do the operating agreement, shall I be added as a member? I do all of the management and so it can be beneficial to have signing abilities.

2. Would my husband be listed as a member also, even though he is the agent?

3. Should the agreement be effective as of now, or as of the day the LLC was formed?

4. Not sure what to put for contributions. We used our HELOC to get started.

5. We have a business account, but would I need to set up capital accounts for each of us separately? I'm not even sure how this would work, or if it's necessary.

6. Does this get notarized and filed with the state? Or something we just keep for our files.

Any advice would be greatly appreciated! Maybe I am over complicating things, but I want to make sure I am doing this correctly.

Hi @Erik D.! We are using a hard money lender, same as we did for the last house. While it's expensive (4 points, 15%) they make sure the deal is right, and it's a fairly easy process. After 3 deals wth them they come down on points. Our last house we closed on December 29th, and then closed on the sale on April 18th. So 4 1/2 months. We put it on market on March 16th. Had 3 offers on the first day. Closed in 30 days. We actually had a cash offer to close in 14 days but we decided to go with the other buyer who was also financially solid and could close in 30. I will say, next time we'll go with the cash buyer in less time if that comes along again. It would have been a far easier route. Lessons learned. We had a GC, but did all interior paint and all demo plus a whole lot of other odds and ends. While this was worth while to learn, and that we did!! I won't do that again either. Just not worth the time. It's very hard when working full time and managing a real estate business! This time we are using a GC to do all the work. 

I will definitely post pics as we go and progress Ed!! (Can't get your name to link)! Hopefully this one will also be a success! 

Very excited, we just went into contract on our second flip house this year. The first house was also in Woodland Park. This one is a HUD house, with a smaller margin but not bad for this market. It was built in 1950, 2100sf on 0.86 acres. We're going to need to reconfigure some walls due to the funky 1950 style and bring it into this century. Going to be a fun project! If anyone is interested I'll post pics and progress as we go!

Ok so I can't seem to paste pics from my phone on here. Have to do it when I have time on my pc.

Ok here it is!!! We're done, it went on the market Friday night. Saturday (yesterday) we had 10 showings and 3 offers! The 2 best we're hard to decide between. One is a conventional offering 276,500 (our list price is 269,900) and will beat competition by 1600 up to 280k. Their lender gave them a strong approval and a close in 30 days (April 18th). The other is a full price cash close by march 31st. That one wants it for a rental. We decided to go with the first one and she will bring 5k to the table if it doesn't appraise at least 276,500. The great part is that our cash offer said they want to be a backup so should anything go wrong with number one, number two goes into contract immediately!! We couldn't have asked for too much better. Renovations are going to be about 20k over budget so thank God for the hot market!! Here is the link to the virtual tour and some pics I took after staging (staging wasn't able to be done in time for pics, but it didn't make a difference in interest). Time to find the next flip!!! http://tours.virtuance.com/public/vtour/display/721278

Hi @Travis Sperr! I don't know why the heck I didn't think to call you! HELLO! The contractor is certainly a story. They are getting the work done, and fairly fast considering (as you've seen). And what they're doing has been good for the most part. But I have had to be constantly calling them on their crap (lies), hunting them down to sign things like receipts. I am pretty sure they work at our house Wed-Friday, maybe not even Wednesday. And I constantly get the run around with permits. As we near the end these things make me nervous. There are more shady things we can talk about. We won't be using them on the next house. I will be interviewing contractors, checking references, touring jobs they're on and I will provide a far more detailed scope with materials I chose already priced and on there. As far as the permits, we have a few roofer friends who may be able to pull permit for us. Or I can contact the building department myself. Honestly, I am just trying to get the work completed, and do so without any drama or discrepancies. Then be done with them. Not sure if contacting the building department will cause issues that they may then find a way to not finish our job? Anyway, we are aiming for completion by end of next week. Feeling like we have gotten a bachelors degree with this first house. And I know it could have been so much easier, and more enjoyable with a good, solid contractor who know how to run a business! You can be a good carpenter, but that doesn't mean you are a good business person!

@Wayne Brooks when I told her that they should be displayed in the window she told me the building dept. doesn't require that any longer because everything is online. But yet, I can't seem to find any record online for any permits she pulled. She's very good at giving me some story. And avoids completely answering some of my questions even when I'm very direct with the questions.

@Travis Sperr