All Forum Posts by: Jarred Sleeth

I am saddened to update this with bad news. Upon our contract being submitted, we were told by the lender that since this was a Fannie Mae property, it was required that we list the property for sale for 5 days before they would accept any offers.  With the market being as hot as it is here, this made me pretty nervous.  We listed it for 50k expecting some lowball offers and prepared to take it back off the market after 5 days. The seller was willing to keep my offer if there were some that came in a little higher, but one offer came in 20k dollars higher than mine.  It was an offer from another investor with cash and no inspections. They offered on this house without even seeing it. I'm not sure how they plan to make much money on it, they offered 10k over asking without even seeing it.  I can only assume they have no idea what they are doing.

I am back in the hunt. 

We just got our first potential flip property under contract, an off the market deal that will need to be short saled. Now, I usually do buy and hold but this deal looks to need a bit of work and would be great for a short term capital increase. I figured I would start up a thread to follow the deal, the numbers, and contribute to the forum with education!

Some preliminary details to get your appetite going. 

Purchase: $40k

Estimated Rehab: $45k

ARV: $145k

I will update with pictures soon, and a completed scope of work. 

Jarred

Appraisals are my least favorite part, they always seem to come in low! Congrats on your huge valuation! We have 2 appraisals this month, my fingers are crossed permanently ;)

Congrats! The 1000 dollar lesson is nothing compared to bigger losses incurred from a bad deal. You did great recognizing the risk, evaluating your numbers and finding a better deal! Good luck on the sale!

Looking forward to this meet tonight, the RSVP list was packed with knowledge! 

Thanks again for the invite @Matt Schelberg. 

Committing fraud is certainly no way to run a business, and posting about it on the internet probably isn't smart either. 

What you could do instead, is buy a property with low down payment and occupy it. You could rent out a room, or just live there until your contract is satisfied (typically 1-2 years) and then rent it and find another property and do the same. Bonus points if you can add value while living there. I will say though, the banks are not stupid and they do not like to loan to investors using this strategy of buying conventional with low down and a non-investor rate. They will catch on and you'll be lucky if you can do it more than once. 

Good luck

@Dennis Dailey

Like anywhere, there are good parts and bad parts. Baltimore has a lot of opportunity, if you ever have questions feel free to reach out. There are also many other knowledgeable investors from the area active on BP.

Good luck!

Hello from Baltimore! Welcome to BP.

@Kyle J., if he purchases for 50k with 20% down, he will be able to pull his 10k investment back out at a 75% LTV.

Well, it appears for an increase of 11 dollars per month, you can redeploy 20 thousand of capital for new deals. It sounds like a good deal to me.