All Forum Posts by: Jay Dewberry

This is a common question and as you'll see in the search platform, there are many selections. Perhaps try this blog search. I think you'll find some great choices.

Hi Mateus. Try the BP Marketplace for Hard Money lenders. Also perform a search for your area as there may be some past forums that contain recommendations.

I would have to agree with @Mike Donnenwerth. If it were me, I would definitely increase my estimates for Vacancy, CapEx, and Repairs. Since you're using Hard Money, are you expecting to fix/flip or convert to Buy/Hold. Perhaps after a year or two of holding for rental income, you could cash out refi for a down payment on a second property...if the numbers are level by then. Just thoughts. Good Luck.

Hi Lindsay. From my experience, the numbers are going to vary for each deal analysis. That being said, in general, it seems to me that you are in a good range with you figures. IMO, I usually like to see about a 9-12% range on my CapEx, but it seems to me that you are on the right path. Keep up the analysis. Good Luck.

Have you thought about trying for a 203K rehab loan? You may have to live in one unit for a year, but you'll be able to get the roof (and other major issues) taken care of and only have to come up with around 3.5%. I DO think that @Michaela G. may be right with the water though...but then again it's the greater Atlanta area, so who knows. Otherwise, from the information you've given, it seems as though if you can secure financing...perhaps traditional, that you may have some decent cash flow...approximately $225-$250/door if my calculations are correct. If you were to get a couple of estimates on repairs, you may be able to wholesale if there is enough profit for your end buyer. But IMO, the deal makes or breaks with the amount of repairs needed. Just thoughts...Good Luck.

So are you looking for a fix/flip property? Wholesale? I assume so for a single unit at a $320k price point. My first thought is to make sure to check the sales comps in the area...especially the days on market. I would hate for you to have a nice home that will take you 6 months to move. Also, just strike up a general conversation about your neighbor's home. If the conversation flows well, mention that you were seriously considering getting another home for "family" or something. Casually ask something like..."If I can secure financing in the near future, how much would you be willing to sell to me"...or similar. Just thoughts. Good luck.

Again, the best way (IMO) is to contact several insurance companies to get some quotes. Many places have it to where you can input the basic info online. At least that way, you'll have a solid idea of what they will be willing to insure your structure for. The $75 I referred to is for the entire quad and, of course, it will just depend on area.

From what Ive learned, a seller can have terms or price, but not both. If she wants to adhere to her terms, she has to give on the price and vice versa. As an agent, she may have a good idea on what's needed to pass FHA inspection. But IMO, I would want to subtract the cost(plus labor) of a roof, a/c and pool resurfacing in my final offer to the seller...unless this was already a part of your initial agreement offer. It may not necessarily be a red flag, she may just want to get as much as possible for the home as is. But who knows, perhaps (like you mentioned) FHA inspectors will catch it...especially the a/c and roof.

I need to preface this by saying I am NOT an attorney and this is NOT to be taken as legal advice. I believe that you should at the very least consult an attorney on the issue. That being said, if you have contingencies in your contract for such occurrences as fraud, inspection, non-performance, disclosure, partner approval, ect, then you should be able to get a deposit back. However inspection monies I am unsure of. Was the inspection money for a contractor to check the home out? If so, then probably not. But again, if there was something in the contract, then possibly. Just thoughts.

What kind of rehab work is needed? Did you get a feel of what the owner wants for the property? Sounds like if they are looking to "put this behind them" that they are somewhat motivated and/or tired of the property. I'm wondering why you wouldn't be able to wholesale though. There is a 103K spread between what's owed and ARV. IMO, I would want a couple of professional estimates first. Then you can decide where to go from there. Run some potential figures through the BP Calculator and use the results along with comps to justify any offers. Just thoughts. Good luck.