All Forum Posts by: Josh Norell

It's not exactly what you're looking for, but some banks may do a HELOC of 80% in less than 6 months. Then you could refi into a conventional 80% loan after 6 months. I just got an 80% HELOC on an investment property through Vectra.

If cash flow is your goal, the Denver market would not be at the top of my list.

If you're looking for long term growth, then it may be. 

And to illustrate the other extreme, the zestimate for my primary is 145k. It just appraised at 420k. I live in a rural area, with few comps. And zillow's has incorrect data for beds/baths and sq ft.

Interesting. I just purchased a property 2 weeks ago, and added my rehab costs to the settlement statement. The MLS sales price did not include these the rehab costs. Were you able to record the higher amount listed on the MLS because you were the agent for the sale? Or is that standard practice?

The property records for the property I purchased have not been updated yet, so I can't say for certain what that will say.

You don't break out your expenses, but I would be conservative here on an older property. The new roof and electrical is good, but I'd estimate 10-15% in maintenance and capex on an older property of this price point. Though if you're doing your own work, that would help keep that down.

Where do you get 3.8% for  interest rate? I'd be quite surprised if you are able to get that rate with no points on an investment property.

Sounds like the inspection for $400 is money well spent. Inspections are highly recommended for newer investors. Sounds like you would have lost money on this deal had you gone for it.

This situation is common. You really need to be in tune what work needs done on the property, rehab costs, and ARV to make an educated offer.

@Shiloh Lundahl I'm not clear how your appraiser would have "seen" your higher 190k amount, and appraised it as such. Where would they see this number? The purchase price of your property was 155k, and this is the number that would get recorded at the county. I realize you added around 40k to your settlement statement when you purchased, but why/how would the appraiser for your refinance see the settlement statement? Wouldn't they just see the sale price of 155k on the county records?

Thanks for all the replies. It sounds like the moral of the story is to learn your numbers and vet a deals viability yourself, and not to trust a wholesaler, no matter which one. It's easy to get burnt. In dealing with the NWA rep, he made it clear that you must do your inspections prior to going under contract. There is no inspection period. And that you 10k EMD is non-refundable barring any title issues. I guess I thought this arrangement was typical of wholesalers now a days. I agree it's a less than ideal situation for someone inexperienced.

Good info @Tim Emery. I wouldn't have thought there would be significant in comps differences between a 1998 and a 2004 build within the same neighborhood, all other things equal. I get that when looking at comps, you want to find properties as close as possible in every aspect to your subject.

@Travis Sperr you say that if you're seeing the deal in your inbox, then others have already passed on it. Are you saying NWA has something of a preferred buyers list who get first shot? It wouldn't surprise me, but the rep didn't mention anything about that.

@Tim Emery

Has anyone had any experience with the wholesaler New Western Acquisitions in Colorado? I've read the other thread about peoples experience with them in other states, and it seems to be overwhelmingly negative. Over estimating ARV, underestimating rehab, etc. Just wondering if the Denver branch, and their Colorado deals are similar, or if people are seeing good margins on them?

I'm new to flipping/rehabbing, and I'm learning to estimate rehab, ARV, and all the costs that go into doing a flip. I realize you need to do your own due diligence, and not not trust a wholesalers numbers. Some of the deals that they put out seem to have some meat on the bone when I ran my numbers, but I'm speaking from inexperience. Hoping to hear other peoples experiences with NWA.

If you have a property with equity you can access, a HELOC can be a good option for the initial purchase.