All Forum Posts by: Kaynea Bingham

Hi Matthew!

I think this is an awesome thread. I am such a lurker on Bigger Pockets! I love reading the post in the forum and I find the information that people share to be very valuable. Okay, so here are my stats.

I am currently working on my 2nd flip here in Orlando. My first flip was a success and I was so grateful for the research and preparation that I did prior to starting my flipping business. Although, I am a active licensed real estate agent, I have a real passion for flipping. However, I know there is currently a trend towards wholesaling. And, in my humble opinion, I believe wholesaling is a lot more challenging than people are really sharing, and for my own personal choices, flipping feels like the right fit for me.(Everyone has to find their own way).

To finance all of my deals I used Patch of Land and I discovered them here on BiggerPockets. I like that they gave me a chance as a first time flipper and they seemed user friendly. In addition, they funded my deals with patience and walked me through the process as a newbie Investor. Also, each time I close a loan with them, they give me better rates.

Although, I could have flipped in my own name, I like my privacy and like to keep my business separate from my personal life. I did create a LLC and I close my investment properties in the LLC's name. For me it provides enough comfort and space between me and my company. (Plus some hard money lenders require you to have some sort of corporation or LLC in order to fund, but some do not. Be sure to check with your lender). By me closing in the LLC's name, my credit was used as a guarantee on my loans, but they didn't show on my credit report as a open credit line. (Please understand if I had defaulted on the loan, it would have ultimately went on my credit).

Honestly, my biggest challenge is finding qualified, affordable, ethical contractors. I prefer to work with licensed general contractors and people who understand my vision for the flip. Contractors are notorious for not staying on their timelines, and I find it difficult to keep them on my time schedule. Anyone who knows a good contractor, please PM me and share. :)

For 2017, I am looking to find a few buy and hold multiplex’s because I want to continue to grow my portfolio. In addition, I would like to ultimately have enough money to fund ALL of my own deals, even though I know this will take time. I definitely will continue to flip and find great deals.

I think Central Florida is a great community to invest in and we are definitely in an upward transition in many industries in the area. I will continue to stay plugged in to Bigger Pockets and feel free to ask me any questions. ;) I hope that helped!

Thibault,

Welcome to Bigger Pockets!  What you are looking for is very hard to find in Orlando.  Get in contact with @StephenAnderson, he will be able to assist you as a local wholesaler.

Hope that helps.

Kay

Hi Kurush!  

Welcome to BiggerPockets!  Here is some data you should find useful.  These numbers are for Orlando  You can PM if I can be of further assistance.

Hi Ruth:

Welcome to BiggerPockets! We have lots of great resources here on the site and many individuals to network with, feel free to ask any question or look around the site.    

I am originally from New Jersey and noticed that you mentioned that you have rentals in 3 different states.  I am finding it challenging to find great multifamily options here in Orlando.    I am seriously thinking about investing in homes in other states (preferably the Northeast, because I am familiar with the area)  Have you looked into investing in New Jersey?  And what is attracting you to Orlando over Northern/Central Jersey?  Thanks in advance.

Kay

Hey Nyala:

I sent you a reply via email.

K.

Hi Jonathan:

Way to jump in there and try to get that first deal. It really takes a bit of courage to make that first step. Figuring out the ARV can be very tricky. When you get a chance, take a little time to listen to some Podcast on BiggerPockets, they have great information, and can help educate you on the do's and dont's of ARV and flipping.

About your home on Lucile, there are a few tricky things with this property.  

1.  Be careful, there is sort of a bidding war on the property, and you don't need to pay more for it than you can afford. ( If it doesn't make money, it doesn't make sense)

2. The area is sketchy.  It sits outside a great community called MetroWest.  The values in that community are great, but your property sits outside of that community, literally a couple of blocks away.  Although your property and that community share the same zip code, your values are not going to measure up.  Its definitely a case that you have to drive the neighborhood and the streets and see what your getting into.  The people who live in MetroWest are NOT going to live on your street. 

3.  Your values are skewed because 32835 has near million dollar homes, but your home will never get close to that value.

4.  The home has fire damage, evaluating this property will be tricky, as you don't really know how much damage has been done to the property, in addition, the home  was built in 1964.  You need to address the HVAC, the lead based paint, and a list of other older home problems.

5. The other house on the street listed for $175k was sold at the highest part of the market back in 2007 for $185K, the owner will NEVER get $175K as the homes in the area are closer to $80-$100K realistically.  

I know it seems like a great deal, but as you know, you have to evaluate the ARV carefully by comparing apples to apples, and oranges to oranges. One last note, when someone gives you the ARV, be sure to check each comp, look at the sales history on the property, and make sure the comparisons are homes that comparable to what your buying.

I hope that helps.  Feel free to drop me a line if you have any questions.  Also, reach out to John Kent or Stephen Anderson, they have great info and advice on the Orlando market.

Hi @Naomi Berrios,

Welcome to Bigger pockets.  I am constantly on bigger pockets doing research; however, I am a pretty quiet on the post.  I understand your financing dilemma.  I have had great success in the Central Florida area with hard money loans.  It is important to understand that when financing a deal, no matter how you get the deal done, its all about the numbers.  Whatever your strategy, you have to be sure your main goal is being accomplished.  I have used Patch of Land from a recommendation on Bigger Pockets and they worked well for me, but my strategy is flipping and buy and holds would warrant different kinds of financing.  

Ultimately, you must first figure out your strategy and then secure the financing if necessary.  There are other lenders available, PM me and I will give you some additional sources.

I hope that helps,

Kay

@Michael Daniel, I would like to be included in the Orlando, FL market as well.  Thanks for sharing.  ;)

Welcome!

John Hyatt I think your overall idea is a good one. I wouldn't recommend paying your contractors directly with a credit card, unless that's their preferred method of payment. However, I too like to accumulate points on my AMEX card, so I purchase as many materials as I can on my card and I pay it down almost on a bi-weekly basis. This method works for me and gets me points towards simple pleasures in life. 😉. I think your idea works great but shouldn't be your primary source of payment with contractors. But I don't see anything wrong with earning some points to enjoy the perks of life while conducting business.