All Forum Posts by: Kelsey VanSleen

Hey Jeremy, the best strategies for high cash flow will also be riskier. The riskiest strategies that have the highest projected income are flipping and short-term rentals, behind that, BRRRRing, and behind that is turn-key cash flowing long term rentals. Of course, many other strategies exist, but these are the basics. 

As a first-time investor, I HIGHLY suggest going with a turnkey long-term rental, and once you begin to learn how to master that strategy, you can branch out into another. It is best first to master the basics, even if it takes longer to make a significant profit. I have seen too many first-time investors try to gut and rehab a house and find themselves underwater on the deal. 

 Most building departments have website outlining permit requirements, or you could just call them. How were the prints approved without permits? You needed to know this and certainly any GC would know this.

Get permits, talk to your HML and work it out.

@kelsey VanSleen

no there is no need for a GC license if the subs have contractor licenses.  Because they aren't really subs at that point just their own contractor not under another persons license.  Most municipality want the license # listed on the permit application. And inspections may have to be done for each individual contractor since they are responsible for their own work.  But honestly with all the counties and different little cities there are a ton of different ways things are regulated, and sometimes depends on the permit office mood and empathy.  

Depends on how extensive the remodel work is, a cosmetic flip paint, trim, cabinets, vanities don't trigger permits here in WA state.  Then you can have the specialist sub pull permits for their work under their license, plumbing, electrical, roofing, etc.. 

Hello,

I am currently located in the Denver, Colorado area, looking to start doing some fix and flips to generate some extra income and eventually transition to a full time real estate investor. 

One of the biggest limitations I am seeing in the fix and flip market, at least in Colorado, is the requirement of a registered contractor to be on the permit for a rehab project. I have experience in construction and rehab projects so would plan on doing a lot of my own work and subcontracting out the rest to save money vs the alternative of hiring a contractor to do the whole project. 

I'm seeing that a lot of the municipalities will allow homeowners to submit building permits, but will place limitations on residency requirements and property types (i.e., not allowed on townhomes or condos, must be primary residence for 1 year). I am weighing the benefits of trying to get my contractors license as I am experienced in construction, but don't think this would be an easy process and it would be ideally avoided. 

Does anyone have any suggestions for how to get around these restrictions, or know which if any municipalities don't have these kind of restrictions?

Thanks for your help, always looking to make connections, so feel free to reach out to me directly. 

Hey Jacob,

Hiring a real estate attorney can be a smart move, especially for navigating the legal complexities involved in purchasing foreclosed properties. They can help with title searches, ensuring all liens are cleared, and handling any legal issues that may arise during the process. However, it obviously comes with a fee. So consider your expenses! As for foreclosure strategies, thorough research is key. Look for properties with potential for value appreciation, understand local market conditions, and be prepared with financing options. Attending auctions, negotiating directly with banks, and exploring short sales are all viable strategies depending on your investment goals and risk tolerance. Another effective approach can be targeting pre-foreclosure properties where you negotiate directly with distressed homeowners before the property goes to auction. This allows for potentially lower purchase prices and more flexible terms. Hope this helps. Please feel free to reach out if you have any other questions, would like to discuss financing options, or if you need help analyzing some deals!

Hey Jacob,

A good real estate attorney is invaluable if you’re going to take on this venture. There is a lot of useful information and individuals right here from whom you might be able to gather most of what you need. However, a local attorney can provide insights into specific local real estate laws and ordinances. I would recommend contacting your local government and requesting a list of properties with back taxes, then start analyzing the areas where you think you can add value.

Text me, there is a new platform to connect with hard loan lenders that offer very competitive rates!

 Hi Ty, 

Here's what I'd say for advice:

- Understand the loan terms thoroughly. Pay attention to interest rates, fees, loan-to-value ratios, and repayment schedules

- Have a clear exit strategy. Know how you'll repay the loan, whether by selling the property quickly or refinancing with a traditional mortgage.

- Focus on the property's potential value. Hard money lenders are more interested in the after-repair value (ARV) of the property than your personal finances.

- Have some skin in the game. Many hard money lenders require 30-40% of the project costs as a down payment. I only require 10-20%, so let me know if you'd like to also get a quote from me 

- Communicate regularly with your lender. Keep them updated on the project's progress, especially if you encounter any unexpected issues or delays.

- Consider using hard money loans as a bridge to longer-term financing if you're planning to keep the property as a rental. DSCR loans are great for that!

Remember, hard money loans are typically short-term (3-18 months), so make sure your flip timeline aligns with the loan terms. Lastly, always have a backup plan in case the project doesn't go as expected.