All Forum Posts by: Kendra Rodwell

@Elizabeth Wilson  @Roland Paicely It is my understanding that the lender will allow me to put a home under contract, and if I decided that I did not want to flip it or could not come up with the downpayment and closing costs, I could wholesale it to them (I think they have contractors/project managers that will complete the flip for them not entirely sure). I would assign the contract over and I would receive a check. 

The property is listed on the MLS and it was not FSBO.

It seems like I would need to read through my contract with my agent to see if assignments are permitted in the contract and see what MD state laws say about these types of contracts (it appears no one from MD commented on this topic yet). 

Thanks for weighing in on this topic. 

My main strategy is to focus on fix-n-flips but I found a great deal on a property that would not be a good flip for a newbie like myself (over $70,000 of renovation cost and some foundation issues). I found the property and had my realtor show me the place. If I have him write up the contract and then I assigned it to another investor, how does the realtor get paid? I would be wholesaling to a lender, not a real estate investor so that may complicate things a bit. 

@James A. Thank you for the words of encouragement! I have built up my contact list of HML so I think I am on track. I found two deals and put in my first offer last week on a bank owned property. If all goes well, I should have that home within 2 weeks. I will be sure to come back and update you all on my first flip.

Thanks for recommending RehabberPro! That group is phenomenal. They provide some great information. 

@Stephanie P. thanks for your comment. I have been doing my research on HML and I know that they are more expensive than a conventional lender but they require less paperwork and move faster, which is important for home flippers.

I do not live in Baltimore so doing a house hack is not feasible for me. I want to fix and flip homes, that's my exit strategy. 

As for Edmonson Village, I was only inquiring about the area because at those prices, I wouldn't need to borrow as much money to get a flip started and I would have some experience before investing $30k-40k. But I have already ruled that area out. 

My hope was to find a lender that didn't require a lot of money upfront and would be willing to get their interest and points at the back end of the deal. 

Point well taken. Thanks for clarifying that for me.

@Tom Gimer

@Tom Gimer excuse my ignorance, but would you mind further explaining what you mean by "factor the cost of an unnecessary mistake into your analysis"?  Do you mean that to foreclose on a property, it will cost the lender an additional $15k-$20k to sell the property? If it a common occurrence, is it safe to assume that all Bank ROIs will have this additional cost tacked on to the purchase price?  And you are right, Maryland is a quasi-judicial foreclosure state because the court still has to ratify the sale. 

@Ozzy Sirimsi you are absolutely right! I have been talking to different investors and even on this thread, there are so many ways to get started. One of the things that I keep hearing is that I must take action. And that is what I am trying to do. 

@Tom Gimer Thanks for the advice. I have had a few REIs contact me so I may pitch the idea to them to see if they are interested in teaming up on my first deal. 

Thanks again!

Thanks, @Jeffrey H.  and @Tom Gimer for your input. I happened to have worked in stadium operations for over 4 years so I have a pretty good handle on estimating cost and material. 

Regarding the loan terms, I am only going by what HMLs are advertising on their websites, after doing the math based on their terms. I do not want to put up that much money up front, hence this post. It appears there are a few HMLs that are willing to lend to newbies like myself. And I can understand them wanting to protect their interest, I would too. So I am willing to pay the price at the beginning of my career to get some experience. 

@Christopher Haynes you are absolutely right. I don't want a property to be sitting for too long. But at the same time, in order to purchase a home in the $90-$100k range with an ARV of $150k-$160k (I think this will be a sweet spot for me), I need at least $20k to get started. That means I probably will be waiting another year to flip my first home and I have put this off long enough. I may have a few private investors to utilize but there are a bunch of obstacles with that route. I am just looking to get started.