All Forum Posts by: Kyle Simmons

After reading, and doing some research I came up with what I call the "3-P's" of Choosing a Farm Area to do flips.

Proximity

• “Neighborhood news” is not even a yard away! It will be easier for you to stay-up-to date on the “happenings” in the community.
• Shorter commute.
• Create conversations with neighbors, who can possibly pass along a potential buyer.
• You get a better “feel” of “who” your target buyer may be.

Price 

• Account for cash flow needed for monthly expenses.
• Select a farm area where you will stay below budget, just in case of surprises that may arise.
• Consider a farm area in which the purchase price plus expenses will give you a comfortable margin of profit.

Performance 

• City improvements are good indicators that people are moving into the area, or are staying.
• Renovating a home in a more desirable school district is more appealing than homes that are not.
• Get a feel of what type of homes in the area of a particular style are selling.

I would really love input and feedback of this post.

Thanks for all the replies! It really helps.

Thanks!

I have a question(s) regarding EMD:

How much should I ask for from a potential buyer? (I heard that 1% - 2% of the purchase price is ideal).

Where does the earnest money go, when all is said and done?

I have went to a couple of seminars in my area, and spoke to a couple of different real estate investors that have their own companies, also I am attending a REI Meeting coming up this month. Most of these people are rehabbers, they aren't really HMLs.

Hello,

I am new to the real estate world, and want to learn more about becoming a hard money lender. I am pretty sure that I want to take this route other than the other areas of real estate. I am the process of learning the most that I can, and I need a few tips from other HMLs on how I can learn more about the business.