All Forum Posts by: Lana Lee

Jennifer A. - the exterior will largely remain the same and the interior will be gutted 100%. The building used to a b single family and there is a large stairwell right in the middle, less than ideal for optimizing floorplan.

Demo is nearly complete (my guys are so fast!) and now that the walls are opened up I am meeting with the engineer on Monday to figure out what we need to do from a structural perspective (i.e. Weight bearing beams and walls) to bring my vision to life.

Will post pictures of the blank canvas shortly.

Any other questions, feel free to post in the thread.

Hello Ethelyn!

Congrats on getting started! Can you put me on your buyer's list?

If you ever need some help feel free to give me a shout.

I have found that negotiated off-market flips with a seller finance approach has worked very well for me as well as for investors who leverage their flips with hard money.

Here is an example:

Say for the area you are in you use the standard MAO = ARV * 70% - repairs. What I have been doing to beat out other investors is asking for 12 month financing from the seller if I put down 10%. To hush their fears I tell them, "I am going to pay interest to a bank, why can you get that interest and make even more money. I will put money down, pay you interest every month, and improve your property. The best case for you is if i actually default because then you get your property back in better condition, keep my down payment and interest, then list the property yourself."

This strategy has worked well for me and allowed me to beat out other competitive offers. For seller finance, since most volume flippers pay 8% - 12% plus a point or two for financing, I changed my formula to the following:

MAO = ARV * 75% - repairs

But I make my offer as such:

Offer 1: Cash

Offer 2: You will receive a total of $$$$$ (MAO + Interest) over 12 months.

Cheers!

Cash. Plain and simple. Someone calls, I pay. 

@Brent Coombs I would have to disagree on one point. Purchase price correlating to rent. Assuming you would get lower rents because you bought at a discount just gdoesn't go together in my opinion. One of the things that has made me successful in this business is to identify and purchase undervalued assets. In other words, if you aren't hunting down and digging up deals, you are walking into the batter's box with a strike on the count before you start. 

My model has been to identify undervalued properties that have value as upside. In conjunction with that, there may be a seller with a need rather than a desire to sell. Case in point: I purchased a 3 unit fire damaged property for $40,000. I put $70,000 into it, and have an appraised value of $225,000. That $40,000 house gets the highest rents on the street at $1000, $950, and $800. Purchase price does not correlate to rents in my experience. 

 Two important situations.... to whom?  The OP right there and then who is analyzing something.  That's it.  Rephrase that to say.... "I had posted two important situations (to me and nobody else) and I get nothing".  There's your answer.    

Not that it matters much, but I don't comment on prospective property analysis because 9 times out of ten the prospective buyer doesn't close on it anyway.  We can waste weeks going through every little thing, then.... nada.   "I've decided to go in different direction.  Now analyze this one with me..."  Take, take, take.  Gee, thanks.    

I'm with you!! I had posted on two important situations 1 about a rehab on a possible large apt complex and the other on CRC and I get nothing