All Forum Posts by: Lee S.

I'm a licensed Realtor but not against wholesaling if done honestly, unfortunately it probably isn't done honestly by most newbies because they are too afraid to be honest.

Anyways, partner with an agent immediately.  You can make an arrangement that once you have a deal under contract they will do a bpo/cma for you at no charge.  They get all your non wholesale leads and you can also try to hook them up wth your end buyer flippers for the sale.

Also, a way around the legalities of them paying you for leads you can "partner" with them on your marketing.

They can pay you a set percentage of their comission towards future marketing, your marketing not a shared marketing.

@Keith Jourdan  Where is your profit in these deals?  I would be interested in doing some flips with those numbers.

@Larry Fried it makes no sense to say a BRRRR is more risky than buying a straight turn key property. If I buy a 100k turnkey with 25k down plus closings costs, I'm into the house for 25k minimum right? If I buy the same house for 40k, attempt to rehab for 35k and have an ARV of 100k then I can do a BRRRR in 6 mos. How long to get my 25k back on that 200 a month cash flowing turn key? A decade. I can be 25k off on my rehab estimate (70% error) and be no worse off than having bought it as a turn key in the first place. Yes, financing may be a little more expensive to go this way if you don't have the cash, so let's say you have 10k in financing costs (extremely high for this value of property)? I refinance and only have 10k left in the property instead of 25k.

This is exactly why I will only buy under value properties that I have a good chance of refinancing all my cash out of. Anyone would be better off skipping turn keys completely, saving all their money until they can do a deal all cash, then doing a BRRRR. Even if it took you 5 years to save all that money up, you come out way ahead of the guy that bought the turnkey 5 years before you. Once you have that money saved up, you can then repeat the process every 6 months moving forward as long as you can find the next property. Compare the two strategies by the numbers, one guy ends up significantly more wealthy in 10+ years than the other.

@Account Closed I'm sure an HML will only take a bid from a licensed contractor. Just be honest with seller, state that you have guesstimated rehab costs but will be bringing in a professional contractor once a sales price is agreed upon in writing and if there are major differences you will bring it to their attention. I've done a couple rehabs now so I'm pretty confident walking through and having a rough estimate. I wasn't able to get really close the firs round couple time since using a list of average prices per job for rehabs.

do your best guesstimate on repairs and get the house under contract with contengencies.  You can then take bids and use those to negotiate the purchase price down if your original estimate was too low.

I faced this same decision twice in the past 6 months, kept both and did the BRRRR with them. 3 main reasons I did this 1) I want to build cash flow and both were in good locations 2) I don't have a consistent enough deal flow to feel confident I can put the money right back to work 3) I didn't need the money from the sales to fund the next deal.

I regret having sold every piece of real estate I've ever sold (past primary homes).

I didn't keep track of them, I was looking for one on my primary while also noting what was available for NOO. I just finished up a 95% LTV HELOC on my primary. a quick google search found this:

https://www.bankofthewest.com/personal-banking/loa...

https://www.penfed.org/home-equity-line-of-credit/

https://www.golden1.com/Loans/HomeEquity

I can find many more.  Start Dialing!

agree with tax accessor.  One perk of being licensed is having easy access to this information, I have app on my phone that allows me to pull up all information quickly.  Sending out a few letters this morning myself.

I've seen a few credit unions that will do 80% on investor properties.  I do t have the names at hand but an hour on google will get you those answers.  

Interesting how some here think that anyone that got on the train the day after them is some uninformed newbie chasing a dream with no thought.  These threads have been coming up a lot lately.  The truth is nobody knows the future, if you feel better selling and sitting on cash, great.  I'm in the middle, I wouldn't even consider buying at retail but I wouldn't in any market, I'm still looking for below market deals and if I find them I will buy.  We are years away from having enough homes in my area, lines for rentals are 100 people deep.  As was said above, banks are also not handing out money to anyone with a pulse and 100% stated loans.  Prices are similar but the details are not.  Real Estate is local.  I always look at investments from a worst case scenario regardless.