All Forum Posts by: Greg H.

The numbers are the numbers and if I can get an offer accepted where the numbers work, I will deal with almost any needed repairs. The only repairs I shy away from are environmental stuff, houses with fire damage and those with any drug residue issues such as a previous meth lab. Those add a level of stress that I don’t need

So if you can buy it at a price that allows a roof, I would proceed. The issue these days is that in many areas prices have stabilized but seller’s expectations off getting top dollar have not

@Jay Hinrichs

Nothing brings out “new” members like a GURU post. Appreciate your efforts to educate as always 

@David Istanich

Anyone doing flips with a $10-20k margin using hard money especially will be caught holding the bag more often than not now that the market has turned. So besides the $15k upfront how much do y’all I mean they charge to manage each deal?

I have encountered this twice in 30+ years. Both were USDA foreclosures in East Texas with the Management Company being a field office in Lake Charles Louisiana. Both properties fell out of escrow several times as conveyance was restricted to quit claim only. I was able to negotiate a huge discount each time as no title company would insure.  I was able to negotiate with a title company who I had a relationship with to insure the title when I sold as they both were flips. So I took title via QC with no title insurance on the purchase.

Quote from @Philip Traynor:

Quit Claim Deeds do not transfer ownership interests in property in Texas.  You need a Special Warranty Deed.  

A Quit Claim does transfer one’s interest in a property. However, most title companies in Texas do not want to insure a property transferred by a QC except if the QC is used for administrative transfer such as a transfer from a divorcing spouse to the other in a divorce and the like

Quote from @Michael Masters:

Quote from @Michael Masters:

Premiums for Florida are currently blowing up.  Companies are being forced to increase deductibles while paying twice last year's premium.  Those who own individual homes may not see the bite as Florida insurance regulators protect them from such increases, but these additional costs will eventually make their way through to those policies as well.

Florida rocked by home insurance crisis: ‘I may have to sell up and move’ (msn.com)

So we own a home on the east coast of Florida so n Jensen Beach and I was able to drop my insurance from $3000 to $1900 this year for a little over $500000 in coverage. Granted I have a new home with impanct windows, doors and the like but all is not lost in Florida 

Quote from @Bob S.:

Quote from @Greg H.:

Quote from @Matt Stewart:

Quote from @Bob S.:

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Quote from @Bob S.:

Quote from @Matt Stewart:

I don't think those exist anymore.  I can only speak to my market, but a distressed property in a B area is $180k+ around here.  And those aren't cosmetic rehabs.  

Maybe in a smaller market you might have some luck.

I can get as many as I want in my market. I just picked up a 4/2 all in 75k, I can sell all day for 115- 120k. End of the week I am closing on another 4/2 all in will be 65k, again can sell all day for 115- 120k,,,Last month a 3/2 all in 65k sold for 105k, could have sold for 115k but they bought 3 others from me sooo, These are all great % returns. , . But nobody is going to give away these deals. I will rent them for 1300ish each for about 15% net caps,.and maybe sell in a year or so.   

All the best 

 Those aren't B neighborhood deals though. 

Well everything in Cleveland starts with a B, can't make money in the A, so this would be a C, MUCH nicer than you think. The one all in 65k, was in Euclid on Priday ave, ( google it you will BE blown away on how nice it is ) , as close to an A as you are going to get Nice area. 

BTW I DO not subscribe to the BS ,, ABCD area so many use, its useless. 

Clearly you don't, but most investors do. A property with an ARV in the low $100k's is not an A/B area. You can't polish a turd and call it a diamond. Even if it gives you a decent return percentage wise.

Surely you are making a specific statement and not a general one that "an ARV in the low 100's is not an A/B area?  If you are you are sorely mistaken as most of my tenants are police, fireman and teachers with a school principal and a mayor as sprinkled in

 As I have posted many times . So many just sit on the internet read books, and think they are actually learning the correct way, clearly not. Its ALL about local knowledge. In my market homes from 100- 150k are in nice areas, Euclid, South Euclid, CH, and other areas MUCH nicer than anyone would expect.  I tell everyone get off the internet its a waste of time, ABCD is 100% BS, meaningless.

All the best 

I agree that most people here have the “if it is not available in my market then it it not available” mindset
I meant to post a while back as I saw you live in Jensen Beach. We bought a house last year in Jensen Beach Country Club. Love it as our plan is to be there Oct-May most years 

Quote from @Matt Stewart:

Quote from @Bob S.:

Quote from @Matt Stewart:

Quote from @Bob S.:

Quote from @Matt Stewart:

I don't think those exist anymore.  I can only speak to my market, but a distressed property in a B area is $180k+ around here.  And those aren't cosmetic rehabs.  

Maybe in a smaller market you might have some luck.

I can get as many as I want in my market. I just picked up a 4/2 all in 75k, I can sell all day for 115- 120k. End of the week I am closing on another 4/2 all in will be 65k, again can sell all day for 115- 120k,,,Last month a 3/2 all in 65k sold for 105k, could have sold for 115k but they bought 3 others from me sooo, These are all great % returns. , . But nobody is going to give away these deals. I will rent them for 1300ish each for about 15% net caps,.and maybe sell in a year or so.   

All the best 

 Those aren't B neighborhood deals though. 

Well everything in Cleveland starts with a B, can't make money in the A, so this would be a C, MUCH nicer than you think. The one all in 65k, was in Euclid on Priday ave, ( google it you will BE blown away on how nice it is ) , as close to an A as you are going to get Nice area. 

BTW I DO not subscribe to the BS ,, ABCD area so many use, its useless. 

Clearly you don't, but most investors do. A property with an ARV in the low $100k's is not an A/B area. You can't polish a turd and call it a diamond. Even if it gives you a decent return percentage wise.

Surely you are making a specific statement and not a general one that "an ARV in the low 100's is not an A/B area?  If you are you are sorely mistaken as most of my tenants are police, fireman and teachers with a school principal and a mayor as sprinkled in

I have literally made a career flipping homes in smaller communities throughout Texas and Louisiana. While it is a bit tougher and the numbers higher each way in today’s market the formula was:

Buy in the $25-30k range

$20-25k in repairs 

Sale price in the $100k range. I do have a couple of built in advantages in the I have my own renovation crew and I am a real estate broker. Additionally, I paid cash so carrying costs were low. I typically keep one of every 5/6 as a rental 

The real risk of closing is for the buyer as they inherit this issue with the city.  I would offer to escrow $Xxx to more than cover the issue. FYI-If the lender finds out they will most likely not fund until the issues are settled 

Would I recommend it? No.  Do I do it ? Yes.  However I have many advantages over most in that I have 30+ years of experience as well as my own crew that will travel anywhere I ask and stay in the property until completed.  I also have construction experience so I can understand what needs to be done as well as a reasonable idea of the cost to do so.  So if you are inclined I would recommend :

-Doing a project or 2 locally if possible to at least have a working knowledge of what takes place

-Absolutely positively going to see the property and having it inspected prior to closing as well as finding a contractor with solid references.  Use an agent with invetor experience

-Follow the project closely.  If your contactor is not tech savvy, hire someone off Facebook for $50 to shoot a video of the project's progress weekly

-KNOW your numbers and make sure your margin is wide!!!