All Forum Posts by: Mark Shaffar
Mark Shaffar has started 27 posts and replied 316 times.
Post: SFH Fix and Flip opportunity in Milwaukee, WI
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Jai Reddy:
Carrying Costs: $2,000
What assumptions are being made as to how soon this property will sell from date of purchase?
We say 6 months to be on the safe side but usually 3-4 months. Thanks for asking.
Post: SFH Fix and Flip opportunity in Milwaukee, WI
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
@ Bob- I agree. We are pretty conservative on our numbers. We prefer to under promise.
Post: SFH Fix and Flip opportunity in Milwaukee, WI
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
This is a fix and flip opportunity for Milwaukee
a 4/2 SFR at 10441 W. VILLA AVE. Milwaukee, WI
Price: $51,500 (initial purchase and our management fee for the project)
Rehab: $42,000
Closing Costs: $2,000
Carrying Costs: $2,000
Total all in for the investor: $96,500
ARV: $118,000
$118,000 Resale Price $11,800 Selling Costs (Realtors/Buyers closing costs $96,500 All In $9,700 Net Profit Projected Close date : 5/8/15
Videos:
Trulia:
http://www.trulia.com/homes/Wisconsin/Milwaukee/sold/649226-10441-W-Villa-Ave-Milwaukee-WI-53224
Zillow:
http://www.zillow.com/homes/10441-w-villa-ave-milwaukee,-wi_rb/
Comps:
Post: Would you take this Deal??
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
I wouldn't sweat the low appraisal unless you're looking to flip soon. All it's doing now is making you lower your risk by borrowing less. If Amy is right then the low appraisals are more or less universal and the next buyer faces the same issue.
Post: Should I finance my current home for investment capital?
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Matt Robinson:
There are a lot of gurus out there that will tell you to leverage your future and sell your kids to get started in real estate investing, but that's incredible unwise. I would NEVER recommend that someone take on NEW debt in order to "get started" in a business they haven't even proven they can do successfully. You could end up NOT being very good at it, and then you just have another $15k in debt and nothing to show for it.
And you don't NEED $15,000 to get started in real estate investing. You need a few dollars to get started with marketing and finding motivated sellers, and then you can wholesale to buyers with cash until you have enough money in your war chest to do deals of your own, and make the bigger paychecks. You should be using your investing to PAY OFF your mortgage, not create more debt.
Plus, when you BORROW money, and it's not your own hard earned dollar...you tend to make less informed decisions. When it's coming out of your wallet from a week's pay, you think harder, do more research, and make sure it's the right marketing strategy before you pull the trigger...which is a good thing.
So, my advice, if you can refinance the principal balance for a lower rate, and that frees up some money in your monthly budget so you can launch a motivated seller marketing campaign...then THAT is the right route.
I second that. The play should be improving your cash flow through a refi not adding more risk
Post: Should I finance my current home for investment capital?
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Matt Robinson:
There are a lot of gurus out there that will tell you to leverage your future and sell your kids to get started in real estate investing, but that's incredible unwise. I would NEVER recommend that someone take on NEW debt in order to "get started" in a business they haven't even proven they can do successfully. You could end up NOT being very good at it, and then you just have another $15k in debt and nothing to show for it.
And you don't NEED $15,000 to get started in real estate investing. You need a few dollars to get started with marketing and finding motivated sellers, and then you can wholesale to buyers with cash until you have enough money in your war chest to do deals of your own, and make the bigger paychecks. You should be using your investing to PAY OFF your mortgage, not create more debt.
Plus, when you BORROW money, and it's not your own hard earned dollar...you tend to make less informed decisions. When it's coming out of your wallet from a week's pay, you think harder, do more research, and make sure it's the right marketing strategy before you pull the trigger...which is a good thing.
So, my advice, if you can refinance the principal balance for a lower rate, and that frees up some money in your monthly budget so you can launch a motivated seller marketing campaign...then THAT is the right route.
I second that. The play should be improving your cash flow through a refi not adding more risk
Post: Investing from Overseas (at least for now)
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Hi Christian,
I bought most of my properties in Minnesota when I was working in China. The key is to find a good company that you can trust to manage it. I'm currently looking at Milwaukee for my next purchase.
As far as other financing options private money is great. I'm guessing you are referring to buy and hold for financing and that's a little tougher. I'm also assuming you've looked at VA loans too. Those are no money down but you do need to owner occupy so you might want to consider house hacking and living in your multifamily financed with a VA loan. That's what I am looking at doing in the next few months.
Post: Newbie, how do I get started
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Hi Damian, Welcome to BP. Best of luck to you!
Post: New Member from Macomb, MI
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Hi Eric, Welcome to BP. I hope you enjoy it as much as I do
Post: Newbie from Worcester, MA
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Hi Camden, welcome to BP. I agree with Paul, BP and your local REIA are great places to learn and meet people