All Forum Posts by: Mateusz Prawdzik

@Chris Irvin Hey Chris, nice to meet you. Connect with me and PM me any questions that you might have. I am mainly a flipper but I can answer any question to the best of my knowledge and hopefully help you out. If not me, then everyone on BP will help you out. There is plenty of information on this website that you can use.

@Kristyn Bradley So Private lenders can either be very expensive or very cheap. Big company private lenders are like hard money in couple of ways but tend to be more expensive because can cover usually a lot more of the cost for you and they are less Draw heavy when it comes to the rehab. I had a private lender with 15% interest and 4% points but there was no fees and all i needed was 5% for the total loan amount. They also are negotiable, where as hard money is not typically. 

Then there are "family/friend/person you know" private lenders. These are usually not willing to fund the whole deal (sometimes they are) and don't charge too much because anything is better than nothing. They don't charge fees at all and sometimes don't even require you to put anything down if they are funding the whole thing because you are doing all the managing (in my case). Lien positions are important to discuss with the person because they want security but most HMLs don't like there to be a 2nd lien On the property (this only pertains to private lenders for gap funding.)

You have to be honest with people and don't fluff numbers. BE direct and let them know that there is risk in this game and that there is no such thing as reward with risk. Lots of people want reward with no risk, but that doesn't exist unfortunately. 

@Chris C. The house does look very plain on the outside, the inside is a standard 200-300k Rehab. Check out.... 26 Independence Drive, Roselle, NJ 07203... that is one that I Just sold. It is basically the same finishes, except look at that pictures that I had my photographer take and look at that he focused on and how the outside looked. I know that CA and NJ are 2 totally different markets, but just take a look and see exactly what needs to emphasized and what kind of finishes you need to focus on. 

This was a standard 250k house, it was a total remodel and we sold it in 5 days. Great house. Had water problems tho when it rained because Roselle is built on clay not dirt. 

Just like you, I originally wanted to put the house on the market for 275k because of the fact that it was bigger WITH a garage and everything was flying for 250k, but then you have to realize this KEY fact... Someone can offer you 500k for the house... IF IT DOESN'T APPRAISE, you will get 250k... Listing the house for more won't necessarily mean that you will get that price, most often than not, 250k price point is FHA and those appraisals are very strict. And @Brian Pulaski said that most of the houses in the area sold for <250k, so even if someone offered 300k for it, chances are, they won't buy it for more than 260k.

Take it off the market, fix the things that you can compare the my house , and then put it back... When people see higher DOM, they think that there is something wrong with the house.

@Tyler Deuel There are a bunch of good ones but Casey Eggers is one the ones that I been using the most. Gets stuff done quick and right. Closed one of my properties in 2 days.

@Mike Adams Everyone is on the right page. If you have a budget that wide and big, I would definitely recommend on buying in areas around you. Right now, off market deals are the best way to go, the cap rates don't make sense IMO, but sometimes you can get something that will make sense. Look for properties all over; Union county, Bergen, Essex... There are always deals out there you just have to go and find them. I wouldn't go to towns where appreciation is the prime focus rather than cash flow, only the big money guys can sit on cash that long in order to do that. 

You can also focusing on flipping or passively investing capital... With housing prices going up, it is better to flip and then wait for a correction when cap rates start to go up and inventory starts to go up and demand goes down... That's when you focus on the rentals IMO. That is exactly what I am doing, All I have ever done was flips and when the next correction happens, the goal is to not hold inventory and just buy up the rentals for a discount when it corrects. 

@Cliff Boan Hey Cliff, if you'd like to help me out as well. Please let me know, I am looking for something to House Hack within the next couple of months. Connect with me, I would love your assistance. Additionally, if you are looking for guidance when it comes to REI, I am your guy, you can PM me any questions that you have, I would love to help you out. I scratch your back, you scratch mine type of thing. I am mainly into flipping though but I can answer questions about Buy and holds as well (not as well though).

@Ricardo Lunk Lots of risk my friend, you are in a great position.

@Ricardo Lunk I didn't even need to read the post, I read the title and if it's true... You're in an awesome spot. TAKES LOTS OF CALCULATED RISK. You are 23 years old @100k/year... You can only go up from there.. that means take so much risk because the reward will be so good that it will be worth your time. And if things do hit the fan, you have SOOOO many years to earn that money back. At 19 years old, I am taking more risk than at first I could stomach, but now I got use to it, which might be a bad thing, but I have so many years ahead of me to make the money back that my Time Horizon:Risk Tolerance is way in favor of taking risk. I suggest you do the same

@Ibrahim Hughes Hey how you been man? Haven't talked to you in a while. Let's connect, catch up alittle bit.

@Vaughn Smith Whether the post is old or not, As soon as you comment on it, it goes back to the top of the list at the discussions. You are on the right path just make sure that you focus on the right sections in Newark. Not all sections are good and some of them might be a headache that you don't want to deal with. If you need help determine ARV, find someone that is good in Newark because it is very very block-to-block over there, so I wouldn't be able to tell you the ARV over there as accurately as some people would. Come down a little more south the Union County and I'll tell you what you can sell a house for the the penny. Connect with me if you have any questions, I will always do my best to help someone out and answer to the fullest of my abilities.

@Michael Hayes It is an APP. Easy and quick to use. Definitely recommend it. Sold lots of things thru Letgo