All Forum Posts by: Chan K.

@Richard Montoya I don't have or use any software tool beside realtor.com. I analyzed the deal on my own using what I know.

I don't recommend using Zillow.com though. Every time someone mentioned about Zillow.com, everybody in my local REI meeting started laughing.

I know there are some tools out there. If you google it, there a few that might come up. The flip side is that which one is good.

Someone from my other post just mentioned "real fast data" database.

@Brian Gibbons

Thank you for the details. This information is going straight to my note.

I attend two local REI meetings. Usually, they bring in speaker on random topic. The network at the REI meeting is good if you are looking for lender, real estate agent, contractor …. etc

You are not going to learn the kind of details and street experience like Brian had provided.

I have questions on some of the concepts you mentioned

sub2, does the seller have to own the home free and clear?

installment sale, does the seller have to own the home free and clear?

lease w option, does the seller have to own the home free and clear?

Wraps-aitds, is this equivalent to a second mortgage (seller is taking second position) given by the seller? If my understanding is not correct, can you give me a bit of example?

private lender financing, someone told me before that this is your family and friend? If it is not, how is it different from hard money lender? The 2-5 years term seems desirable.

jv financing, it is good if you put the deal together since you are using the other guy money and credit. It is pretty much you put the work, he put the money and finance it.

@Brian Gibbons , @Ned Carey and @Michael Moikeha

Do you currently use any software to perform market analysis, get Comp and stat in your area? Would you be able to give me a few references for the software? It sounds like you been in the business for a while.

Does anyone aware of or uses a software (paid or non-paid) that allows you to

1. Perform a market analysis of an area. Pulling out data, look at trend and study the real estate market.
2. Perform a comp of a particular house (I am not talking about you can get your agent license and use the MLS)
3. Quickly pull out average rent in an area
4. Can scout for short sale, REO, foreclosure … etc

@Leon Keeling If you are buying an owner occupy, then you can get in with 5% down or less. If this occupy home needs a rehab, there is also a rehab loan+mortgage option.

If you own a primary single family, but willing to rent out - you can still buy a new owner occupy multifamily with 5% given that you are willing to wait one year.

If you are purely buying non-owner occupy, the requirement is solidly 20-25% as mentioned by @Jimmy S. , unless you can find seller finance.

Vote for me if you like the answer - click vote on the top right side.

Thanks,

-Chan-

@Justin Trudell If you don't mind, can you give me a bit more information as it is also my area of interest in term of buy/rehab/hold or turn key? PM me

1) Were you partnering or looking to partner more in this area for buy/hold?

2) Which zip code is this property locates?

3) Number of bed/bath and PP?

4) How did you find this deal (MLS, wholesaler, marketing, friends/connection ....)

5) Do you conduct the rehab on your own?

6) Is this a 20% and how did you fund it?

Thanks,

Justin

@Jesse Mayo Welcome to BP. I think you will find good cash flow in Worcester, MA. The gross rent multiplier is low, so it is hard to sell in the future. It will be a C area. Slow appreciate and high cash flow (probably be able to get $800-$1000 each floor for 3 bed/1bath) - perfect for buy/hold. You probably will be able to find a decent triplex between $150-$200k. Your tenant quality won't be that great. It is going to be managing tenants. I recommend that you also open up for section 8 tenants. Yes - build in that 10% property management to your equation.

Stay connect with me, because we might be partner in the future. Look for area code: *04, *05 and *10.

Black Diamond meeting is free in Worcester. I will see you there next month. Ann is the co-founder and good source of reference originator. Shaun is the man - ask him any question - he is a living dictionary.

Watch out for gang and drug in Worcester

@Ned Carey Hi Ned, can you point me to a few open source article references or books to get more education on this matter? I kept reading the forum randomly, and feeling like a chopping block phrase. I need a compiling information.

@Ned Carey Is my structure acceptable or additional steps are needed?

@Aly W. Usually I tried to work with them. I tried to convey certain information, so that they can picture themselves in my shoes. Sometime, I met someone who understands.

Hi BP House Flipping Community,

Today I would like to discuss and brainstorm how to structure a single house flipping.

First, I will lay down what I know so far.

Then, I would like to hear other members fail/success's story and other methods they use to structure their flip, while maximize leveraging.

I have been spending a lot of time educating myself in the residential multifamily space, but I lack a single house flipping.

I also understand that getting into REO single family from Homepath is cheaper than multifamily.

REO home for investing only required 10% down payment and 15% down payment with up to $35k renovation money - ping me if you need a reference the lender who gave me this information.

The Structure:

1) Find a single house with a deal (MLS, wholesaler (or agent), marketing ...). This house needs renovation. positive_profit = The 75% ARV is > (purchase price + renovation cost + agent fee + holding cost)

2) Find a contractor to estimate the cost to renovate or you can get down dirty on your own

3) Call up private lender / hard money lend and bank (talk to them ahead of time in case you need to refinance youself out)

4) Write a business plan proposal to private lender

5) Get term and rate from private lender. Maybe, 1 year term @ 11% interest only. Ask them if they allow to refinance for another one year incase the renovation takes longer than 1 year

Question:

- Does private lender required me to put down payment and how much (percentage)?

- Does private lender offers the renovation cost in addition to the purchase price?

6) Start the renovation

7) Line up real estate agent to prepare for the listing

8) Exit strategy. a) Sell the house for profit (positive) or b) hold and rent, then refinance cash out

Question:

Let say the single house is 3 beds / 2 bath @ 1500 sq. Need some work for the heat, plumbing, electric, bath, floor, wall, siding, roof.

Let say the purchase price is $130k

- What would be the average cost ($$$$)?

- What would be the average time it (month)?

Let's hear your failure and success story

Let's hear your other creative idea and finance you have used

Do you flip anything else beside single family??