All Forum Posts by: Nicholas L.

@Haven Ousley I actually think this is a really good question. This is relevant not just for flips but also, for example, for the BRRRR method. Everyone loves to omit closing, financing and holding costs that can add up to thousands and thousands of dollars. For example, if your profit on a flip (after all purchase, rehab and closing costs) is $25K, but you have to pay a realtor a $20K commission... your profit is actually $5K. That realtor cost has to be in there.

@David Green in this hot market, can't they just come up with the $8K in cash?  Or can you go to a backup offer?  I agree that you shouldn't have to drop the price... the buyer just needs to figure this out...

@Richard Salazar are you working with an agent?

@Account Closed I think this is an interesting thread and I am following it.  And I agree with some of what you said in your latest post.  But, I really think there are markets / cities / states that Blackrock (and the other institutional investors) are not in, are not interested in, and are never coming to.  If you look at the single family rental market, non-institutional investors still own 95-98% of the inventory (depending on your source.)  Thoughts?

@Noah Joseph Armstrong are you working with a realtor?  How long has this property been on the market?  What do 4 BR / 2 BA properties rent for?  How will you estimate the rehab costs?  Do you have reserves beyond your 13-18k?

@David Banker here's why: a lot of time I see these questions on BP about how to get an SO on board, and it strikes me that it would be easier if the couple is in an overall stronger financial position.  For example - doing a flip using hard money with no savings cushion is way, way, way riskier than, for example, house hacking.  "Convincing" a spouse is very different in those two scenarios.

And to be very clear, I'm not looking for you to post specific amounts of money for all the world to see, just very general information like "I have two mortgages, a car payment, no c/c debt, a decent credit score, and a good savings cushion."  That helps the BP community give you more specific advice.

@Pete Harper OK, disregard the article if you like.  I was pointing out that the distribution of institutional ownership is "lumpy" - i.e., lots of properties in certain areas, and none in others.  From everything I've read across various sources - WSJ, Fortune, Forbes, Atlantic, etc. - that is accurate, and I think it's interesting.  =-)  That's all.

@Matt Perez do you own or rent your primary?  How much cash do you have?  Can you afford a down payment on an expensive rental property?  Can you house hack?

@Jayden Hamilton do you have a W2 job?

@David Banker what's your personal financial situation like - savings, debt, DTI, existing mortgages?