All Forum Posts by: Nicholas Smith
Nicholas Smith has started 4 posts and replied 82 times.
Post: Changing my Mindset - Any Advice?

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Hey man, don't beat yourself up about this. At least you are in the game. As a realtor and investor, I hear many people say that they want to buy real estate. But most of them never actually pull the trigger. So you've already accomplished what many people never will. And getting started in real estate investing or anything worthwhile for that matter is never going to be a straight path. But start and continue networking with other professionals, learn how to analyze deals, and keep pushing. You'll eventually get there. I do have one suggestion. Pick one to two areas of real estate investing that fit and interest you and become experts in those areas. The shiny object syndrome is real and deadly! Best wishes to you in your endeavors!!
Post: Fix-n-Flip Gone Wrong

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
My first flip was somewhat similar. I found out on my way into the closing that my hard money lender's appraisal came back low. That was the most nerve wrecking 15 minutes of my life! Numbers were much smaller than yours but the same principle. But I had to get resourceful to purchase and finish the project. I took out some business unsecured credit credit, borrowed against equity in vehicles, took out a personal unsecured loan, etc. Maybe you try to get this thing under contract again and show this to a contractor. You might be able to convince them to get paid at least partially out of escrow? You have to think outside the box sometimes. And btw, when I sold my 1st flip, it appraised substantially higher than the hard money lender's appraisal. Their appraisals are intentionally conservative. Keep that in mind.
Post: Having Trouble getting Started with Rental properties

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
What methods are you using to find your properties? If you're just looking on the MLS, you're primarily going to be seeing properties at retail prices. And nationally, in the single family space which is anything 1 to 4 units, inventory is extremely low. Are you looking at any off market deals?
Post: Compensating your realtor

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Depending on price point, 3% may not be enough to entice a good agent/ broker to work with you consistently. If your working with properties in the $20,000 to $30,000 range, 3% isn't much especially when you consider the typical agent has some type of split with their broker. So I'd work with your broker and establish some type of minimum commission they'd receive. And keep in mind that it's still all about building the relationship. Hope this helps!
Post: New investor from Indiana

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Post: First Fix & Flip - Two Financing Options

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
@Luc Boiron I definitely will.. I'm dealing with contractor dilemnas now.. lol. But I know I'll get through it..
Post: First Fix & Flip - Two Financing Options

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
@Luc Boiron and @Ronan M.
Thank you both for your feedback. I have decided to go through with the hard money lender. Project should be underway in early April. So I'm definitely looking forward to it. Again, thanks for your words of advice!
Post: First Fix & Flip - Two Financing Options

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Thanks for your feedback Luc!!!
Post: First Fix & Flip - Two Financing Options

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Hello BP,
I would appreciate any feedback or suggestions on the following scenario. I'm under contract for my first fix and flip in East Chicago, IN.
Purchase Price: $50,000
Rehab Costs: $30,000
ARV: $115,000
I have two financing options that I'm considering.
Option 1 - Hard Money
APR - 13.5%
Origination Fee - $3,000
Appraisal/ Inspection Fee - $350
Option 2 - Offer from family members (Aunt & Uncle)
Family members bring $40,000 to the table
I bring remaining $40,000 plus holding costs
Split sales proceeds on a 50/50 basis
Other pertinent details: I'm hoping to hold the property no more than 6 months. I am a licensed real estate broker so I'm representing myself in the purchase (estate sale on MLS). I will be listing the property once rehab is complete. And I will have to manage the project because my family member is not in the area.
Which option would you all suggest?? Any input would be greatly appreciated.
Thanks,
Nick
Post: New Member From Northwest Indiana/ Chicagoland

- Real Estate Broker
- Northwest Indiana and Chicago, IL
- Posts 86
- Votes 33
Originally posted by @Scot Howat:
Welcome to BP, network network network!
Thanks for the welcome Scot!!!!