All Forum Posts by: Nnabuenyi Anigbogu

I agree with that approach. Fortunately (or unfortunately) the HML i used did both. BPO to determine as-is price and appraisal to determine ARV. Unfortunately that dual approach bit me on one of the deals because they got the ARV i wanted but did not get the as-is value i needed. Since they lend based on both values i ended up having to bring more money to closing than i wanted (50k instead of 20K). However it was still worth it. Glad to see that is the approach you are using.

I agree with @Account Closed   $650 for a BPO is crazy. For 2 of the hard money loans that i have closed on i was charged $200 to kick off the process. The $200 included the BPO and other fees associated with closing the loan (credit and background check etc). I closed on both loans but if i hadn't i would have been out only $400 and not $1300+.

I concur with Dev. You can posts deals that you are looking to sell, finance or find partners on in the marketplace. Ensure that you do not post them outside of that area or it will get deleted. You can also posts things you are looking for in that are (deals, partners, Mentors etc)

I looked into using dohardmoney before but their terms and especially the upfront fee i don't think is worth it. There are plenty of other hard money lenders in the area that have better terms even at 100% financing. I have found a couple that do 100% but most do 90% of purchase and 100% of rehab.

I believe what Crystal said was correct. The OP wanted to use hard money to purchase holds and then use the cashflow to flip SFH. That is a bad strategy and it seems like the OP did not understand how Hard Money Works. What you are are referring to, the Hardmoney+refinance route is a different strategy and is not exactly suited for extreme beginners. He can go that route once he learns a bit more.

@VINCE MORRIS

Welcome to BP. There is a vibrant community of investors in Chicago that meet up. You should get out and network with them. Let me know if you want information on any of them.

@Jason Hawk

I have been looking into getting into KC. My brother moved there for work so i would have someone on the ground.  I would love to connect with you and pick your brain on the area. Maybe work together in the future.

From what i can see it looks like a solid deal. I was shocked when i saw your tax numbers and then realized it was in new Jersey. I assume this is a 2 flat so over $120 a unit in cashflow which is not bad depending on the area.

 You would actually have a lot less than 15K profit. Keep in mind when you sell you pay 5-6% in commissions to both the seller and buyers agents. on 110K that is 5500-6600 dollars. So your profit is now down to about 9K. Once you factor in closing costs (title, attorney fees, transfer stamps, etc) you could be down to 5K in profit. That is probably not worth it. Also all this is assuming you have no money costs.

I point this out because a lot of newer investors make this mistake and end up losing money on their first deal.

two top books are books you can buy here.

The book on flipping houses and the book on estimating rehab costs by j Scott.

I believe there is even a sale today on BP.

Hi Tarek,

You have gotten some good advice above. Another thing i would like to add is for you to look into the first time home buyer credits that are offered in your city or state. A lot of times it can allow you to househack for cheap because most or all of your downpayment can be covered.