All Forum Posts by: Matthew Berry

Totally agree with you @Jay Lohn. Paying the points and high interest of hard money is a great way to start if you don't have a lot of cash. 

However, with a hard money lender you really need to find a good deal. You'll want to use 70% of ARV less repairs and holding costs. Many people miss that last piece in the equation.

With a stringent formula like that, you'll probably need to work with a wholesaler in the area. I watch the MLS daily and it's difficult to find deals with enough margin (and I have the money, not using HML).

"The houses being sold to Cerberus are in Indianapolis; St. Louis; Kansas City, Missouri; Chicago; Memphis, Tennessee; and Florida, said the people with knowledge of the matter."

Fortunately, they haven't ventured into the Twin Cities market. I bet that will impact our friends in other markets, though. I know that Florida has been a hot market for a long time. I wonder how that will impact our friends down there.

Thanks for everyone's responses. I've heard the Cat 1,2,3 properties can be a pain, @Mark Totzke. Is the property in Como you're flipping one of those?

Any takers? Anyone in St. Paul or Minneapolis or Minnesota? Any house flippers, remodelers, investors?

Great article, @Ray Mulli

One observation, though, is that REOs are almost always listed and sold through the MLS. What if inventory increases, but it's mainly on the MLS? And what if the MLS is over-saturated with mom/pop investors looking for property the traditional way?

That could explain why inventory is up, but it's difficult for those of us marketing directly to homeowners. There might be an upward trend in listing with an agent vs. selling direct.

Just musing here. Not an expert on trends.

Well said. I see the value in it.

After a highly successful rehab that began back in 2012, I now have $120k worth of profit to invest in my next real estate deal. It's been a great journey, but my wife and I are ready for the next deal.

The only problem?

It feels like a lot of the low-end rehab deals have dried up. I've not given much attention to the MLS because it's feeding frenzy. I've also seen other marketing attempts reduce in overall effectiveness.

At this stage in the game, I'm trying to determine the best strategy going forward. Now that I have something in liquid assets I can avoid the "no money down" creative deals (thank God).

We would like to do another rehab. Ideally, we could purchase and fund the repairs with the $120k, then flip shortly after that for a quick profit...even $10k profit would suffice. Something repeatable and scalable.

Any ideas?

Welcome @Mark Anderson! 

I'm in the same position as you, @David Huynh. I can only handle a few at a time. 

Totally agree with @Steven J. on his insight into the market. The MLS is generally not a good place to look right now. We got a steal of a deal back in 2012, that has already appreciated $100k due to rehab and market. We haven't been able to reproduce that situation yet. Hoping for a change!

You posted this same content 22 days ago. Is there any particular reason why you're doing it again? The redundant content doesn't really help the community.