All Forum Posts by: Patrice Penda

Ricardo Cristobal Luckily, the rising rates don’t discriminate. They will affect everyone. We’ll all have to adjust to the new rates. So you can either lower your return expectations or lower your bids when making offers.

If there is a way to do it, educate me... lol

Hey @Ricardo Cristobal

Like you heard, rates are low and chances are high that they will rise in the near future.
Where the rates are at any point in time doesn't matter so long as the numbers make sense in any deal you get into.
Like most buyers, if you purchase residential real estate, you should qualify for long-term fixed rate interest. So for the duration of your loan, you should be able to anticipate your mortgage payments and to make projections in line with our objectives.

The 30% margin is to cover closing costs, profits and unforeseen expenditures.
Which would be about 74.7k for an ARV of 249K. This might be enough for the return you want for your client

A great agent brings me the deals and tells where the value is.

If it is a distressed property, i want to know what could be the suitable improvements for the property. I want him to give me a ballpark idea of what she/he thinks the costs would be as well as the ARV.

Of course, i can do all of that myself. But an agent who brings me that info before i spend hours to trying to figure it out myself is extremely valuable.

I am not surprised. My experience with most wholesalers is that their ARV is usually massively inflated and the repair coats are massively underestimated.

Personally, using the free websites : Zillow, Redfin, Trulia all in combination is enough for me to run my own comps.
It might be different in your state but in NJ, there is really enough sales data point to draw a  hard line.

Hey @Lana Aks

Is there a prepayment penalty that comes with the loan.
if there is, one option would be to factor that in your total acquisition costs and negotiate the price down accordingly

I think the biggest impact and disruption will be for the wholesaling business.
I was already hard for wholesalers to find deals. It is going to be even harder for them with the purchasing and marketing power that Zillow can have.

No, you can still implement the BRRRR strategy even with a property you purchased with the help of a loan.

Some people use cash, other use loans.

You just have to consider the cost of refinancing in your projections.
The rate could be higher. But that is a risk you can mitigate  by being conservative in your refinancing projections and assuming a higher rate.

Try all those different venues.
It takes a lot of patience and several to find good deals.