All Forum Posts by: Paul Bowers

What about doing a hard/private money loan for the purchase price then paying for the rehab with the cash he has available? Once the projects done do a cash out refi to repay the loan and recapture as much of his cash as possible and do it again.

@Ashley Clemens, welcome to BP.  Saratoga is one of my favorite places in the country.  I'll be spending some time up there in August for sure!  One of my real estate goals is to be able to make enough money to be able to take 6 weeks off, rent a house and spend the whole racing season in Saratoga.

@Jose Duque, it's funny, I'm actually on the other side of the spectrum currently.  I'm 52 and have a 20yo daughter who I'm begging to buy the type of place you've found so she can start building true wealth and she doesn't want to "share" a house or live in a fixer upper.  I just bought me first property and I'm hoping over time she sees the benefits we derive from it and starts investing at a much younger age than I did.

I wouldn't pay a realtor and give up a full month of rent.  You could lower the rent by $118 per month and that's the same as giving up the $1,425.

Whats the monthly rent?

Congratulations to the whole BP team. It's a great testament to the amazing environment you have created. Thanks for what you do. Next stop, 1,000,000!!

I would think you have to make sure the numbers work with a full service, full commission agent to pull the trigger.  If you then end up using a discount agent you'll still possibly have to pay a commission to the buyers agent.  Plan for the highest commission but if you get lucky and get it sold fast and for the lower commission it's icing on the cake.  I think it's dangerous to count on it with the thin margin.

It seems overpriced to me.  Even if you can turn this around in 90 days close to close there is only about $50,000 left pretax.  Seems awfully risky for a $700,000 investment.  If it takes a bit longer or you're off on your rehab numbers there's virtually nothing left.

Don't think a hard money lender would help.  First off I don't believe they typically lend to owner occupants.  More importantly, what will be dramatically different with her credit situation 6 months to a year from now when the hard money loan comes due?  Her best bet may be talking to the current owner about them carrying the mortgage or doing a lease option.

@Don Daniels, I would doubt that legally you could ask them to pay early.  If their lease says rent's due the first then it's due the first, not early because it's more convenient for you.