All Forum Posts by: Ryan Dossey

@Samuel Kunzman I haven't heard of or seen a loan where the borrower gets to pick the appraisal. That said if you show up, bring comps, scope of work, and strong rationale for the value you're asking for you've got a really good shot. 

I love when we do this and the appraisal "conveniently" comes in at exactly what we "pitched". You can always dispute one with your lender and get a 2nd opinion. 

A quick "Google" shows 3 touched down in KC just back on the 3rd of May. 

https://www.avail.co/education/articles/what-you-might-not-know-about-landlord-insurance

I would also think while exploring these options you want to look into the differences between replacement and cash value policies. The article I linked to touches on them a bit! 

@Josh Loayza If there aren't any direct 6 plex comps you're going to have to value this on an income approach. 

Do you have solid financial info on it? Real or theoretical? 

What's the going Cap Rate for the area? Noi? 

What is the cost of repairs needed currently?

How about F.A.R.E? (Future anticipated repair expenses. These are things that you know are coming up like an occupied unit that will need turned when vacant.) 

Above 4 units it is a different beast. 

You're going to have a bit of a challenge finding a private lender to fund an owner-occupied property. 

This will rule out people like Lima One and most HML. Your best bet would be family.

I'm assuming there's a DTI issue?

@Giovani Mobarak You're going to have a pretty hard time doing a retail flip without any cash. 

Holding Costs. 
Overages. 
Inspection Items. 
Utilities. 
Taxes.
Insruance. 

Even if you got approved with a HML (which would be very hard/ill advised with no track record) the deal could bankrupt you.

My first flip was funded by a private lender and we ran into challenges with it. I was 20 (this was 5 years ago) and we had to bring $7,5000 to closing to make my private lender whole. This doesn't count the holding and misc. costs that we paid. 

You would probably be better of reverse wholesaling. Attend a local reia. Find a buyer/flipper that's looking for a deal and go pound the pavement. Find them a lead, ask what they would pay, try to get it for less, and get paid in the middle. 

I would also advise getting your license at the same time. Being licensed gives you the all powerful MLS and brings accoutability/credibility with it.

You want to be careful that you don't do any "steering". 

I would suggest that you could have your MIL reach out to her circle of friends and see if anyone is looking. That's the safest way to get her a roommate that could also be a peer. 

You're going to go through phases in life where you lose friends, make new ones, and occasionally have very few. This is especially true while you start to rack up successes and wins as well as learn the lessons of some losses. 

My recommendation would be to choose your friends carefully with the caveat of caution. 

The phrase that you are your 5 friends is pushed SO hard on social media right now. 

Make sure that you don't choose friends strictly for what they have, what they can do for you, or if you can learn from them. 

Some of my best friendships have been with people that someone chasing the "top 5" would have "outgrown". 

I choose to look for inspiring, driven, and loyal humans. 

Success is 4 dimensional: Health, Finances, Relationships, and Personal Growth. 

Culture glorifies the healthy and the wealthy. Don't neglect your personal development and relationships chasing the former. 

@Brendan Kortz I commend you for the way you've dealth with the heat your post has generated. There is definitely a right and a wrong way to wholesale. 

You wouldn't learn if you didn't ask. 

Not all of us were told the "correct" way to do this when we started. Myself included. Shoot you can find my original posts on BP regarding very similar questions 5 years ago. 

Ex: I got it under contract now what? 

The cleanest/easiest way to wholesale legally is to buy and resell. There is ZERO gray area or legal issues with as long as you aren't lying to sellers about property values to get good deals. 

The next best option if paying cash or using HM to close isn't an option is going to be reverse wholesaling. This is working with an established investor who can close (or a few of them) and finding deals for them. I did about 50 of these in 2017. I would reach out to my buyers when I had a lead and send them pics and ask what they would pay for it. I would then go to the seller and see if I could get a deal done with margin in it. 

When buying/selling or wholesaling you want to make sure that you use contingencies/contracts ethically. 

The min EMD we do is a grand. We don't do partner approval or any BS like that. We close on deals we go under contract on.

The ONLY time we pull out of a deal is if during our actual inspection we discover real problems that we couldn't see. 

You expressed a ton of humility in handling harsh criticism from strangers you were vulnerable in asking to help when you knew you messed up. For that I commend you. 

Didn't read all 3 pages but it sounds like your agent has only tried listing the house on CL and the MLS? Is that correct?

Put it on Rentlinx. That will get it syndicated pretty much everywhere. 

Pet deposit of $200 + $25 a month in rent increase. I would simply explain that your property is priced competitively and you won't be reducing rent.