All Forum Posts by: Rob Scarborough

Hi @Rowland Smith,

I appreciate the kind words.  Do you invest in KC?  That is where I do all of my investing.  

Hi @Brian Larson,

I'm not sure if the Mods will allow this or not, but if it gets deleted, PM me.  I use Community America Credit Union.  My wife and I use them for our personal finances (checking, savings, etc.).

@Wayne Mack,

You also might try talking with local/small regional banks.  I found one in my area that will finance 80% of the purchase + 100% of the rehab at around 7% for our first few deals.  As we grow, that rate will drop to less than 6%.  It's a 9 month term, so plenty of time for a typical rehab.

I have also talked to my local credit union.  They require 6 months of seasoning and will do 80% of the appraised value on a 30yr fixed.

I don't know if you have $$$ for a down payment or not, but my purchase/rehab bank wasn't concerned with the size of the deal.  He was ok with a $20k purchase ($4k out of pocket for a down payment) and another $20-30k in rehab. 

Good luck!

@Mindy Jensen, The end buyer and I communicated throughout the process.  He was aware of the situation.  He was comfortable with closing on Monday knowing I couldn't guaranty another person's behavior.  Luckily it worked out.

@Tom Spaeth, I see where you are coming from and there was a part of me that felt the same way.  However, if the seller was telling the truth, and he had been trying to get his son to move out for 7 years, that's a bit more than just "down on your luck" or "going through a tough time.".  Most of us have those seasons in our life.  I don't think they normally last 7 years.  I am glad the $300 was so well received, but I'm not a fan of cutting it that close to the closing.

Hello BP Nation!

I'm a fairly new investor (1 flip sold, 3 completed flips currently on the market, and 2 wholesaled properties - all in 2015).  However, I listen to the BP Podcast every week.  I spend more time than I should, although not as much time as I would like, on the BP website.  I've learned a wealth of info over the past 18 months.

I have received most of my best leads through "driving for dollars."  The house on Colorado was no different.  The homeowner called me August, 2015 from a handwritten yellow letter I mailed him in November, 2014 and a postcard in January 2015.  We discussed his house and set the appointment.  I use a lot of language @Michael Quarles suggests, like "I'm coming to your house tomorrow to find out what I don't know, confirm what I think I know, and to sign a contract to buy your house."  (Sorry Michael, I wasn't able to wholetail this, but was able to monetize the lead in the form of wholesaling it).

Long story short, I put the house under contract for $20k.  At the time of the visit, I could tell something seemed off between the seller (in his 60's) and his adult son.  I even asked him if everything was alright.  He told me he has been trying to get his son, his son's 'old lady' and grandson to move out for 7 years.  "They just won't leave," he said.  I believe selling the house was the only way for him to get his son to leave.

Over the next few weeks, I met with the seller to show other investors the property (I ended up assigning it for $26,500).  It was obvious he was moving out.  However, I noticed nothing from the son's room had moved or been boxed up.  When I asked the seller, he said he didn't know what their plans were and that I should contact them.

Since I didn't want the new owner to walk into an eviction situation, I felt I needed to do what I could to get the squatters out.  I offered $300 cash if they would be out by Saturday, October 3rd because we were closing on Monday, October 5th.  You would have thought I was giving them a brick of gold!  They wouldn't stop thanking me for my kindness.  

I met with them Saturday afternoon as they were closing the moving truck's door.  I handed them $300.  They handed me their keys.  I closed on Monday and earned a nice check for my work.

This is not they way I would prefer to do business.  However, thanks to BP I had the "cash for keys" tool at my disposal and allowed me to close the transaction smoothly.  Thank you BP!!!

Welcome Ruby!  

I love that name...my daughters name is also Ruby :-)  Welcome to BP.  It is a great place to learn and meet like-minded people.  I HIGHLY suggest their podcasts.

Great point @John Mattox! I hadn't thought about the order in which Legends was built. 

Wi that in mind, was there a bump in property values when Legends broke ground, or in the next few years after?

@Mike D'Arrigo,

I've heard several people talk about the "Cerner Effect" in the Bannister area.  I'm curious if there are any stats that reflect the "Cerner Effect" on the Kansas side by the raceway.  I haven't been able to find any evidence of property values spiking (or even increasing at a higher rate) since that Cerner campus was completed.  Is there any reason the Bannister campus would be different than the raceway campus?

@Mitch Stephen - 

That is fantastic!  I'm currently looking at some creative financing solutions and this explained it perfectly. 

Thanks!

If you are using transactional funding (a short term loan), you would bring a certified check to the title company to close on the home. The title company would disperse the funds to the seller. 

Your buyer would bring certified funds to their closing as well. Only this time you would receive the funds from the title company.