All Forum Posts by: Robert Howard

Ok Im trying to embark on my 1st flip. The asking is $56k and the ARV is $110k. I estimated about $30k rehab. I offered $38k because I want to make at least $20k from sale. The bank has called for higest and best. I know I cant go over $41k but it has been my experience in the past when banks call for highest and best that even when I up my bid its rejected and put back on market. For my more experienced flippers what would your top number be or any guidance would be appreciated. The market is middle of the road there are a lot of new construction going up on the other side of the county and I see them going fast but the price point is higher for about the same sq footage.

I guess I was thinking more in the future when I start raising rents that may make my price point to high for the market. But I like the option suggestion,  so instead of making it automatically part of rent. I would just say rent is this much but $100 more dollars you get lawn care. 

I currently have a SFR and my property manager talked me into adding lawn care. They advised it would attract better tenants. So instead of $625 a month, rent is $700. The lawn care is $80 a month for two cuts during the season and $40 for one cut in the off-season. Do you all think that this service should be provided for SFR(s)?

@Robert Gilstrap let me clear somethings up. I understand it's a job finding tenants. Also I know the importance of a PM, but what has me confuse is that some PMs don't ask for 1st months rent and do seem to be doing a good job. But my most pressing question is what service wasn't done for a $500 a month rent property that was done to earn $1000 month rent. If you can do it for $500 why can't it stay at $500 give me something to pay on the mortgage I have acquired. 

@Laticia Braxton ok I understand from how you put it, but let me ask this. If you can do it for a $500 rent, why can't it be set the same for $1000 rent. The same amount of work or maybe less with the more expensive property. I like my PM, but it stings a little not seeing that much money come in. Just trying to understand and I guess when I found out my mentors person doesn't charge 1st month made me start thinking! 

What is a leasing fee? Most PM just place ads on internet; which is free. No newspaper ad. Also the potential tenant pays for all the background checks. Also if you can do it for $500 on a lower end property you should be able to do for $500 and my $1000 a month property. I think that is where so of the frustration is coming from. Nothing change in practice but more money is gone. I'm just making sure I'm not being petty. So I wanted to see what others had in place.

My PM has it that anything under $300 is taking care of without calling me. They charge 10% and I like them but missing that 1st month rent was a stringer. Especially after talking to a friend if mine who has one charging 8% no 1st month rent. I'm just checking. I just brought another property and trying to decide if I should try another PM.

is it customary to give up the first month's rent to a property manager? Can some share what their agreement is with their PM.

Try Regions bank I think they are all over the Southeastern Region. They have a product call a HE LOAN. Only thing is they change there LTV when they want. On my 1st loan the gave me 85% LTV. This time they only want to give me 70%. But it has help me to get to where I am now. The other thing you can to is go and talk to the commercial loan specialist in your local banks in person. Don't just call.

@Jarrett T. my first property I had no money.  I called one of my credit card companies and asked for a zero percent promotion since I hadn't use it in awhile.  I then applied for credit card with a local credit union that does cash advance at the same rate of purchase; which was 8.75%.  I got the DP off of that credit card and also did the rehab then transferred the balance to the 0% at 3% transfer rate and before the 12 months ended refinanced the house and took some equity out and paid credit card with a little left for next purchase.  I don't recommend this for everyone, but I couldn't keep use no money as a means of not trying to become financially free.  I'm glad I did it and now have two homes.  I'm currently placing a bid on another house; which I don't have the DP for but I reached out to a friend, who likes good returns and offered him 6% on his money and paid back in 8 months.  He accepted.  I stop saying I can't and keep saying how can I.  You never know what you can come up with when you start brainstorm.  I also have another option; which I don't care for, but if I have to I will.  My truck is currently paid off.  I was thinking about going to a bank not a title pawn and see if I could use it as collateral for a loan.