All Forum Posts by: Rob Titus

Rob,

I am just in the Daytona area, so not too far.

Hey Rob - Welcome to BP and the investor space! I am a bit south of you, but if you want to take a "day trip" down and meet up, I would be happy to chat. I am an active agent, but also active flipper, investor, wholesaler, etc., etc. I can walk you through several projects currently in progress at different stages and answer questions, etc. I am happy to have you come and "get your hands dirty", but it may be too much of a drive for frequency and you can likely find someone closer to you. I am the VP of the largest non-profit REIA in the USA currently. I can likely help you in one way or another. Feel free to reach out.

Rob,

You have been given solid advice. I would definitely take up Chad on his offer and go visit him and his projects. I would also highly encourage you to become active in your local real estate clubs if you are not already. It is a great place to connect with other investors. Just make sure you are talking with an actual investor when you take advice not someone that is "planning on" investing. 

Read as much as you can about real estate investing to improve your knowledge. Keep an eye on what is for sale in your market, what is selling, and for how much. Also track rental demand and cost. 

On a side note what branch did you serve in? 

@Rob Titus

Let’s take a step aback even further

1. Where are you going to find a property to flip?

2. Do you have experience to properly budget the time and expenses that come along with a rehab

3. What if it costs $25k more, do you have those funds?

Last week I received $250M in defaulted doc and flip loans (we buy notes), so contrary to what people say here on BP where it’s all rainbows and unicorns - that is farthest from the truth

Now I am not saying don’t flip a property, but also don’t feel forced like you have to.

I would only take from a heloc if you had the money to cover that HELOC Payment if you were to lose money on the deal.

There is no need to take unusual risks with your permanent residence or get involved with harebrained low-dollar lending schemes to make money, @Rob Titus.  While HELOCs always seem appealing, since you feel the untapped money is burning a hole in your pocket, consider the risks.

You’ve never flipped a property Rob, and not all flips are successful. The risk of losing the flip and your family’s permanent residence is real. Deferring some of this risk to a hard money lender makes more sense.

Many HMLs offer loans covering 90% of the purchase price with 100% of the rehab costs. These loans almost always require a personal guarantee. However, even with a judgment, your personal residence will typically remain safe. While many HMLs will not lend to a newbie, the industry is becoming increasingly competitive, so a growing number will. 10% down should not be a lot to ask.

As hard money will cost more than your HELOC, you'll need to find a better deal. Welcome to the club. But this is safer than putting your family's personal residence at risk.

Hi Rob,

If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. A hard/private money will allow you to fund both the purchase and the rehab, so if the HELOC is not sufficient it would make sense to use this. And yes, you should be able to use the HELOC for the renovation.