All Forum Posts by: Ron Steckly

Rehabber estimates costs at 50K but is saying 70K in carrying costs.

$166K + $70K=$236K

$282K to $297K comp=46K profit. $46K/2=23K each for two to three month loan.

Hi Will,

I haven't lent in RE before.

It is a first closure, so there is no HML (if that means home mortgage loan?).

Purchase price is $166. Hard money lender is lending funds for purchase price but it hasn't closed because they want proof of funds for repairs, which are estimated to be 70K.

No work has been started.

Ron

Hi John,

First, I don't own these houses..so they aren't 'my crappy' houses. Given that they are already rented to section 8 tenants, my assumption was that if only criminals and deadbeats will rent them, that meant that section 8 tenants are criminals and deadbeats--given that they are already rented.

Sorry I forgot to add that when he sells, I will get 50% of the profit. The hard money lender is just a lien on the title.

Hi,

Flipper wants 70K for rehab and is willing to put me on title of property along with hard money lender and his LLC. Property is selling for $165K but comps but it rehabbed at $282K to $297K.

He has experience flipping but this is the first he has done on his own.

Should I do the deal? He has an LLC, so he could just take the funds and disappear. On the other hand, I will be on the title so I could recoup most of the money.

Anybody know a good real estate attorney in California?

Thanks,

Ron

Hi,

I'm wondering if anyone has experience flipping homes with a local person?

Local person wants to structure it so that I provide cash, he splits profits.

How do you protect yourself in that case? How do I know the person won't misrepresent expenses or just run off with the cash?

Ron

I don't believe people with criminal records are allowed to do section 8. I think there is an article about that somewhere...

Hi All,

Anyone know of good wholesalers in Indianapolis?

Thanks!

Ron

Isn't there downside risk here? I feel like some of those prices might go back down...

Nice! Small world I'm about a mile from there.

They're worth about 25K each now.

Does it make sense to buy "cheap" properties in low crime areas that have really favorable rent to price ratios?

The problem I see is exiting at some point.

Ron