All Forum Posts by: William Powers

I have seen a lot of investors struggle or go under with that strategy.  Cash flow is great but maintenance costs and turn over killed them.  One company had 500+ units in Illinois and they went under for a number of reasons and one was the reliance on section 8 tenants. Be careful.

No sure how you can do that without a track record.  I am interested in wholesale deals in Sarasota county, so please let me know what you have to offer.

Bill

Lee,

Hard to find $$ without the points.  I have tried and it is only available with friends and family, although you will probably compensate them well anyway for the opportunity to use their money to make the big returns that flips provide.  I do.  

Do some networking with friends and family, and head down that road if you don't want to pay the points.

Bill

Wendell,

Great post.  We love the Rent to Own model….we have done it with over 160 properties in lake county il.  @Jason Hatfield, that is a great strategy. Can't say I have every pulled one of these off, but need to try. The MLS north of Chicago is not presenting many "deals" now, so need to come up with other ways to find them.

The margins are must thinner on flips, which is why RTO is such a great way to go. Please promote your next meeting…would like to attend. And if you are looking to wholesale deals in Waukegan or anywhere in Lake County IL, let me know.

Bill Powers

Hi Andrew,

So did you purchase the duplex?  If so, where is it?

BP

Hey Wendell,

Thanks for sharing. Really good stuff. Our goal was 20 flips and $1MM in profit for 2015 and we are not on track. Looks like we only get 15 done, and we need more that will deliver $90-$100k in profit and fewer at $20-30k to hit our goal. 

I understand the "over budget" on the rehab comment. It is tougher and tougher to hit those targets. I have only been flipping for 18 months, but it really is a good day job. And the rent to own model is a good one for you as well from the sounds of it.  We own and manage 160 units, mostly single family homes, and they are all rent to own, long term contracts which makes the maintenance much easier.

We are up here in lake county il as well as Sarasota, Florida so if you have any wholesale deals, we are interested in taking a look.

All the best,

Bill Powers

Additional funds to finance our flips is definitely the most limiting factor for me....and the cash you need to purchase at the sheriff sale, whether that is in lake county IL or Sarasota Fl. We were targeting 20 flips this year but will end up at 15. We can get the financing once we have the deed...at least 80% of purchase....but cash is king and you need more to do more deals and bigger deals.  I ran into the same problem when I was building a rental portfolio,but you scrap by and get it done one house at a time. 

Welcome. Our company purchases wholesale properties so if you want to contact me for anything in Lake County I would be interested. 

Also I would suggest you find a local REIA to further on eduction

All the best,

Bill Powers

RTO property

I have never used FHA and 203k funds, but I understand the process to be quit lengthy according to other investors. Also FHA is very picky about the property they will let you purchase. Better to pay with cash so you can get in and out quickly.

Myself and my flip partner are offering 10% interest on funds to be used for property acquisition, SFR. LTV under 50%. Typical deal size is $100K to $300K and projects are completed between 4 to 7 months. We have completed 18 projects since January, 2014 mostly self funded. We have also completed 160 rental rehabs in the other part of our business, so we are experienced processing homes to completion. Seeking credit line of $2MM.