All Forum Posts by: Ryan Blake

@Chandra Mcculloch I am more than willing to share the list of wholesalers I have accumulated. Because of the nature of the job, it may not be up to date. The disposition agents (sales people) tend to turnover very rapidly. Your best bet is to get on as many lists as possible. Most will NOT be deals as presented. You may need to negotiate some on the price. There should be some wiggle room with every wholesale deal. Don't talk down the price just to talk it down but find the numbers that work for you and stick with them. Too many new investors try to make the wholesaler's numbers work instead of their own.

@Derrick Castile

Welcome to Bigger Pockets. As @Greg Dickerson said, borrowing from a bank/traditional lender will be cheaper. On average, 3 - 4% cheaper when looking at the purchase and rehab costs. They will "normally" require you to make a down payment as well. This can range from 10% to 25% depending on the type of loan and institution you go with. It will be harder as you are starting out because you don't have a proof of concept yet. Once you establish yourself, the lending options will grow.

As @Alora Glaze said, vet your lender well. Not all lenders are created equal. The cheapest option will normally be best but also look at things like turnaround times on draw funds, closing time, ease of use from past reviews, etc. Some lenders may work better for different property types. It will involve doing some leg work but will help you out in the end. Take the time to research. Hard / Private money will be more expensive than traditional lenders (again by 3 - 4%) but will be much lower out of pocket with down payments from 0% to 15%.

Don't wait to take action but do your research first. Start checking with local banks. What do they want to see to lend to an REI company? What are their rates? Do they cover construction funds? Start checking with hard money lenders to see what are their property and investor requirements? What are the rates? What is the down payment required?

Once you get that info, you will have a good starting point.

@Michael Craig

Relatively flat to now. I don't expect the FED to move in either of their next two quarterly meetings.

@Lance Anderson You are probably going to need to seek out a portfolio lender (a bank that will keep the loan in house and not sell on the secondary market). This is because you as a borrower will not easily fall into a safe category of loans. Also expect the interest rate to be higher than a standard conforming loan.

@Laren Eustace I have but not recently. There aren't as many of these as there used to be. From the last time I bought one, you had to wait 30 days before an investor could make an offer. Before that time period is up, it has to be someone buying to owner occupy. Other than that, pretty much a standard transaction. You can have an option period, takes about 4 weeks to close (in Texas), and was a smooth transaction as well. Check to see if there are any time period on flipping. I believe you had to hold the property even as an investor a certain amount of time before you could flip it.

@Andrea Bergin

Most MLS sites have strict rules against this. If you are an agent, look at the agreement you signed when you signed up for the MLS. If you are not an agent, I don't think you are going to find anyone licensed willing to list a property you don't have ownership in. If you are really having trouble finding buyers for your wholesale deals, consider either 1) going to more events to build your buyers list or 2) selling at a discount to one of the larger wholesalers who have a strong network of buyers already built.

@Maurice Whyte

I suggest you cross-post this in one of these two forums:

1) https://www.biggerpockets.com/... (New York City Forum)

2) https://www.biggerpockets.com/... (Long Island Forum)

People that routinely check these forums will have much better and specific answers for you.

@Zoe Lee

Paying more than the appraised value does not necessarily prevent you from lowering the valuation. Don't use the closing docs for your evidence when you contest the value next year. Instead use the automated system to try and lower it or use a comp pull from an agent or anyone with access to local data.

As to the reason for the initial increase, there are caps on how much valuations can increase when you own the home. I do not know the actual cap amounts. However, when the property is transferred to a new owner, there is no cap to my understanding and the taxing authority will take the property all the way up to their perceived valuation.

@Zoe Lee Did you contest the appraised value prior to the cutoff? When purchasing property, you can take the HUD or closing statement to the county office prior to the end of the appeal period and contest the valuation. They will move the value down to what you paid for it. I did that on 3 homes this year and reduced my appraised value by $235k over the three properties. In Tarrant County, you can also do a protest online and get an instant approval. I did that on my personal house and dropped the value by 15% all with the automated system. If you don't contest the property's value, before the appeal cutoff date, there isn't anything you can do for this year. Next year, you can still adjust down to the price paid in 2019. They will look at any closings from the prior year to change the value all the way down to the purchase price.

Because you say you bought it early this year, I think you just missed the cutoff date for the appeal, otherwise it would have been on the other prior owner to file any appeal. All you can do is take it as a lesson learned and make sure you watch out for those letters mailed with the appraised value in March of every year.

@Darius Smith Sr This is why most wholesalers require the purchase to be cash or hard money.