All Forum Posts by: Ryan D.

Hey Chad,  Welcome to the area, my business partner and I have flipped a few houses in the area and we're always looking for ways to help.  Reach out if you need any recomendations or help along the way!! There are a few meet up groups around the area, look forward to meeting you in person if you want to attend!  

Best of luck!

Ryan

Hey Justin,  DM me if you're still in search of a drywaller in Spokane.

Hey Troy,  It sounds like the house over in Spokane is your investment property and the house in Seattle will become your primary residence?  Assuming the house in Spokane will be ready to rent by the end of the month or early January I would keep moving forward with the Short Sale purchase because it sounds like a great deal. Short sales are heavily dependent on the bank approving the sale and it may take a bit longer than the end of the year. That may give you the extra time needed to finish the house in Spokane.  

After you close on the Seattle house I would then focus on getting it ready to rent out and put in just the bear minimum needed for the ADU so you can live in it and fix it up over time once the cash is built back up and both houses are rented out. If you do find that you need cash sooner rather than later you could just list either house on the MLS with a realtor or find cash buyers.

But first I would start with your 5 year goals in mind then try to make the decision with those goals in mind. Personally I would power through and be a little uncomfortable to have two rentals and stockpiling cash looking for my 3rd.  

Best of luck and report back what you decided, I'm excited for your new journey!

Investment Info:

Single-family residence fix & flip investment in Veradale.

Purchase price: $123,500
Cash invested: $78,000
Sale price: $263,500

We ended up having to jack the house off the foundation to fix the 'repairs' done by a previous owner. Including all new master beams and subfloor. It took us longer than expected due to the basement reframing requirements.

Renovations to the rest of the house included updated kitchen, bath, flooring, paint and some landscaping. We also opened up the garage door to make room for a 2nd car.

What made you interested in investing in this type of deal?

We wanted to try our hand at a really big project and this was a great opportunity to prove to ourselves that we could tackle almost anything!

How did you find this deal and how did you negotiate it?

Local wholesaler brought us the deal. Negotiated with them on the final purchase price based on it's condition.

How did you finance this deal?

Local hard money lender, they were super helpful and walked the property with us to give us their take on how best to rehab it.

How did you add value to the deal?

All new.... almost everything.

What was the outcome?

Sold on the MLS for more than we thought.

Lessons learned? Challenges?

Never buy a house without walking it first, we made an offer then we walked the property and found some serious issues. Thankfully we were able to work with the wholesaler and the homeowner to come to a win-win-win solution for everyone.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

TC Lending in Spokane WA. Great people and super helpful along the way!

Hey Carina, 

Welcome to BP!  Before you and your brothers invest the money do tons of research on where you want to invest and who you want to work with.  I would recommend learning as much as possible about the area that you want to invest in and who  you want to work with ahead of time.  Learn how to analyze deals and regardless of the economy and external factors you'll be able to spot the gems.  Keep on learning!!

Ryan

Usually through the county assessors office, then you may have to do a bit more digging if it's owned by an LLC or some other type of corp. Best of luck!

Hey MJ,

Interesting challenge that you're facing. So if you pulled a HELOC/refinancing out on your current home the increase in your total mortgage costs wouldn't be covered by the money generated renting it out? Maybe try to see if you could rent it by the room? Air B&B? If you're able to increase the monthly to cover the cost of the mortgage than you'll be golden.

The deal on it's own makes sense, $44k asking + $15k Rehab = $59k total (don't forget to add closing costs, taxes, fees). So let's say worst case you're into it for $65k all said and done, and the ARV is $120k but you have to live in it for a year to meet the requirements.

Think of it from this stand point in a years time you'll have two homes worth combined ($180k + $120k) of $300k for just the cost of the increased mortgage amount of a few hundred dollars a month if you're not able to have the first home paid for by your renters.  If you were even to loose a couple of hundred a month on the first one to have the second home completely free and clear it would still make sense. 

Sounds like a winner to me, maybe I've missed something but I would do it!

Best of luck and reach out to me if you have any more questions, I'd love to help if I can!  Also I would love to hear what you decided!

Hey @Zachary R click,

Welcome to BP!  It sounds like you're looking for a fix and flip or a live-in flip.  Depending on your strategy and the resources you have available (money) you may be limited.  So here is what I would do in your situation.

If you're looking for a live-in flip, find 6 Realtors in your local market (through BP or Realtor.com) Ask them for Mortgage Broker recommendations, not just a loan officer at one single bank.  Brokers will have more contacts at more banks. Interview all of the realtors and the mortgage brokers to find a good fit. Work out the financing side of the equation first then they'll help you find a home that will fit.  When talking to a realtor it helps to have someone with experience in the area for the good old boy off-market deals.  I've had a few leads that came because they knew a guy, who knew a guy... etc...

If you're looking at fix-and-flip because you have the money already then you need to find 'deals' quicker.  Drive around and look for 'Bandit Signs' and call the numbers to be added to their 'buyers list'.  Google 'Sell my house in Wichita Kansas' and contact the first 10+ websites/people that come up to be added to their 'buyers lists'.

If you also need hard money lending, I've found that BP has a great number of Hard Money Lenders that you can find through the 'Network' tab at the top.  Again contact at least 6 of them to start the paperwork/relationship to find out which ones will fit your needs. Ask questions regarding fees/points, time to close, rate reductions based on experience.

If you want to directly market/contact the owners then you could look at websites like:

PropStream.com

REI/kit.com

Auction.com (for buying houses at your local auction, some hard money lenders will actually help you with this)

Forclosure.com

You may still be able to find 'deals' listed on the MLS, my go-to site for research is Realtor.com, so you can filter out 'Pending/Contingent' on the 'listing status' so you don't waste your time on homes that are under contract.

Identify the types of homes (location, price, features/amenities) that you want to target for your fixes and try to get as specific as possible when you talk with the realtors.  They'll help find leads or potentially 'Off Market' deals that they know about.  

Lastly, get out of your comfort zone and find a local Real Estate Investment group in your area, get connected. Tell everyone you meet that you're looking for properties. Check on here for your area for local meet-ups. Check Facebook, check google. If there isn't one then start one on Facebook and invite others to join. Provide Value to others, help them and network, network, network your butt off and you'll get to the point that you have more deals than time/money to deal with.

Best of luck! Feel free to PM me for more questions, I'm always happy to help any way I can!

Sounds like a great plan!  There are a few meet-ups in the local Spokane area that I attend.  I think it would be a great idea to start getting connected with other investors, realtors, wholesalers, and mortgage brokers. The next meetup I have on the calendar is tomorrow (Feb 10th) night. PM me for the details.  We've had some great success with our local meet ups!  Good luck!

@Dylan Cronkhite My main focus is investing, however I became a Realtor to learn more about the process and the industry than anything. It helps to have access to the MLS for comps and research.

What are your long term plans?