All Forum Posts by: Scott Forgue

Hi Sean, ask the homeowner to provide bright pictures or videos of the home which is what we're doing, that should give you a good idea of the work. Depending on your exit strategy and the market area will help determine your repair costs, you will need estimates from a local contractor or handyman to be more accurate. $20/sf seems like a lower market area or minimal work like paint and carpet scenarios, not sure what Aaron is doing or where so don't want to comment on that too much. Knowing the market are is key since you need to know what rents are and values for your exit strategy and to help determine expenses and profit. Find other rei groups in the market area you're looking in and ask for referrals to help. 

Damian, as you indicated there are different methods of investing, do you want to be a passive or active investor. First you need to decide which one because that will determine the funding you need, you don't need to have money to start investing in certain areas. I am not an agent nor know where to get educated in it other than through brokers and other agents, it also depends on what your goal is with being an agent to determine who to work with, EXP Realty is a virtual company with much upside so you may want to start there, I can give you a contact that will help support you tremendously there.  If you want to be successful at anything you need to learn that, own it, and take action towards it. 

There are lenders out there, just need to talk to them about what you're doing. They have tightened up on their requirements and increased costs to borrow. Long term lending for residential is where most of the HM lenders backed out, I have been talking to some that are still doing it because people should still be paying rent but you will need more reserves.

We're becoming more aggressive with the market by generating our own leads to fix and flip. We'll cherry pick what we want and sell the rest off to other investors who can get funding or we'll use another strategy if we can't wholesale them. Knowing values will come down, we're using numbers that are adjusted with the lower market value when calculating deals right now.

Make sure you know the values of your market either way, values will be coming down and make sure you have great credit as scores are going higher for lenders. Turn key always costs more since no work should be needed. Rehab properties need work so are cheaper and require contractors but after done have more value. Then you can buy the in between type which are not full value and need small amount of work using a handyman but don't need major funds to get to full value. Make sure you have good contractors or handyman depending on which way you go.

@Harvey Yergin IV Yes, back to 2010-2012, have to make sure you get deals at better prices.

Buy extremely low, plan on arv being less than what you see, look for max 65% fmv. One hard money lender and title company we know said don't use values previous to March 1 as comps. Syndications are good bet right now to get in on or create like we're doing

50% in, 2 always pay late and we know of only 1 not being able to make rent so not bad at all. Next month will prob be different.

We received rent from 50% of ours so far, some pay late and are working, we only have one tenant that doesn't have the rent due to no work

@Jo-Ann Lapin Where are you lending and what are your terms?