All Forum Posts by: Shawn Clark
Shawn Clark has started 1 posts and replied 183 times.
Post: What’s are the advantages of a 203K FHA?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Post: What’s are the advantages of a 203K FHA?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Post: What’s are the advantages of a 203K FHA?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Post: PROPERTY MANAGEMENT WITHOUT A LICENSE
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Post: Do wholesale deals have to be cash and have no contingencies?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Brian Garrett:
Originally posted by @James Green:
@Brian Garrett traditional financing takes to long for most wholesale deals. The deals go to the buyers on first come first serve. If you sign a contract, then have to wait a month or so, then get denied,...well the wholesaler could of sold the deal to someone else, if it was truly a deal.
The financing aspect also depends on the seller. I have DC developers I work with, to sell their inventory off-market, that will take traditional financing. Motivated sellers are expecting their property to be sold, fairly quickly, and in as-is condition.
Understood thanks for your input James. I'm just trying to find a way to not have my cash locked into the deal because then I have no ability to scale or acquire more properties until I'm able to cash out refinance and recycle my capital.
You either tie up your own cash or the cash of someone else or both. That's HOW you scale. It's a choice. Time or money. You either wait and use your cash, or you pay someone else to lend you cash so you can do more deals.
What you're trying to do is get cheaper money by not using a hard money lender. So go find someone (private lender or friend) that will give you money cheaper. That's your challenge. But you will not be able to pre-finance based on future ARV with a retail lender...which is the impossible task you seem to want to do...UNLESS you go the 203(k) route which is expensive and restrictive unless you already have the perfect GC lined up.
Post: Do wholesale deals have to be cash and have no contingencies?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Brian Garrett:
Originally posted by @John Thedford:
Originally posted by @Brian Garrett:
Originally posted by @Account Closed:
Originally posted by @Brian Garrett:
I've noticed some wholesalers saying deals must be all cash and some even require no contingencies.
Is this standard? You can't buy wholesale deals with financing? You can't have inspections?
In the event that is true then I don't see how it differs from just buying at auction.
but the due diligence period is usually very short they don't want you shopping tier deal around or wholesale a wholesale deal. Proof of funds is needed and many times you will loose your deposit if you can not close
Proof of funds isn't an issue but what if I want to use financing and not pay all cash for the deal?
Are you wanting to buy and hold or act as a broker? If buy and hold, you can always have a financing contingency. If it falls through, you can still close all cash.
I'm looking to BRRRR and keep as a rental or rehab and flip depending on which way the deal makes sense.
You mentioned you want to BRRRR. The first R is for RENOVATE. How are you going to do that with conventional financing? 203(k)? Have you done that before? It's not the cheapest way to go unless you already have a good GC lined up with decent prices. You can't do any of the work yourself.
And unless the property is in solid livable condition you will struggle with conventional financing, not to mention the need to move fast. Wholesalers don't want to wait around for all the retail stuff. It's too uncertain and takes too long.
Post: Do wholesale deals have to be cash and have no contingencies?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Brian Garrett:
I've noticed some wholesalers saying deals must be all cash and some even require no contingencies.
Is this standard? You can't buy wholesale deals with financing? You can't have inspections?
In the event that is true then I don't see how it differs from just buying at auction.
Everything is always negotiable...except when it isn't. (I'm sure that was helpful.)
By the way, hard money = cash. I don't see how you would use conventional financing though.
Post: Lead Propeller Feedback
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Alex Wentland:
We have been with Lead Propeller little under a year and it has been fantastic! We didn't know enough about SEO and didn't have the mass amount of time and effort it takes to rank our website so we decided to use their service, I just based it off of Danny Johnson's website which is the top ranked website in San Antonio so clearly they know what they are doing, they got us on the 1st page of google for several relative keywords in 6 months! Now we are just trying to move up the page to the first spot. The ROI on paying for SEO assuming they actually do a good job which Leadpropeller does, is through the roof! The amount we will pay over a 1 year period we will make on 1 deal, after that our website will be ranked and keep producing leads week after week with a lower cost to keep it ranked #1. Josh who is the guy with Leadpropeller who manages it for us, lets us know exactly what the plan of attack is and updates us every month on progress that was made. If your serious about ranking your website and motivated seller marketing I would recommend giving Leadpropeller a shot for sure, even if it takes them 12 months to rank your website on page 1 because your market is super competitive it's still worth it. It would take us way too much time to do what they have done and as you close more and more deals your time is much more valuable then what you will pay for the service. They really know what they are doing and you can see proof by just looking at Danny's website. Check them out and feel free to reach out to me if you have any questions. Hope that helps!
Hey Alex, I like your site. Did you customize it yourself or pay them to do it for you?
Post: Baltimore City - Water Bill
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Keenan Rusk:
@Shawn Clark thank you for your feedback! I remembered that Baltimore used to bill water quarterly so I used a very conservative number (about $250 per quarter) and assumed responsibility for it, but knowing that billing is now monthly makes it easier to run my numbers with the tenant paying if the amount is much lower.
I like your $250 per quarter number. I've seen $360 before when there was a leaky toilet or they had 8 people in the house. Better to estimate high. Especially if there's two units.
But yeah, they are monthly now.
Post: How many investors from Maryland are on biggerpockets?
- Investor
- Middle River, MD
- Posts 191
- Votes 127
Originally posted by @Ari Bachrach:
Okay, we have people. Who wants to do a meetup? I'm thinking nothing fancy (no prepared talks or anything), just all meet at a local pub or some-such to meet each other and make connections. I'm thinking Columbia, Jessup, or Laurel because it's easy to get to from both Baltimore and DC.
Well, I tried to post a meetup that's already scheduled (not mine, I have no interest in it) just for convenience sake, but it was removed, as you can see. Maybe I'll private message you.