All Forum Posts by: Steven Silva

In my humble experience, this seems like a very big stretch for any lender. It's not a surprise you've having trouble finding a lender for one big loan. You'd definitely have to move towards a private lender for something like this. But, your rates would also go up to the 7.5%+ 

I would think you'd be better off just to refi them one at a time. It may be better for you in the long run anyways. Say one property goes south... if they're all tied together in a single loan, it's hard to get rid of one of them. 

@Matt M. My guy is out of town until Monday. Do you have a recommendation for someone in Denver area?

I figured a lot of people saw this. So, when they didn't get any offers on it in the first week, I offered $15k below their sale price and they took it. I also have faith in my contractor. I agree the area isn't great, but was surprised by the numbers and I've seen a scrape and build in the area that I'm trying to get more info on. What kind of deals are you looking for? 

Hello Matt and welcome. 

I'd suggest looking for B/C multifamily properties in the springs that are under $70k per unit and go from there. I personally always suggest value add deals. Since you are military, make sure you stay on top of the project, especially if you're doing the work yourself, and don't let it sit vacant for too long. Rehab 1 unit at a time while other units are occupied, or hire someone to knock out the work in 4 weeks. 

All my multifamily I have bought have been from military guys 1-2 years into their investment. They were trying to do the work themselves and they run out of money because they have negative cashflow. I bought a 4-plex there last year for $200k and appreciation is crazy, I haven't found anything close to that since. The overflow from Denver is affecting the Springs market. 

@Bill S. for ARV, I don't have exact comps to support it. I have ugly houses at $200-210k. I also have 2 great flips: one that's 400sqft less under contract at a list price of $219k; and the other was similar sqft and was an over the top flip, sold for $245k. So, It could go for $230k? However, there is a 2001 build that is flipped that is a 4/2 (extra bath) that is under contract for "way over list" at a list price of $215k.

I'm just not sure, other than it wouldn't go for less than $210k. I put my agent out there to connect with the under contract homes to try and get info on contract prices. 

Thanks guys. Just wanted to get an idea. I meant conservative, as in I believe the rehab to be below $45k probably less, ARV to be above $215k, as high as $222k. My contractor does have multiple subs. I worked with him through previous job I had, He was able to turn 10 houses a month for 2 years, so yes $45k is a large rehab, but I've seen him do that in 4 weeks.

The wholesaler is a reputable one, and has never had this happen where a deal is stuck in escrow. They do a lot of business in Denver. They feel their reputation is on the line and offered to refund my money because of that.

I am STUCK in escrow on a fix-n-flip in West Commerce City (unincorporated Adams county), which is just north of downtown Denver. I am told the court paperwork will take another 3+ weeks process (close around 5/20 I guess). Long story short, wholesaler gave me the OPTION TO BACK OUT and would refund my deposits & earnest money of $8k (I'm inexperienced at how title will deal with reversing closing, waiting to hear back). 

My ARV calculation is the only thing that may make me want to jump ship, as well as opportunity cost of missing other deals while just waiting for this to close as it could take longer than 3 weeks.

Numbers on the deal can be found on the attached screenshot from the bigger pockets flipping calculator. I feel these numbers are VERY conservative... I'll leave it at that. 

4 bed, 1 bath, 1450 sqft, built 1955, new main sewer line in 2015, end of cul-de-sac that leads to school park, 1 block from future 72nd ave N-line light rail station (completed 2018). 

Would you do this deal? 

What would you say ARV is? 4111 E 71st Ave, Commerce City, CO 80022

Thanks @Matt M. Will do. 

Thanks guys. I have been clarifying holding costs with title and lender today. I may have jumped the gun. 

So, my original concern was utilities, interest fees $48/mo, taxes, & insurance. Someone else said I can adjust insurance back to the right closing date, I am working on that now. I also reached out to title to see if they are adjusting the prorated taxes for whenever escrow closes since I signed paperwork it mentioned prorated tax amounts. 

Title said: "Yes, I have the lenders funds and they are in escrow until we close the other file. I was unaware that one of the seller’s was deceased and that XXX was signing as power of attorney for the other seller. So we are at the mercy of the court. We have closed, but in escrow pending the completion of the closing of the other file."