All Forum Posts by: Jim Keller

I have done 7 deals in the last 12 months. I have used 3 different lenders and had as many as 3 going at one time. My first 3 deals I did with a combo of hard money and the same lender did a bridge type loan for a combined 92% LTV on the purchase price and I went out of pocket for the fix up and payments....... the first 3 were all around $200,000 so I ended up having up words of $65,000 in each deal.

The next 3 I did with a 80% ARV loan that is very expensive but finances 100% of the purchase and the fix up with no payments for the first 105 days..... so big leverage and a little less yeld but you can do more than 1 at a time for a small among of cash.

The newest one I have is 70% of ARV with 2.5 pts and 11.5% interest. My out of pocket is just a little more then the second option and I get a bump in yeld also. With this option there is no 105 day time limit so doing things like additional square feet is possable.

Since starting though I have to say I have met 4 people that want to partner with me one I met on bigger pockets don't focus on the money.  Find a deal that anyone can see is good and do it.  On all of the deals I listed I made over $29,000 on all but one and on that one I made $16,000.  Focus on the deal and the money will find you.

Put your deal in escrow and find the cash I have a list of real estate clubs and meet ups to market to.  Once you find this great deal I'm talking about make a flyer and sell half the deal to a friend at the club if you need to, i bet you wont have to....... thats why rich uncles are rich they know a good thing when its handed to them...... good luck

Jim 

I have done 7 deals in the last 12 months. I have used 3 different lenders and had as many as 3 going at one time. My first 3 deals I did with a combo of hard money and the same lender did a bridge type loan for a combined 92% LTV on the purchase price and I went out of pocket for the fix up and payments....... the first 3 were all around $200,000 so I ended up having up words of $65,000 in each deal.

The next 3 I did with a 80% ARV loan that is very expensive but finances 100% of the purchase and the fix up with no payments for the first 105 days..... so big leverage and a little less yeld but you can do more than 1 at a time for a small among of cash.

The newest one I have is 70% of ARV with 2.5 pts and 11.5% interest. My out of pocket is just a little more then the second option and I get a bump in yeld also. With this option there is no 105 day time limit so doing things like additional square feet is possable.

Since starting though I have to say I have met 4 people that want to partner with me one I met on bigger pockets don't focus on the money.  Find a deal that anyone can see is good and do it.  On all of the deals I listed I made over $29,000 on all but one and on that one I made $16,000.  Focus on the deal and the money will find you.

Put your deal in escrow and find the cash I have a list of real estate clubs and meet ups to market to.  Once you find this great deal I'm talking about make a flyer and sell half the deal to a friend at the club if you need to, i bet you wont have to....... thats why rich uncles are rich they know a good thing when its handed to them...... good luck

Jim 

Years ago when my team was just me.  I remember thinking that short sales were "to much work".  The reality of the post subprime melt down dictated that I change my mind and learn how to market, negotiate, and sell short sales.

Eight years have past since we made the switch to short sales.  I'm just wondering when will the public come to the party. Today I'm a little defeated by yet another person that hasn't paid there payment in 4 yrs and last night they say Foreclosure may be what they DESERVE.

Last night was just another night in my investment carrier.  In January 2014 I switched and I'm no longer an agent, I just invest now. We use our understanding of debt relief to buy short sold and other homes all over southern california.

To date we have done well in this investment space, and our activity has helped us find 4 other off market homes.  Most of the clients now aren't upside down but what I have found is the equity position was never the real question.  Most of the 80/20 and no income no asset buyer's never could really afford the home they purchased, and time has just run out for them.

I See this investment play as big opportunity even if your late to understanding the complexity of this type of deal.  This is the lowest hanging fruit on the tree and some of it is even on the floor, waiting to be picked up.  

Start today to build your team of compitaint advisores.  Tell everyone you know your the goto person for this specialty. In this time of bad news, unemployment, and fast approaching retirement "for me" the time is now to act.  

Get up people and work... their are so many deals out there 3 extra deals in the next 12 months could make you $100,000+ and if you can do 3 you can do 30.........

Good luck all

Jim

@Ryan Billingslsy

Ryan,

I love the topic, and have been pitched no fewer than 15 times over the last 7 years.  We have seen many very well thoughtout programs and will assume your system is top quality.

it sounds like you considering paying $3,500 per month. That's $22,000 in 6 months and i'm big picture kinda guy and wow that's a huge picture.  I just see $44,000 per year going out and if your marketing expence is say 10% of your gross you should be making a minumum of $440,000 per year.  Not an impossible number but 18 deals per year is a huge number if you can averge $25,000 per deal.

If your expecting a higher cost I would understand and I'm guessing your existing program has paid you off well.  I'm very curious as to your numbers.  Mail campaigns are controlled by rate of return and I like how a spread sheet can tell you so much about what's really happening, i would love to hear the numbers of your success. I want to  believe. ......

good luck

JIM

@Robert Kriedermann

Robert..... your position is protected by a contract as well as a mortgage.  Try backing off her a little, I'm not a big fan of going to my knees  for the seller to close.  In California you open yourself up to a lawsuit, just not worth it.  I hope you have some interest on your note an exceleration clause would be real impressive to hAve ta Ken care of that much detail. 

 I did say back down, what I didn't say was go away.  In my time as a new home sales manager for a multi billion dollar home builder and resale agent with combined closings on over 600 homes I learned even crazy people need to sell. You might as well be the buyer just let her come to you, she will remember why she is selling sooner or later.  It's not like you can force her to sign a grant deed.  Show her some love.

good luck

JIM

@Colin L. @Scott Smith

We no longer put anything but a small section of grass "if any" in any home we flip.  Last summer we flipped a 4/2 in Moreno Valley and put grass in the front and back yard.  We felt the back yard grass would give us an advantage in selling price because no other flips on the market had an improved back yard.  

In hind sight we could have achieved the same advantage with some sort of zero scape "see youtube vid" https://www.youtube.com/watch?v=HZUqPT2A6k0 most of what you see in this video can be achieved for $1,500.00 +- and the impact is very impressive.  The 25 to 35 year old buyers love it.  

By the way my water bill for the 4 months tending the grass in Moreno Valley, Ca was over $500.... that's just for water, not installation and maintenance.  We all work to hard, to give money away like that, Never again

Jim

@RonScribner, @LeonardL.

Ron, well put..... I have a associate the purchased a note from as you say a small momma papa private lender and got control of a 16 unit apartment building.  With that said hearing you talk about the filing system at you bank only makes me feel better about not falling for some expensive design, print, and mail campaign 

I have 4 bird dogs in the field right now that I guide everyday, this reminds me there is no shortcuts, "no offence Lenard" for hard face to face work.  Of course I will still spend time looking for the next best thing.  We will always stick with the classics face to face belly to belly zig ziggler you be proud.

thanks 

Jim

Show me the money......

Jerry Mc Guire had it to prove himself just like all of us that fix and flip homes.  I'm starting my 8th deal next week and have developed a great team of Realtors, contractors, and bird dogs finding me deals, rebuilding a quality product, and getting me top dollar when I sell.

In our market in Southern California we have figured out how to aquire property on a 12 to 25%  margin. So far to date we have only been able to close on the healthy deals with the bigger margins.  We just don't have the cash flow to work on more than 3 at a time. Theremember are opportunities we are passing on and wholesaling and I see it costing us money.  

We are doing all we can right know to better understand how to attract, and manage a private investor.  I would love to here how any of you have done it, what you did to attract, and what is your on going strategy when it comes to accounting and financial reporting to your investor.

Thanks for your help 

Jim 

Hi biggerpockets,  Today is a big day for us my bird bog found us a great home in the city of Perris, CA.  We will be taking over a small home with a 44k first mortgage that is 9k behind and paying the seller 12k to walk.

My question is about the "right to cancel" period the seller has.  Is it 3, 5, or 7 days.  This is my first subject to I have done in many years and don't really know that answer.  

Thanks Jim

@MichaelNalbandian

I started about 18 months ago in the Riverside area.  We have completed 7 deals and to date have made money on each one. Just keep pushing, we have found money just finds us now.  

It sounds to me that your aqusition stratugie and price point is where I would start, the right lender is the key if your buying without cash contact me and I will share with you what I did after my first flip and how that grow.