All Forum Posts by: John Hixon

@Tom Wayland

The HML I am working with is charging 12% and 3 points.

Usually the more deals you do with them the better the rates get and sometimes if you are going to hold the property as a rental they will give you better rates if you promise to refinance the property using them. But either way HML will always be expensive. Just trying to get a few projects under my belt so I can have a presentation and track record to put together for private lenders.

@Ryan Dossey

I had a person call me at 11:15pm the other night.  He was rather upset that I sent them a letter.  He thought it was ridiculous that I would send something like that and wanted me to know it.  But, he did complement me on that fact that it looked personal.  I guess that's a bonus.  

He said that way the letter looked in the envelope it was like I was personally writing them and it was from someone they hadn't seen in a long time.  I guess they were just upset that no one writes them.  

Got a call off my direct mail campaign from a lady who is thinking about selling her rental and wants me to make an offer but she said I cannot see the house.  She is renting it to a family member and does not want them thinking she is kicking them out.  

The house is 1,500 sq.ft. 4 bed, 2 bath, built in 1974. To my knowledge she has not done any updates other than paint, carpet and tile. She said the roof is 9-10 years old. So, I would assume it is going to need a full cosmetic update. I estimate the ARV at $136,000 and she said that they have $30,000 left on the mortgage.

One GC I spoke with said that on a 1,500 sq.ft. house for paint inside and out, new flooring and fixtures it would be $12,000 - $15,000, if you went with granite and stainless steel appliances that would go up to $16,000 - $20,000.  

My question is, how would you make the offer or estimate rehab costs on a house you cannot see?  

Thanks.

@Alberto Camacho

 Thanks for the reply.  I am supposed to speak with him later today.  He made it pretty clear that the house does not need any updates because he has already done, new paint, new carpet, new hardwoods, fence (3yr old), roof (3yrs old), new a/c,  new tile, new fixtures.  

I will see what he says later today and go from there.  He might not be motivated enough to sell but that's okay because its just one no closer to a yes.

I have a lead off my first direct mail campaign.   This older man (probably in late 70's or 80's) called me and said he and his wife got my letter and wanted to know how much I would pay them for their house.  

I started off the conversation asking him about his house and he told me that the house was built in 1997, has a newer roof (3yrs. old), newer AC (3yrs. old), new paint, new carpet, new wood floors, new tile, new fence and new fixtures.  I asked him if the house had a mortgage on it and he said he owned the house free and clear.  He let me know that he is aware that the real estate market in Dallas is doing really well and prices are going up.   

It sounds like offering him the typical offer of ARV x 70% - repairs will not work and probably make him mad and destroy any chance I would have of making him another type of offer.

How would you suggest I would proceed?  Or what type of offer would you make this individual?

Thanks.

@Joshua Dorkin

 Congrats.  Thats awesome

@J Scott

 @Todd Whiddon

Great job.  That house looks amazing.

@Mark Kvam

 Sounds like an interesting deal and you definitely have a seller who is motivated.  There are a number of great MHP people on this site who I am sure will chime in.  But, if you have a question regarding creative financing like lease options the best in the business is @Brian Gibbons he definitely knows lease options and might be able to offer some other suggestions that will work. 

@Ryan Dossey

I know some extremely wealthy individuals who have tons of gold, like the large gold bricks you see in movies.  From talking to them it is kind of a hedge.  As far as if you should go out and spend a lot of money buying gold, I'm not so sure.  I guess if you have a couple of thousand laying around that you want to put somewhere then you can do it.  I guess I kind of see it as a luxury investment in a way. It's nice to have in case the SHTF but it is not necessary, at least not at first.  Probably a nice way to diversify.  At some point not sure when the debt the US is racking up will hit us and hit hard but when that will happen who knows. 

@Douglas B.

 check out the BP file place.  There will probably be something on there that will work for what you want.

If you want to spend a little money and have a spreadsheet that will do everything you can think of check out houseflippingspreadsheets.com