All Forum Posts by: Stuart Fox

Does anyone know a good source for a standard operating procedure manual for a house flipping business?  

Especially standard protocols for every flip - like certain things to always make sure are done or be aware of (watch out for busy roads, flood plains, power lines overhead or nearby, no carpet in kitchen - bathroom - eating area, not next to apartment complexes / commercial developments, proximity to public transportation, HOAs, etc)

Not sure if something like that is out there I can get or purchase - everything is in my head from the past twenty years I've been flipping homes and I need to get it down so I can eventually walk away from the business but have it still operate like I am here everyday.

Thanks!

My dream loan would be a lender that funds deals in Cleveland Ohio & has a no seasoning 3 year I/O portfolio loan at 80% of LTV based on the appraised value using the income of the asset (not based on what I paid for it), no cash out required, no minimum loan requirement with low rates and low points / fees

@Caleb Jordan No cash out, just a rate & term refinance

Does anyone know a lender that will refinance rental properties based solely on the appraisal - with no seasoning required?  

Every lender will refinance after 12 months, a lot after 6 months, and I have heard investors talk about lenders that will refi after 3 months or even with no seasoning.  But most want to refinance based off the purchase price / rehab costs if I have held the property just a short period of time.

Thanks

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $120,000
Sale price: $167,000

I bought this flip in Washington state.

What made you interested in investing in this type of deal?

Solid flip

How did you find this deal and how did you negotiate it?

Previous rental

How did you finance this deal?

Private lender

How did you add value to the deal?

Fixed up the home

What was the outcome?

Sold on the MLS

Lessons learned? Challenges?

Good to buy and rent a place for 2-3 years then sell it

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Todd Bunger of Sotheby's in Spokane WA

Eric Shumaker is the best eviction attorney I've used. I have quite a few rentals, and own a property management company in Spokane. We use Erik for all of our evictions

Best of luck to you

Stuart

I'd get on Zillow, find several homes that look like they have potential and start calling the Realtors associated with the listing. These are agents that work the zip code associated with that home. I'd also call property management companies asking about areas in Detroit that work for out of state investors that want to have rentals. Finally, connect with Detroit investors online here on BP, Connected Investors, Facebook and similar networking sites. You'll want to work with a turn-key company most likely. Talk to a lot of folks and get as much local data as possible. Remember that, for the most part, the cheaper the home and the higher the cap rate - the more likely you'll lose money on the deal. Be very careful of investing in C & D class real estate.

I love Chicago. We are just opening Detroit for our investment team but want to move to Chicago next.

Good to hear Chicago is going strong!

It's all about property management. I own a lot of C&D class SFRs and small plexes. Upkeep costs more, there are more tenant issues, but overall you can make money here. But I've also been investing for over twenty years and know the business. The recommendation for newer investors is to stick with B properties if possible. But if are ready to jump in, try one or two for 4-6 months before buying 20 of these tires of properties.

Let's talk, I buy in the Detroit area.  Enjoy your time in this amazing city!

Thanks