All Forum Posts by: Tanya Rooney

@John Reynolds Are you still part of the HFF group? Would love to ask you a couple questions if you are!

@Terri Hollinsworth

I have done a couple flips and I have an awesome agent. It makes sense to get a license at some point but finding a good RE agent to look for deals for you and make offers for you and sometimes even go look at houses for you is super beneficial because you can spend your time doing something else. Real estate agents are awesome partners to have so imo you should be doing both. Find a good RE to help you with your first deal(s). Make sure they are a REI agent and not just a residential RE agent, they are not created equal. A RE with flip experience is way helpful.

Then decide if you want to get your license and to be looking for everything yourself. Also, the MLS is a good place to find deals but if you want to be doing high volume of flips, you will not be able to rely on the MLS only for your deals.

Just my opinion :) Whatever you decide, do what’s right for you and not what everyone else thinks you should do :)

Happy flipping!!

@Ned Carey Thanks for the feedback! I know its a sensitive team and I also don't want to show I don't know what I'm doing, so I appreciate the info :)

@Tchaka Owen Thank you! That is helpful. I will touch base with them to figure out where they are sitting and the best way to give them something to walk away with. The last item I saw was the house was purchased for a lot less than the ARV, I now just need to confirm if they took out any additional loans against it to figure out the best price to come to them with.

Hello BP'ers!

I found a house that I am very interested in buying for the right price. We just found out its in preforeclosure. I have never ventured down this path and have only done a small amount of research on it. It sounds like my only option at this stage is to reach out to the homeowner direct with a phone call, drop in or letter(s) to see if we can strike a deal and get them out of their mortgage. Can anyone provide some feedback on how this goes? I am not completely on the up and up on what the conversation is except that I want to buy that house for what they owe or a little more. Do I tell them its just like a typical home sale and it gets them out of their mortgage quickly? If they are 8 months behind on payments, do I pay that up and then the balance of their loan?

If there is a book a should be buying to teach me about it, feel free to suggest. I searched the forums a bit and found writing a letter seems to be the most common. Any suggestions or advice is welcome! Thank you!!

Good choice to join BP!! Such a solid community of awesome people to surround you with advice and support!  Welcome to the club :)

A friend of mine started a brokerage firm a year or two ago and are now hosting events each month and this months just so happens to be geared towards getting started! Lots of great people to meet and lots of people to give plenty of pointers :)  link below  

You will find endless ways to meet up with people in the cities (use meetup to search some more opportunities as well as bigger pockets meetups listed on the site) which is awesome for all of us to try and collaborate! Way to develop a goal. now just make the plan to lead up to knock that goal on its *** 😁

https://www.eventbrite.com/e/a-foot-in-the-door-real-estate-investing-for-beginners-tickets-54115759694?aff=ebdssbdestsearch

@Karam A Tascoe. Nice work on this one! How did you pick the town/area you decided to invest in? I am reading David Greene’s long distance investing and excited to start researching different areas to buy rentals!

Way to hit this one out of the park!!

@Kiara Harewood Good choice on postIng thIs! Your ARV spread is something to look at as well. When I run numbers I take a conservative ARV from the comps x 70%. In this case you will need to get the house for about $200k to make some money. Hard money in my market loans out 70% of the ARV which should include your repair values. In this scenario you would need to be all in for around $240k unless you plan to use private money for the flip itself. Also, HM lenders will want to see skin in the game so you will likely have to come with closing costs on some portion that day (they swap a check for a check basically). Lastly, what do you have built up for reserves? HML’s require you to have a portion of your total budget in an account and available. And you’ll really want to have it when you have 4 contractors that want money the day they finish and your HML needs to see progress before they will cut a check to you. A lot of contractors want checks written out, not a credit card to swipe. A couple things to think about! Good luck on whatever route you decide to take!! :):)

Thanks @Amy Ranae! I owe a lot to you for giving me the fire!! :)  And the agent and the ongoing support :)

@Mark Petitmermet Thanks! Best thing is to just hop in and get started!! Exciting stuff :)

@Josh Cook Thanks! Check out this post. It posted before I finished (user error though!)

https://www.biggerpockets.com/forums/850/topics/64...

Purchased on August 12, construction wrapped up November 1 and found it on the MLS!

@Richard Sherman Thanks!! :)

Investment Info:

Single-family residence fix & flip investment in South Saint Paul.

Purchase price: $107,000
Cash invested: $33,000

Contributors:
Amy Ranae

First Flip house was purchased in August, out on the market in a November and offer accepted in December. Closing January 2019!

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

I enjoy construction projects and thought this was a great way to start out. It’s also what I was able to find for a deal!

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

MLS with the help of my agent Jamie Abraham with Brick & Banister. My first offer was $24k lower than asking ($108k). We settled on $115k. Three days prior to closing the appraisal came in lower than our ARV's so either more money was needed for funding, a new price needed to be negotiated or I had to walk away. New price was negotiated at $107k.

How did you finance this deal?

My savings account and hard money from pine financial.

What was the outcome?

Flip took a little under 3 months. The house sat on the market for about 5 weeks. Closing is set for January 2019!

Lessons learned? Challenges?

My husband and I both learned the value of time in very different and beneficial ways. I need to go with my gut more often and he needs to know when to say hire that out! Next time we will use more subs and contractors for the work and we will push harder on the schedule!

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

Amy Ranae owns Brick & Banister Brokerage and her agent Jamie Abraham does flips and rentals so is a great partner to find flip deals with!