All Forum Posts by: Tina Glover

I'm still trying to secure my first deal in San Diego (extremely hot market right now and super competitive for houses that need rehab), so I feel your pain Greg. A lot of my competition here comes from owner occupants, who almost always have contingencies and always offer a higher purchase price, but the upside of that is that HMLs + cash for the remainder (30%) actually work on a fair amount of deals, even if you have an inspection/HML contingency because yours is still going to be a significantly shorter contingency and escrow period, less of a hassle, and cheaper to the Seller than going with an owner-occupant. Of course, if you can waive all contingencies, that's even better. I've gotten countered on at 3 deals recently and that wouldn't have happened if they were concerned about the HML/cash proof of funds. And you can get decent HML rates if you call around. I have talked to probably 8-10 different hard money lenders until I found a really good one here on Bigger Pockets! Good luck Greg!

This is awesome John!   I am also in a very competitive market (North Central San Diego, CA) and have been trying to get deals going for a couple of months now, only to be beat out on every offer I have made by (usually) a retail buyer.   However, I have had the presence of mind to NOT force my numbers and, although I have been tempted to seek out other areas of San Diego, I have not as my present market is one of the hottest, and I know my persistence will pay off eventually.  Your story has just affirmed that belief.  Thanks and BTW, awesome remodel!!

Thanks Peter Mckernan and Joe Gigliello for your input!  I would love it if you guys could private message me as I may be about to do my first rehab and am vetting hard money lenders as we speak!   Great info guys!  and Good luck Jonathan!!

Jonathan - since you are in So Cal (as am I) you may want to check out Lending Home.  They are the only HM lender I have found so far that will lend to newbies like me and you.   Their rates range from 7-14% plus 2.5 points.   They will only finance 70% of the present/before rehab value of the home, and won't exceed 90% of the purchase price so you will have to have 10% down at least.  They determine the present and after repair value through a broker's price opinion, for which they charge $299.  If you find a house with a pretty good spread (very possible in Southern California if you find a good deal), it's doable.  And the goal is to only hold the loan for 3-4 months, resulting in a lot less interest than what you would pay if you held it for a year.  $350,000 x .14/3 = $16,333 that you would pay in interest if you held the property 4 months + another $8,750 for points.   I know, it's painful, but there are a lot  more expensive hard money lenders out there and at least you get your foot in the door.  I haven't actually used them yet - still trying to lock down my first flip (San Diego is VERY competitive), but they will be the first call I make when I get to that point (hopefully very soon).  Good luck!!

Hi Levi!  Do you mind sharing who your awesome floor store is in North Park? I'm fairly new to the business, yet to do my first flip, but want to get my ducks in a row as I'm hoping to get there shortly.  I've used Factory Direct Floor Store in Miramar for most of the flooring on my personal residence, and really like their services and products, but it never hurts to have someone a little closer.   Thanks Levi and good luck with your stair problem!

Thanks for the clarification J Scott!   Loved your books regardless, and I'm sure Jocelyn will as well!

Welcome Jocelyn!  As luck would have it, this is my first post also, but I have been a BP member for some time.   Definitely read both of J. Scott's books as Paul Timmins mentions above, but do local research on what rehab costs are.   If memory serves me, J. Scott is located in suburban Georgia (someone feel free to correct me if I am wrong on that) so his estimates on various things may not be applicable to your particular market.  I am in San Diego, CA and almost have to double his costs and, of course, found that out the hard way a number of different times!).  But these two books are awesome and will give you a really good foundation!  Good luck!

I'm considering buying this lender source.   Has anyone purchased or used it in the past and does it deliver what it promises?  I am a beginning rehabber in the San Diego area and need as much potential lender info as I can get, but don't want to waste my money on something that's worthless. Thanks!