All Forum Posts by: D.L. Berry

Cudos to you for stepping into real estate investing at this time. Well, it sounds as if the household expenses are readily met. It's good to see some savings, and the ability to qualify for a bank loan. As this is your first flip I would suggest utilizing the bank loan. It will be more of a headache, from a paperwork standpoint and you will be taking on debt in your own name. My concern is that, as a new investor projects seem to take longer and have more cost overruns. I would much rather see you have money in the bank for those contingencies, than to get to the end of your cash and have no place to go...When deal #1 sells and the profit is in the bank, we may talk about a different program for deal #2. In the meantime, remember the Boy Scout motto, "Be prepared."

Regarding the offer, by all means start at the 55K, less the 14K in new damages, less a few thousand more (5K-10K), just for aggravation (you now have more work to do....). Hopefully, by now the HUD rep understands that there is more deterioration to the property. This adds additional motivation for them. Remember, your offer needs to be at a number that will help you achieve your investing goals, if not, just remember; NEXT (there's always another property).