All Forum Posts by: Wyatt Ferm

High yield savings accounts are great. My wife and I use Wealthfront and I think we are getting 4% or 4.25% right now (it changes as interest rate changes so I'm not sure where it's at right now).

I personally think Wealthfront is great. Their interest rate is higher than all the other accounts we looked at. You can start with any amount! 

Hey Anthony! Completely unrelated to your question but I just moved from Minnesota to Florida (St Pete) as well! I hope you enjoy it as much as I have so far! This is going to be my first winter down here so I'm excited. 

Good luck with your move! 

Quote from @Michael Carbonare:

How bad is the housing affordability crisis?  We would need any 1 of these 3 things to fix it, according to Fannie Mae.
1. US incomes surge 60%
2. US home prices plummet 38%
3. Mortgage rates drop to 2.35%, (from about 6.5% now)
None of these seem remotely possible. The housing market is FUBAR.  When the politicians in DC decide to help, you know we're going to pay a hefty price.  How did we get to this?  How do we get out of it?

Adding to what others have said here - we are not in an "everything bubble" as some have said. Housing is at all time highs, rents are at all time highs, college is at all time highs, groceries, entertainment, stock market, cryptocurrency, gold, silver etc, etc you get the point. 

The reality is that we aren't in a bubble, the dollar has just been completely devalued through unprecedented money printing. It's not that the value of all of these things has sky rocketed, it's that the value of the dollar has crashed. So it seems very unlikely that the price of anything, including housing, will ever go back to what it was. 

Hey Ryan! I work for a hard money lender (Backflip) and we use Obie as an insurance partner. They are solid. That said, there are a lot of good insurers out there. 

As for your questions, in most cases your lender will outline specific insurance requirements. At Backflip, for heavy rehabs we require investors to have builders risk but for smaller rehabs we don't. Because you are doing a light rehab it's unlikely you'll need builders insurance. 

Hey Tracy - I work for a hard money lender and have exposure to many investors at different stages of their flipping career (people doing their first flip all the way up to pros doing 10+ a year). 

In order to scale, everything you mention in your question needs to be solved for, which is why there can be so much complexity. Obviously if you don't have deal flow, you can't scale. Once you get deal flow, you need to figure out the capital piece. If you are trying to scale, you don't want to have to pass on an incredible deal because you have all your capital tied up in a current deal. All the best investors I work with have backup liquidity sources in a pinch to takedown a great deal (investors, gap funders, etc). The contractor piece can also be tough but if you have a really good contractor often times they can handle multiple deals at once.

The most important part of scaling is not getting out over your skis. Over and over again I've seen people aggressively expand their volume, only to have everything implode because they were careless about managing risk. 

As others have already said here - it's highly unlikely you will ever find 100% financing without getting absolutely destroyed by fees. In my experience, anyone who says they do 100/100 is probably misleading you.

If you REALLY wanted to try and get deals done with 0 out of pocket, you are better off finding a GAP funder who is willing to take 2nd position. 

Hey Kelly - I work for a hard money lender and many of the investors I work with utilize DSCR loans. The BRRRR method is a common strategy used where investors will rehab a house and then refi into a DSCR loan to rent it out. If ARV is high enough you can get your entire initial downpayment back out once you refi into a DSCR loan which is a really great way to scale a long-term hold portfolio quickly.

That said, it ultimately comes down to the specifics of the deal. 

As a HML I see a lot of different term sheets. I've seen a ton of 90%, a few 95%, but never 100%. Kiavi used to do 100% for there highest tier borrowers but from what I've heard, they are starting to roll that back.

Looks like there are a bunch of different comments from private lenders who might be a better option for you depending on what you're looking for! There are plenty of other great HML's out there that might be a good fit for you as well. I work for Backflip, a competitor of Kiavi, but we are smaller and have a much more people forward, partnership approach that a lot of flippers/investors appreciate.

Sorry to hear that happened Ashley - that's incredibly frustrating. I think Peter covered the best course of action. Going after their license is the most impactful thing you can do at this point IMO.