All Forum Posts by: John Zuch

Justin Hackney I'd be interested in talking over options sometime. PM me if you'd like to grab coffee.

Justin Hackney I'd be interested in talking over options sometime. PM me if you'd like to grab coffee.

We use norm praet and he's always been reliable and helpful. His offices are now located in morrisville.

Any recommendations for a broker/loan officer in Raleigh NC experienced with FHA commercial loans? Any need to knows about requirements? Also, can you refinance into one or must use for acquisition?

One thing we always have to keep reminding ourselves of is to know the market you're in. I mention that because in your post you said 2 baths seem to be in short supply.  Does that mean many buyers are purchasing homes with less than 2 full baths? Then perhaps it is still a good deal worth pursuing.

I like to do things right and it can be hard for me not to touch everything on a project when the market here doesn't always demand that everything is fully updated and renovated.  Do what is expected in your own market.  If a 3/1 is the norm, than you shouldn't necessarily discount it just because you can't add another bathroom.

My guess is that people who are funding deals with their own money are more open to a deal like that because they don't have to be as tight on their numbers. Let's say for your example that the house needs $20k.... My simple quick analysis would be $260-$8k (approximate closing costs- we list flat fee MLS) $252k-$22k (rehab+holding costs)=$230

If we purchased at $188k (80% of $260k-repairs) and borrowed acquisition and rehab... and then paid 7% interest... we'd owe $222,500.

So $230-$222 = $8k.  I wouldn't even consider a house like that... Now if I wasn't paying interest and using all my own funds, that'd put the profit back around $22k.  I'd probably consider it if the house was around 1500ft and I was confident in my due diligence and rehab repairs.

For us, as we try to fund our deals entirely with private money,  our margins have to be pretty big to cover the risk of our lenders and ensure that we didn't go through the hassle to end up with a lame pay day...

I'm not sure if this was helpful or not.  I would suggest that you're really in tune with what ways your buyers are funding their deals so you know what kinds of deals appeal to what kinds of buyers.  Hope I didn't just state the obvious. :)

Where are these meetings held?

Because we haven't done any direct mail and have a hard time meeting great wholesalers, we've had a number of times we were scrambling because our investors had money available and we just couldn't find a deal quick enough. We've basically never followed the 70% rule.. But we did use it initially as a general reference to ground us from doing anything insane. J Scott's advice regarding making $10/ft profit was helpful because it accounts for the size of the house and the size of the remodel. I can't fathom paying investors and still meeting the 70% - repairs. We wouldn't have done a single deal yet if we were waiting for that. We've had a lot of luck with the MLS but that's getting harder and harder too. We use common sense with a little room to spare when we analyze our leads. It's worth mentioning that we are usually doing pretty large remodels, not lipstick jobs.

Thanks Dave Foster that's what I figured...

Jeremy Drawas would you PM his info as well? We are often struggling to find good handymen! Thanks!! Does highlighting and the @ symbol not work for mobile posts?!