Cupcake? Heresy? Pony? 4 stacks of plexi?

Bytor1958

Senior Member
Joined
Jan 9, 2013
Messages
11,655
Reaction score
28,396
The method I'm learning is mainly as follows, and can be found at luinc.com

1. Research a 3/2, or 4/3 in a decent neighborhood. Preferably built after 1973.
2. Do your comp and rental research, and repair costs, and run the numbers.
3. Make a fair offer related to asking price.
4. Get a hard money loan for 75-80%
5. Have other folks do the rehab, unless you really like swinging hammers. (I dont)
6. Once rehab is complete, refinance with a conventioal loan and get out of the hard money loan.
7. Rent that sucker and use a property management company. Unless you like getting calls for fixing toilets at 3 am (I dont)
8. Sell in 3-5 years and enjoy the capital gains and the monthly rentals you made along the way.
They didn't follow your #3.

That's the part that pisses me and my brothers off. From the start he said he wanted the property and would pay a fair price. I think that went out the window when his investor took over. I just hope my brother doesn't loss him as a friend now.
 

cherrysunburst00

I don't even care about the pat cictures anymore
Premium Member
Joined
Mar 15, 2015
Messages
16,782
Reaction score
33,491
They didn't follow your #3.

That's the part that pisses me and my brothers off. From the start he said he wanted the property and would pay a fair price. I think that went out the window when his investor took over. I just hope my brother doesn't loss him as a friend now.
Money does strange to people, especially family and friends. If he stops being your Brother's friend, then he wasn't a real friend.

Friends DON'T lowball
 

Bytor1958

Senior Member
Joined
Jan 9, 2013
Messages
11,655
Reaction score
28,396
Money does strange to people, especially family and friends. If he stops being your Brother's friend, then he wasn't a real friend.

Friends DON'T lowball
I'm sure he got that push from the investor. I know they guy and I don't think he'd do that. But ya never know. We''l see after the counter offer. He knew my brother was going to contact a realtor.
 

Pop1655

Premium Member
Joined
Aug 25, 2014
Messages
9,375
Reaction score
24,083
@Bytor1958 @Gtarzan81 you can also back into it. Investors will want at least 6% return.
Figure out what the house would rent for remodeled. Take that rental amount, subtract 6% from it, see what the monthly balance would cover on a 100% mortgage after taxes and insurance. (No such thing and they’ll make a down payment, but that’s the math they’ll use)

1500 rent less 6% = 1415 -250 taxes and ins(??) = 1165 covers how much on a 20 year mortgage??? That’s how much the house is worth remodeled.
 




Top