Geoff Nowlin is a Phoenix Realtor. Today, Geoff is actively soliciting Clients and delivering high quality, tech and satisfaction to Clients all over Phoenix, Maricopa County and Pinal County Arizona. This Blog is about all things Real Estate.
This video is designed to show you how to get all the money you will ever need to fix and flip a house. There are too many line items to list in this blog. Basically, if you offer a rich person double digit returns on borrowing their money, some will loan it to you. Obviously, you get what you negotiate.
Here is my question: How do you find the rich people who wish to loan money? That’s what this video addresses. The more rich people you can find, the more confidence you have in your ability to fix and flip homes. My challenge to you, watch the video and call me with questions.
Once you solve the money problem in real estate investing, the easier your life will be. Hope this helps.
If you need to buy or sell a home, see us at www.5kflatfeelisting.com. We look forward to hearing from you.
Guess what? High End Phoenix Quad’s don’t cash flow. Duh, no one should be surprised by that. This blog is a follow up to yesterdays. Sellers of quad’s are hilarious. They tell me baloney stories like
You can raise rents to 1 million per month. Nope, you can’t. There is a thing called COMPS. The job of the renter dictates what they can pay in rent. Every Seller thinks you can just magically increase the rent $500 per month. It is just not so. Try it for yourself. Then let me know how it worked.
They have 100% Occupancy. What, no way in hell that is true. Every time a tenant moves out, the landlord has to go in an repair/clean. This takes a moment and by obvious logic, it is impossible to have 100% occupancy.
If you put enough down it will cash flow. Ha. Duh. That is true but that would eat up all your cash and ruin your ROI. In my world, a property must cash flow near 100% financed or I am not interested.
Cap Rates don’t count in this market. Wrong. Capitalization Rate (the amount of money the property throws off per year) is always, always, always important. In my world, if it doesn’t throw off at least 7% to profit, I don’t want the building. If you are like me, you got into this business to make money not to lose money.
No evictions at my buildings! Wrong, sellers try to tell me they never ever ever have to evict. I just don’t buy it.
No repairs at my buildings! Really! All your tenants work at Home Depot and can fix everything without calling the Landlord. I don’t buy it. You would be smart to
No Reserves! Reserves are moneys set aside for the huge repairs. Like the roof, driveway, HVAC, etc. Smart investors hold back 5% of the rents in a separate account for these big purchases. Is it not true that the earth is consuming a piece of the roof every day? Sure it is and you had better plan ahead for it.
Summary, don’t fall for Sellers claims. Do you due diligence and crunch your number to the dollar. If you need help doing that, feel free to call. Would be happy to help.
If you need to buy or sell a home, see us at www.5kflatfeelisting.com. We look forward to hearing from you.
We looked at low end Quads and could not cash flow any of them at all. Looks like the Californians have totally converted our market to that of CA.
My client was desirous of moving into 1 unit and renting the other 3. Great idea. A Buyer generally must stay in their Primary Residence (if they get a loan) for at least 6 months. This client wants to buy a new Quad every 6 months until she has 20 Quads or 79 rentals. Her plan then is to sell the 10 dogs of the portfolio and pay off the 10 good units. Again, a great idea. She would need to move twice per year but so what. Maybe she leaves the furniture and rents those units as furnished. Her theory is “what am I willing to do to be a millionaire”. Love her attitude.
We had lunch with Steve Oliver of Cardinal Financial. They are a Mortgage Broker, Mortgage Bank and a Portfolio Lender. He can get her into a Quad on an FHA 3.5% down and he can fix her credit as well. The problem is, he can only do it once. Then my client would need to get a traditional 80/20 loan.
Steve Oliver
Cardinal Financial
Loan Officer
(602) 625-5995
steve.oliver@cardinalfinancial.com
My clients dream will not come to fruition in Phoenix. Our only choice is to switch Cities. More to come on that.
If you need to buy or sell a home, see us at www.5kflatfeelisting.com. We look forward to hearing from you.
