what makes your house special - flipping in Texas

Consider your potential flip, a 3-2 brick on non-descript street. you payed the right price and with minimal repairs can probably rent or firesale and be ok. But to make your profit and sell quickly what makes your deal special compared to the existing inventory.

curb appeal
floorplan
landscape
bonus rooms (extra bath, bedroom, office) consider your client /target
price (if it wont sale, your too high)
quality of rehab / construction
offering flexible terms / owner financing

This is just a checklist when considering how you stack up against the competition.

www.texasrehabloan.com

looking at new property

Just a quick tip. If looking to acquire 2 properties at once, why not start in the same neighborhood. Offer buys 2 choices. We found one of the larger properties in the area and can still sell below market value. (5 bedrooms and big lot). House would rent for 1000-1100 month, home cost no more than 60k (includes repairs).

Anyone interested in rental homes in Dallas call us, we are finding some very good rental and lease - purchase homes.

www.dallasinvestmentrealestate.com
www.texasrehabloan.com

Flipping from the lenders view

I look at potential flips everyday. We loan 70% of ARV. I see lots of eager and competent investors but sometimes the enthusiasm clouds thier ability to judge a deal.

Dont push values, dont chase deals (banks are chasing investors now, let the deal come to you and your offer).

We dont want to own the the property we loan on nor do we want to put an investor in a position to fail.

ex: sell a house for 100k, what do you net.

6% commission
3% seller contribution or more if FHA
1% title policy

So a minimum of 10-12% closing costs on most deals. You net 89k, if we had loaned up 75%, after your holding costs (interest, utilities, insurance, budget overuns..)

you may well be near a net of 80k, so if everything goes pretty well you made 10k , then taxes, so you walk away with 5-7k. Not a good return and not a good risk by most standards.

Also, if you decide to refinance, that appraisal had better be tight. Its very difficult to finance beyond 75 - 80% for investor property. With no title seasoning you can expect an appraisal review.

The conclusion: dont push value, stay in the 70% rule or less and have realistic expectations about your holding time.

www.texasrehabloan.com

Delays in Closing due to probate

Typical deal, going through probate will take about another week.

Watch for delays such as surveys, title work, bank approving loan, offer......it goes on.

Being a lender we are used such delays, its good they are not waiting on us. I'm looking to make top 10 excuse list for reasons for not closing. However, we usually fund fast, see my lending website for some insight into how hard money for flips may work.

http://www.texasrehabloan.com/

New Property

Now is a time to buy in Dallas I believe. How about a 60k home with comps supporting 100k. Home needs work, perfect. We should start work in a couple of weeks. I'll try and post some pics. As of yet I'm not certain if we keep as rental (rent for 950) or flip. Market is improving and there is not much inventory in this subdivision. (buy smelly , dirty, homes with problems) in a good area. THis one has one of the best lots and sq. footage in the area.