flipping houses with hard money in the san francisco bay area
DESCRIPTION
Hard Money for Fix n Flips – New Hot Program With the housing market back with a vengeance, there is now the smell of money and opportunity for the revived California housing market. It was only a matter of time before the money began to loosen. I’m happy to announce a strategic partnership now exists that will enable me to cover the gamut of hard money lending. Being among the foremost hard money lenders in the San Francisco Bay Area is my top priority. As a house flipper myself, I know what is needed. Ladies and Gentlemen: Allow me to introduce you to our newest loan program; a loan of 90% of the purchase price. That’s correct 90%! Talk about a house flippers dream. No fund control, just a purchase money private money loan. With hundreds of millions in private money to lend, I encourage you to learn about our fast track program. This is a must to get you set up in our system and will help expedite a loan request.TRANSCRIPT
FLIPPING HOUSES WHILE
LOOKING GOODON T.V.
Beau EcksteinBeau Eckstein is a seasoned real estate veteran with more than fifteen years of real estate sales, residential mortgage lending, construction financing and private money loans. Currently Beau is Managing Partner of SFR Ventures, Inc., which is the origination arm of a private money fund specializing in construction. Beau is also managing Service 1st Realty, which is a real estate brokerage firm in Walnut Creek, California. Beau is an active investor and likes to partner with architects and builders.
He hosts an investor meet-up group and through his online marketing was found and casted for a new HGTV series “Flip It to Win It”, which is airing in March 2014.
For more information, visit his website:www.beaueckstein.com
PLANNING YOUR FLIP
Do Your Homework
Do Your Homework
Have your credibility package prepared and ready.
Do Your Homework
Have your credibility package prepared and ready.
Have all of your financial partners/money lenders lined up.Know their terms and what their appetite is for deals(deals they prefer).
Know the market; the subdivision where property is located, key selling factors, buyer’s preferences, including knowing your target buyers-your avatar.
Know the market; the subdivision where property is located, key selling factors, buyer’s preferences, including knowing your target buyers-your avatar.
Know the level of finishesneeded for the economic level of the neighborhood.
Know the market; the subdivision where property is located, key selling factors, buyer’s preferences, including knowing your target buyers-your avatar.
Know the level of finishesneeded for the economic level of the neighborhood
Don’t over-improve for the neighborhood.
Have a formal line item budget, with cost breakdowns, from your contractor.
Have a formal line item budget, with cost breakdowns, from your contractor.
Scope of work detailed with level of finishes. Leave no questions unanswered.
How will you navigate the permit process, i.e. over the counter or will you need to take it through the planning department. (Certain markets may need 6 months to complete the permit process).
How will you navigate the permit process, i.e. over the counter or will you need to take it through the planning department.
(Certain markets may need 6 months to complete the permit process).
Contractor Agreement – Be certain you know your state’s website for access to information about licensing, mechanics lien information, lien releases, etc.
Contractor Agreement – Be certain you know your state’s website for access to information about licensing, mechanics lien information, lien releases, etc.
Be certain contractor has sufficient liability insurance, which also covers workman’s compensation.
Be certain expectations of investors is reasonable.
Be certain expectations of investors is reasonable.
Be sure to net your project numbers out carefully.
Be certain expectations of investors is reasonable.
Be sure to net your project numbers out carefully.
Build your professional power house team. Don’t attempt to do it all yourself.
Be certain expectations of investors is reasonable.
Be sure to net your project numbers out carefully.
Build your professional power house team. Don’t attempt to do it all yourself.
Be conservative. Don’t do “out of the box” deals.
STAYINGON
SCHEDULE
Contractors Agreement: Schedule milestone payments based on performance, as scheduled.
Contractors Agreement: Schedule milestone payments based on performance, as scheduled.
Agreement must include clauses detailing terms of Change Orders.
Contractors Agreement: Schedule milestone payments based on performance, as scheduled.
Agreement must include clauses detailing terms of Change Orders.
Detail procedures for the draw schedule.
Be sure contractor has financial strength and won’t jeopardize the project.
Be sure contractor has financial strength and won’t jeopardize the project.
Incentivize your contractor with bonuses.
Be sure contractor has financial strength and won’t jeopardize the project.
Incentivize your contractor with bonuses.
Build long term relationships and work with people you like and trust.
Know the strengths of your contractor (what they do best).
Know the strengths of your contractor (what they do best).
Be sure contractor and you know the permit process of the city and town where project is located.
STAYINGON
BUDGET
Make sure budget has a Contingency Reserve.
Make sure budget has a Contingency Reserve.
Do your homework up front and avoid being penalized at the end.
Make sure budget has a Contingency Reserve.
Do your homework up front and avoid being penalized at the end.
Be careful if this is your first project with the contractor.
Make sure budget has a Contingency Reserve.
Do your homework up front and avoid being penalized at the end.
Be careful if this is your first project with the contractor.
Get multiple bids.
Read trade publications.
Read trade publications.
Hire a construction manager.
Read trade publications.
Hire a construction manager.
Have clause in Contractors Agreement and with attached addendum that includes the budget.
Read trade publications.
Hire a construction manager.
Have clause in Contractors Agreement and with attached addendum that includes the budget.
Make sure Scope of Work is detailed for the budget.
REHABBING TIPS
Go to Houzz.comand/or other websitesfor design ideas.
Go to Houzz.comand/or other websitesfor design ideas.
Walk properties in subject neighborhood that are for sale to get design ideas. Know your neighborhood.
Don’t take on too many projects if systems aren’t in place.
Don’t take on too many projects if systems aren’t in place.
Network with other contractors and real estate investors to know their suppliers. There are more options than Home Depot or Lowes.
Pay attention to the details.
Pay attention to the details.
Look for ways to maximize subject properties space.
Pay attention to the details.
Look for ways to maximize subject properties space.
Know what buyers want.
Pay attention to the details.
Look for ways to maximize subject properties space.
Know what buyers want.
Always stage the home when preparing for the sale.
SOURCING DEALS
Network at REI clubs.
Network at REI clubs.
Pull deals from the MLS.
Network at REI clubs.
Pull deals from the MLS.
When doing a flip in the neighborhood, put a sign in the front of the house and hire door knockers to scout the neighborhood.
Network with private money and hard money lenders.
Network with private money and hard money lenders.
Find contractors who want to become investors.They are often the best deal finders.
Let every real estate agent know that you are an investorand they can represent you in a transaction they find on your behalf.Agents love to double end deals.
HGTV EXPERIENCE
S
TV people don’t truly understand real estate flipping,i.e. timelines, costs, etc.
TV people don’t truly understand real estate flipping,i.e. timelines, costs, etc.
TV doesn’t add weight, it takes pounds off.
TV people don’t truly understand real estate flipping,i.e. timelines, costs, etc.
TV doesn’t add weight, it takes pounds off.
Getting television experienceis great for business.
Questions&
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