The percentage can vary widely. At this point in time many are in the range of 12%. The bigger difference can be the points charged.

One point equals one percent of the loan amount. By charging a borrower points, a lender effectively increases the yield on the loan above the amount of the stated interest rate.

Here again they will range from 1 or 2 points to 5 or more. The higher the risk to the lender, typically the higher points charged.

This is a great way to do and many investors take advantage of this funding possibility. Everyone’s situation is different, so be sure and consult with a financial professional.

In a good market, I try and have a close to close in 4 months, however I typically budget for a 6-month holding period. A large factor in the time frame is going to be the scope of the renovations.

Not necessarily so. They will be involved in making sure your numbers are realistic and that your project appears to be a good investment, but usually not as involved after that, other than checking in to see the progress of the flip.

No. The majority of mine are, however, that is totally between the flipper and investor and can be negotiated as each see fit.

Normally it is in the extent and quality of the finishes. Rentals typically are renovated to withstand tougher wear and tear, while sales may have more time spent on aesthetics and upper end finishes.

Typically, around water as in kitchen and bathrooms. However, check with your electrician there could be other areas that are required.

Aluminum wiring was used some between 1968 and 1972 in our area. Some areas may be different. We have bought several homes with Aluminum wiring, however for the newer investor I would be cautious. Some areas may require you to rewire. Ask your electrician to be sure.

This happens often. Projects often will change during the process. You may run into some overages and need to adjust elsewhere.

This can vary widely depending on the price point you are in. We do a lot of first-time homebuyer homes and will use a step or two up from apartment grade.

For newer investors I suggest nearly daily if work is going on. This does two things. 1. It keeps you constantly updated, and you always know where things are in the project. 2. It can also help with your contractors. If they know you are there regularly, they will be too! As you begin doing more flips, you may not be able to visit daily. I average about once or twice a week now.

As with other finishes, see what is popular and desirable in recent sales in the area. We tend to stay with more neutral finishes and let the end buyer add their bold colors, etc.

Most important items: Have good numbers to show them and be able to explain them. Investors are looking for good numbers which you must have. Also, the more knowledgeable you are with the running the project the better. They want to know you are competent.

It can be, but typically not. Usually they will supply the money and go to closings since the property is held in their name. You will need an agreement with your JV partner. Mutual trust is imperative.

Yes. I have no charges for my services. I get a lot of deals with my subs which is passed along into the project. My money is made splitting the profits.

Yes, however most appraisers will not look at cosmetic updates like someone that has updated major systems too. If it is cosmetically updated, it should appraise somewhere between a home with no updates and a home totally renovated.

A lot of factors come into play. The size and specs of the LVL, the area you live, etc. Typically, we pay $600 to $1,200 for the beam itself, depending on size. Then another $1,000 to $2,000 for installation on average. This can vary greatly also due to scope of work. Check with your local contractor for pricing in your area.

Again, this will vary on area, but we usually pay between $400 and $500. Sometimes your lumber yard will be able to spec them out also. Check with them.

Always. I usually have 5% to 10% built in for contingencies or a “fudge” factor. There are always things coming up that you might have missed or did not know about. Hopefully, your contingency will cover those unforeseen costs.

Yes, but I usually tell new investors to steer clear in the beginning. I personally like structural issues since many people avoid them. If you do decide to go ahead with a structural problem project, always get an expert to look at and get a firm repair cost before you purchase!

Typically, not. Most lenders will not lend or only lend “subject to” repairs. This is one of the reasons I like them. It eliminates any buyers that require financing to purchase. In other words, they will need a cash buyer.

We buy most of our supplies from Lowe’s. The big box stores are convenient; however, you may pay more for certain items. We buy a lot of hardware online, flooring products from Floor & Décor and most of our lumber from a local lumber yard. If you have the time to shop around you can save money.

At the present time we use mostly brushed nickel, but the last home we did in the $450,000 to $500,000 range used the brushed gold in the kitchen which has become popular here.