Published: 2024-07-24
Status:
Analyzed
Predictions from this Video
Incorrect: 1
Prediction
Topic
Status
The chance of buying a profitable flip on the MLS is very slim.
"there chance of you being able to buy a property at a good price where you can actually make a profit after you put in the money to renovate and sell the property it's going to be very very slim"
Correct
Private money lenders are unlikely to provide over $1 million at once, making them unsuitable for multiple large deals simultaneously.
"you probably won't have someone who has over a million dollar to lend you at one time so if you're trying to do two or three deals at the same time and each of your deals are $500,000 to a million you probably can't rely on just one private money lender"
Correct
A private money loan gone wrong will result in high lender involvement and significant stress for the borrower, especially from friends/family.
"because this isn't individual's money they may be more involved with the deal something goes wrong you might get a lot of calls and voice messages and it can be very stressful if you're borrowing money from a friend or family member"
Correct
A reliable hard money lender offers an unlimited funding source for real estate deals.
"if you can find a good hard money lender that can close on deals quickly and reliably then you basically have an unlimited source of funds for your deals"
Incorrect
Hard money loans will be standardized, require 10-20% down, and generally expect repayment within one year (or incur significant fees).
"their loans are probably going to be more standardized and they won't be able to give you these 100% loans with 0% interest and only asking for a percentage of the backside so they probably want you to have a certain credit score you're going to be expected to put down 10 or 20% of the down payment so you have your own skin in the game and they're going to ask for the money back in one year unless you want to pay significant fees"
Correct
Wealthy individuals will typically use hard money loans for flips to avoid tying up all their cash in one deal.
"even people who have a lot of money probably don't want to tie up all their money into one deal so they just default using hard money loans anyway"
Correct
A poor contractor can cause months of delays, higher holding costs, and force a sale below desired price due to missing market seasons.
"You may find a contractor who promises you to the world... and then drag you along for months making you pay way more money in holding costs and delaying your schedule and possibly even having you sell the property below what you were looking for because now the property is out of season"
Correct
Most investors will keep good contractors secret to prevent them from being double-booked and impacting their own projects.
"most Real Estate Investors probably won't share their contact information with you because they want to keep the good contractors close to their chest because in the worst case scenario you may have a job and taking over their contractor when they need them for their projects and because now this contractor is double booked they can't get their own deals done"
Correct
Contractors referred by real estate agents will likely charge higher prices because they typically work with residential clients.
"however they're used to working with residential customers so the prices may be higher than working with investors"
Correct
Yelp contractors with exceptionally good reviews will likely be very expensive.
"if they're like really really good they're probably going to be very very expensive"
Correct
Improperly scheduled inspections will necessitate rework, incurring additional time and money costs.
"if you don't schedule these inspections properly then you might have to redo the work which can cost you time and money"
Correct
An agent who sourced a pocket listing will be more willing to work repeatedly with a flipper if they also handle the sale, securing multiple commissions.
"this will they be more happy to work with you over and over again because they're basically getting three commissions just from working with you"
Correct
A property not sold within the first two weeks of listing will be seen as a "dead listing," causing buyers to question its issues.
"try to get an offer or accept something within the first 2 weeks otherwise your proper be considered a dead listing and people are going to start wondering what's wrong with your property Why didn't it sell in 2 weeks"
Correct
Buyers who have their offer accepted too easily will experience remorse and believe they overpaid.
"if buyer feels like they got an offer too easy they put in a number and accept it right away they're going to start thinking that maybe they overpay for the property"
Correct
Fixer-upper listings on the MLS with low teaser prices will attract bidding wars, ultimately eliminating potential profit for flippers.
"even if you see a fixer upper deal online for a very low price just know that it's usually a teaser price and the property won't actually sell for that number someone is going to bid number up to the point where there's going to be no profit left over"
Correct
Countering an offer makes buyers feel they earned the property, potentially causing them to overbid.
"they'll think that they have to work for the property more and they will over bid themselves"
Correct
Failing to counter an offer can result in buyer remorse, leading them to seek price reductions later in the process.
"if you don't do this and your buyers do get buyers remorse they may find some way down the line to try to get the price reduced"
Correct
Accepting a buyer's initial offer too easily may lead to buyer remorse, potentially causing the buyer to later seek a price reduction.
"if buyer feels like they got an offer too easy they put in a number and accept it right away they're going to start thinking that maybe they overpay for the property... if you don't do this and your buyers do get buyers remorse they may find some way down the line to try to get the price reduced"
Correct