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Question: I have a property I did a fix and flip on that I am finishing up a renovation on. The prices have declined in this Bay Area market. Basically, if I sell I will probably lose about $150k. Any suggestions on how you might evaluate the loan request? I would rather keep and hold even if I break even as opposed to taking $150k loss today. How would you approach this?
Look forward to hearing your thoughts.
Timestamps
[00:55] Experienced and non-experienced house flippers in the Bay Area are losing on every product
[01:15] Beau’s suggestion to Lena’s question
[01:26] Look into a DSCR loan, conventional loan or go into a stabilized bridge?
[01:39] After owning the property for six months, use the new appraised value on a stabilized bridge
[01:49] 24-month term interest-only payments
[02:18] Why lose the money? Keep the property!
[02:49] When keeping the property as a rental, look at doing a cost segregation
[03:31] The cheapest buy-down option
[03:50] Be creative on getting a higher rent to avoid taking a loss and make it profitable