Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Corey Demuth:
Originally posted by J Scott:
The rest I buy using financing; the banks I work with will finance the purchase and the rehab costs for up to 12 months interest-only at 6.5%, so that's a good option for my typical flips.
How the hell do you get that deal?
Great credit, strong business plan, proven track record and a personal guarantee against my assets...
There are plenty of small banks out there that will happily work with investors and provide great terms...you just need to find them and prove to them that you're a good investment...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Corey Demuth:
Are you buying them with cash? can it be done with cash and hard money?
I buy some with cash, and some with financing from local banks.
The properties I buy with cash are those I expect to hold for a short period of time (or have thinner margines), and would prefer to save the costs associated with originating a loan.
I will also buy with cash anything that I plan to owner finance for more than a year.
The rest I buy using financing; the banks I work with will finance the purchase and the rehab costs for up to 12 months interest-only at 6.5%, so that's a good option for my typical flips.
Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
17y
Originally posted by J Scott:
The rest I buy using financing; the banks I work with will finance the purchase and the rehab costs for up to 12 months interest-only at 6.5%, so that's a good option for my typical flips.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Corey Demuth:
Originally posted by J Scott:
The rest I buy using financing; the banks I work with will finance the purchase and the rehab costs for up to 12 months interest-only at 6.5%, so that's a good option for my typical flips.
How the hell do you get that deal?
Great credit, strong business plan, proven track record and a personal guarantee against my assets...
There are plenty of small banks out there that will happily work with investors and provide great terms...you just need to find them and prove to them that you're a good investment...
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
17y
I work very similarly to J. I buy cash, only MLS and only REO. If you take that rout, you really have to be familiar with the geographical areas you are buying in. Wells Fargo offers 1st + rehab loans but they have stringent rules with regard to contractors you hire (Which makes it quite expensive) and the whole process is lengthy and tedious.
By the way, J. Scott. Who is you banker? I would love to have a deal like that.... :wink:
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Eddie Ziv:
Most of my business is done in Alabama. Do they work in Alabama? Most regional bank work in several states if they are in the same region.
I'll ask my loan guy. Because they inspect all the properties before and during rehab, I'm not sure they can handle stuff outside of easy driving distance, but I'll certainly ask.
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
17y
Mine have all been MLS, either REO or HUD. I used cash on one and construction loans on the other. Local small bank and I get a construction loan. I have to put 20% down of purchase price but then they will give me 80% of ARV for 9mo currently at 7% with one point. If I decide to rent the house I refinance otherwise sell and pay off the construction loan.
Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
17y
What happens if your credit isn't amazing so at the end of the hard money loan term, you have difficulty getting a refinance but you haven't managed to sell? Just want to know what all the potential pitfalls are!
Property Manager · Atlanta, GA · Member since 2009 · 16 posts · 1 vote
17y
We also use the MLS - REO and HUD. Recently we picked up a couple from the courthouse steps at 40% of TDM (Today's Market Value). Over the past year or so the courthouse steps wasn't the best place to pick up property but, maybe this is a sign of a new trend. We try to use all cash or Hardmoney.
Please keep us in mind for your Atlanta area property management.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
Originally posted by Corey Demuth:
What happens if your credit isn't amazing so at the end of the hard money loan term, you have difficulty getting a refinance but you haven't managed to sell? Just want to know what all the potential pitfalls are!
You would first try to negotiate an extension with the lender. You might get a month or two, but might have to pay a point or two for the extension in addition to the interest. If that doesn't work, or when you run out of extensions, you do a deed in lieu of foreclosure and hand over the property to the lender.
Real Estate Investor · Springfield, MA · Member since 2009 · 142 posts · 103 votes
17y
I purchase all our properties directly from the sellers. I buy alot of short sales, fire damaged properties, condenmed homes and probate deals.
I have never been able to get a good deal off the MLS.. all the REO's in the neighborhoods I like to buy in sell very quickly with multiple offers. Too much competition.
When I buy from the individual sellers there is usually no competition, I'm the only game in town, and I can make some fantastic deals :D
Real Estate Investor · Ewa Beach, HI · Member since 2009 · 1 post · 0 votes
17y
Originally posted by J Scott:
Originally posted by Corey Demuth:
Originally posted by J Scott:
The rest I buy using financing; the banks I work with will finance the purchase and the rehab costs for up to 12 months interest-only at 6.5%, so that's a good option for my typical flips.
How the hell do you get that deal?
Great credit, strong business plan, proven track record and a personal guarantee against my assets...
There are plenty of small banks out there that will happily work with investors and provide great terms...you just need to find them and prove to them that you're a good investment...
Jason,
Is it possible to get a copy of one your business plans for real estate investing or do you have any tips on writing a succesful business plan?
Real Estate Investor · Young America, MN · Member since 2008 · 18 posts · 1 vote
17y
Originally posted by Matt Kearney:
I purchase all our properties directly from the sellers. I buy alot of short sales, fire damaged properties, condenmed homes and probate deals.
I have never been able to get a good deal off the MLS.. all the REO's in the neighborhoods I like to buy in sell very quickly with multiple offers. Too much competition.
When I buy from the individual sellers there is usually no competition, I'm the only game in town, and I can make some fantastic deals :D
The question I have for this is how do you find the sellers? If they are not on the MLS? Do you advertise and have them come to you. Do you have such a large network of people that you know when there is a distressed house in the area?
Real Estate Investor · Tampa, FL · Member since 2008 · 456 posts · 42 votes
17y
Originally posted by Matt Kearney:
I purchase all our properties directly from the sellers. I buy alot of short sales, fire damaged properties, condenmed homes and probate deals.
I have never been able to get a good deal off the MLS.. all the REO's in the neighborhoods I like to buy in sell very quickly with multiple offers. Too much competition.
When I buy from the individual sellers there is usually no competition, I'm the only game in town, and I can make some fantastic deals :D
I have the same luck with REOs here. Short sales, probates, and absentee owners as well as people trying to bail out in a hurry are what I look for. And even us credit starved individuals can get a 60% HML. Added to a seller carry back note, this can make sweet deal.
Real Estate Investor · Dallas, TX · Member since 2009 · 63 posts · 19 votes
17y
I do basically what Karen Parker and Matt Kearny do. I buy directly for distressed home owners. I can't even count the deals I've gotten right off of Bandit signs on the street corners that say "we buy houses" or "sell your home in 48 hours."
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
I do most of my business from the MLS too... However, just call all of the WE BUY HOUSES signs and ask if they have any super hot deals..LOL.. You will have to go through a lot of crap and a lot of wholesalers will market each others properties, so you may see the same house 8 time at 8 different prices, but it can pay off with a good wholesaler. Networking here is also a grea way to get deals and sell them. Good luck