All Forum Posts by: Alan F.

My first RE project will be a fix and flip, just to start gaining capital before getting into buy and hold properties. My question to start is, do you find it best to use hard money to fund the purchase and renovations, or using renovation loans i.e. FHA 203 (k), Fannie Mae Homestyle loans?

Thank you for any advice!

Congrats on your 1st flip, regardless of your strategies learning value add/forced equity is valuable in real estate. Lots of great info in the replies.

Don't forget your builders risk insurance.

I glanced at Maryland contractors license board (dol?) and it looks like they outline contractors law, learn it as a way to mitigate risk when dealing with contractors. Best of luck!

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Columbia, Maryland

Quote from @Meghan Rusen:

Hi all! Looking for some advice...

My husband and I have been in our current home for almost 4 years. We are moving out of state in January (from Louisiana to North Carolina) and will need to sell our home. We have friends that have expressed interest in buying it as an investment property and have discussed a sale price with them. Due to current interest rates, they're hesitant to take out a mortgage on it so I mentioned the possibility of doing subject-to and they liked the idea but asked us for some time to think about how they would like to proceed. We refinanced in 2021 so our interest rate is 2.875% and would have $85-90,000 in equity in the home. We definitely need the cash from the equity for our move out of state to put into our next primary residence and they would be able to give us a payment for the equity up front and then take over the existing mortgage.

Essentially I am curious if anyone with experience with subject-to deals would offer some guidance on the best way to proceed if we go this route. What would be the best way to structure a deal? I'm worried about the due-on-sale clause. I've heard that mortgage companies rarely enforce this as long as the mortgage is being paid but I'm concerned that it still might happen. Is this too risky? Any advice would be appreciated!

Thank you!

There are a bunch threads/posts currently on BP about sub to. I'd read them as they outline alot of pros and cons.

Maybe selling on a lease option?

IDK if its better or not because I'm still learning too.

I'm hoping the more experienced will chime on. Very best of luck.

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Quote from @Dmitriy Fomichenko:

Hello @Alan F. , it’s good to see you here on BP!

Good luck on everything!
Thanks so much! Really appreciate the welcome. Thanks for sharing so much information with your posts! You guys help so much.

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Quote from @Mackaylee Beach:

Welcome back!

What projects are you currently working on?

Hi Mackaylee, thanks for the reply!
at this moment making offers on flips & running my 1 man company.
I'm also exploring different opportunities & even considering moving out of California.
its so great to be engaging with fellow entrepreneurs/investors
very best
Alan

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Quote from @Kerry Noble Jr:

welcome back!

Hi Kerry, thanks so much. Your posts/comments have been so helpful. Hope your doing well! I'm looking forward to helping others as so many have helped me with knowledge

Very best

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Quote from @Steve Vaughan:

Welcome back @Alan F. !

Yeah, a lot of us dinosaurs don't engage as much. Not being able to see what our people are posting about anymore has a lot to do with it.

Glad to have you👍

Thanks Steve, yeah alot has changed. I'm really clunky using browsing on mobile lol. Glad you, Jay, Jame(s) & others are still posting. You guys have helped more than you think. Lurking is learning. Very best

2 Votes

Hi everyone,

I was on the forum for a couple of years and learned alot. I used the app (easier on mobile, couldn'tfind my old account) There's so much great info that the regulars share.

I noticed some folks don't seem to be around much.

Thanks everyone & BP

2 Votes

All Forum Posts by: Alan F.

Alan F. has started 14 posts and replied 947 times.

Post: Flips for a beginner

Post: Selling primary home subject-to

Post: Back on the forum

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Post: Back on the forum