All Forum Posts by: Allan Rosso

@Tasha Davis,

I have only been investing for about a year, so I have never leveraged my equity that way, although it is an option people use. I could cash out refinance the BRRRR property I mentioned earlier, but I wouldn't get enough for a down payment (which I try to avoid down payments altogether by purchasing below 75% market value). Again, remember the bank won't loan the full value of the property, so the only equity you could pull out, is whatever the number is between the amount you owe and whatever percentage LTV the bank is willing to finance.

@Tasha Davis,

The key phrase to this is Other People's Money (OPM). There are so many different ways to do this, you have to find your particular niche. For me, I found a local bank that offered me an interest only loan that finances the purchase AND the repair. Banks usually finance 75%-85% Loan to Value (LTV) on investment properties. The local bank I used, did 90% on my first BRRRR deal. If you are able to find properties below that threshold, the equity in the house covers the "down payment", so you don't really come out of pocket. I am currently working on a 5 property portfolio, for which the bank is covering 85% LTV. As long as I can negotiate them low enough to where the purchase (including closing costs and anything other costs incurred), are below this 85%, I can finance the whole deal with no money out of pocket.

I hope this helps! Let me know if you have any questions.

@Kevin Omalley,

Well this course is definitely a good one. Just keep in mind that wholesaling takes a lot of hard work and dedication, so make sure you practice everything you learn from @Cody Sperber , as he not only shows you how things work, but he gets into the little things. For example, as far as asking a property owner for a glass of water when entering their home to negotiate a deal (which I actually did just this past Saturday!), in order to make them see you as a friend/guest, rather than this investor they may have been prepared to be defensive towards. I've never wholesaled a property, but I constantly refer back to this course for refreshers, during my investing endeavors. Feel free to reach out if you need anything! 

@Kevin Omalley this is a very thorough wholesaling course. It's full of awesome information, but it totally depends on what you're looking for. What kind of investing are you interested in doing?

@Daniel Helland I downloaded the app and messed around with it, but unfortunately there wasn't any available here in my area. I'm definitely keeping the app for the future though. Thank you!

@James C. @Alina Trigub, we did exactly that, and the owner invited us to his home. It works out perfect for us, as I feel he'll be the most comfortable there!

Thanks again!

@Shane Sams I don't think it's considered lowballing if that's the amount you came up with after running your numbers. For example, lets say you use the 70% rule to come up with a max offer on a $100K (ARV) property that needs $30K in repairs. You take the 70%, then subtract the amount for repairs, and you come up with a number of $40K max offer. Of course, you never want to start off at your max offer, so you "lowball" them at $30K. Depending on their situation, they may simply accept: Example: the home has been vacant for a while, belonged to their recently deceased parent and was willed to them, so $30k in their pocket for doing nothing seems pretty good to them. If they have a different situation and may get offended for you "lowballing" them, you may go back and forth (always stick to your max offer though). In these situations, its important to be knowledgeable and explain exactly why you're offering what you are: have a list of needed repairs and their prices, CMA's showing how you came up with your ARV, etc etc. If they have half a brain, they'll understand you're not really lowballing them, and then will make an educated decision whether or not to accept.

My partner and I are going into negotiations on a 5 property portfolio this coming weekend, and to prepare for it, we have a detailed "report" with lists of repairs needed, pictures, prices, etc. for each property, that will aid us in justifying our offers on them.

Hope this helps some!

@James C. @Alina TrigubALL, we have viewed all the properties, and are ready to go into negotiations! We would like to set up a meeting with the sellers this weekend, but aren't sure where would be a good place. We want to have some suggestion ready before calling, and are open to meeting at either my partner's or my house, but would like to leave that as a last resort. Starbucks doesn't seem like a great idea either. Is there any place you may recommend?

@China Sistrunk I honestly don't have enough experience to know for sure if it works the same way everywhere, but as far as here in my county, there's a requirement of having the preforeclosures in the newspaper for 4 weeks prior to the actual foreclosure. Foreclosure auctions here, happen the first Tuesday of every month. I usually pick up the newspaper the Friday/Saturday of that week, as it will have the fresh properties that will be foreclosed the coming month.

@Alina Trigub after meeting with a local banker I currently have an interest only loan through, he agreed to finance the whole deal: 1 year interest only loan @ 5.5% for the flip, and a 5 year term with balloon payment at the end for the rentals. We are going to meet with another banker about putting a mortgage on the rentals right off the bat, but at least we know that if worse comes to worse, we can finance the whole thing through the other bank. 

@James C., we've met with our Real Estate agent and started viewing the properties. He definitely agreed with what you said about separating the contracts, as they will be individual offers for each property, and he confirmed having a clause that makes the contract assignable. He also offered the option of giving him an "Advisor's Fee", rather than a 3% commission per property, if we were to want to handle the purchase ourselves straight with the title company/closing agent, so as to keep our costs down.

We've been working hard on this deal for the last two days, meeting with bankers, our real estate agent, viewing properties, meeting with the management company we could potentially inherit, following up with the owner, and we have a few more meetings lined up in the next couple of days. It looks like everything is falling into place, as long as the numbers look good after viewing all the properties! 

 .