All Forum Posts by: Andrew Holmes

@Daniel French

Not sure about PA but in IL. That would be bad news for the agent. Her own deal and she is agent and directly working with a buyer all sorts of conflicts of interest issues from her end. The licensing rules now a days are very strict can even when there is nothing wrong it can be sticky. If I was her I would say work with your attorney for your representation and closing then she is in the clear. 

From your end as long as you know what you are doing. You are okay with the price. You know what you are getting. So if are a seasoned investor no big deal. If you are new or have only done a few transactions why not get a couple of CMA's from a couple of agents. Get your attorney to over look the deal. Few hundred dollars well spent.

@Account Closed

We have done about 150+ of these in the last 6 years. You are on the right track. 

Just make sure you give you Portfolio lender the right numbers of purchase, rehab, carrying costs etc. 

They say 80% I have only had 2 deals where they would go 80% and that was a very special exception. Typically is 75% of ARV that is the max. Also the ARV based on a flip is not the same as the appraisal that will come back on a lot of these refi. It's very common to get low appraisals for refi's. You can sell the same property all day long as a flip for $ 160,000 and you get a refi appraisal for $ 142,000.

So just plan very conservatively from the beginning. If you end up with more great.  

Reach out to Finance Of America in Charlotte - Lisa Gray. She should be able to help you. 

@Preston Dahl

I think we are all a product of our experiences. We all will have an opinion based on our our experiences. 

If you love doing rehab then go ahead and do the rehabs yourself. I think over time it become a business decision. No harm in doing the work yourself but it you want to grow you will have to hire other people and manage them. Then eventually mange the managers. 

If the goal is growth at a rapid pace then you have to give aways as much of the work as possible. Knowing how much time it takes, what to pay and how to get work done from other people is more important than doing it yourself. Just my opinion. 

Doesn't hurt to be handy but we are not in the rehabbing business we are in the investing business. Rehabbing is a part of our business not THE business. 

I don't know if there a right or wrong it more based on your goals and your abilities. 

@Angie Taggart

@Joseph Gozlan

Angie: A bank is not going to call a note due because you moved it to a LLC as long as the payments are being made.

Depending on the amount of properties you intend to buy you can do the first 7 or 8 in your name and then the rest will have to go commercial. 

They say 10 residential refi as per guideline but they make your life a living hell in terms of qualification. 

The key is speed of the transaction so doing 5 or 6 residential refi's and then move into commercial refi's. 

@Alex Stariha

Credit line has it's advantages in some case - You can pay it down when not using the cash. On the other hand it needs to be renewed each year. 

Cash out refi's may make more sense in this case. If you have multiple properties you can move them to a LLC and then get a commercial refi or if you want residential refi then do the refi and then park them in an LLC for long term.

Yes. If they check up about law suits. But a lot of times it gets missed. 

@Maggie Wray

Ms. Maggie: ATL is very spread out. Think off each highway like your fingers on your hand. The palm is the perimeter road around ATL.

Now pull out a map and draw a radius of 30 miles around ATL and 50 miles around ATL. 

divide the entire map in 4 section east west and north south. 

Take North East section going out towards Gwenitte county look up and down the highway that cuts through and find towns where   you can hit your numbers and demographics make sense. 

Since you are in the northers part I would try to focus on North East or north west quadrant. 

If you go out too far and see more cows than people then that is too far. 

nice demographic mix, B to b- areas. Stable blue collar to white collar workforce. Low Low crime.

@Jay P.

Well you haver order of possession as of a certain date per the judge but the eviction is not complete until the sheriffs show up and hand your property back. Unless of course the tenant has enough sense to get out before the sheriffs show up

@Will Yee

If you put on your legal hat the answer would be no way. 

On the other hand for something very small will it be an issue probably not. We generally would not allow that. Not saying we have not but 99% of the times my suggestion is no. 

On a couple properties that we bought from auction the folks wanted to stay. We got all the outside work done. Some flooring and paint that we wanted to do the tenant did it himself because that is what he does for a living. In a sue happy society we live in we had him sign a waiver. 

As a general rule no but we made an exception in this case. It worked out okay.