All Forum Posts by: Andrew Postell

@Martha Cyrus is this property your primary home?  How much equity do you have in this property?

@Robert Fry any reason why you just couldn't buy it from them normally?  Can you qualify for a traditional loan?  I mean, "best" might be a little open to interpretation here but it might be "best" for them for you to just buy it from them.  It might be "best" for you to buy it from them using a gift of equity.  Lot's of ways to do this and would certainly recommend speaking with a loan officer on it.  This is a pretty simple transaction for most good loan officers.

@Mohammed Milord Is it possible?  Yes, it is possible.  Is it realistic?  No, it's not realistic to expect to have that.  Purchasing a property with "next to nothing" out of pocket means you would need to find an exceptional deal.  Now, is it possible to go self-source your own real estate deals?  Yes, that's possible.  And it doing so, could you find "an exceptional deal".  Again, yes, it is possible going this route.  And while you are searching to find that "exceptional deal" you will come across many of these other deals that are still good but require some money out of pocket.  And because of this, this is why so many people start with wholesaling.  So, if the idea of hunting for your own deals is attractive to you how about just hunting for deals in general, making some money on those by wholesaling them, and then every once in a while you find one that you can keep.

There are other strategies too but I thought that one might be a little more inline with what you were thinking.  Let me know if you have any other questions here. 

Thanks!

@Account Closed what "Business credit card service" is teaching you to go into credit card debt for a downpayment?  I'd like to know what business is teaching that out there.

The main thing I want to point out here is that none of us use 25% DP + closing + reserves to execute on a property.  I mean, even if someone did have $100,000 just laying around...how many properties could the buy with that math?  One?  

When I use hard money, I'm certainly not coming out of pocket that much.  I'm hoping that saying this will lead to maybe some other questions on this...so ask away.  Certainly here to help.

@Rahul Gupta the absolute best way to use just about ANY vendor is to get a recommendation from another investor in your market that has already used that person/company.  Usually, the best "whatever" comes from local people in our market.  It's not foolproof...and nothing is...but having another real estate investor recommend someone that they have already used usually puts us in a good starting place. This is for plumbers, electricians, title companies, anybody.  Go local.  I can't tell what market you are in but try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.

@Scott Vaeth you can work with whomever you want to work with of course but it sounds like your lender doesn't have the right products available for you on this property.  If you are planning on occupying the home as your primary home there are specific renovation loans designed for this purpose where you don't bring the renovation money out of your pocket.  Not every lender offers those loans though.  I mean, not every lender offers every loan out there any way so it's not like he's a bad business owner for not having this loan type.  And maybe the loan officer just doesn't know about it type of thing but there are loans specifically designed to help you accomplish what you are trying to do here.

Hope all of that makes sense.

@Shannon Young when you state "service"...do you mean "write"?  Or are you looking for a mortgage servicing company specifically?

@Erick Castro you showed us the 30 year fixed rate terms...but what are the terms on the other loan product?

@James Bapst who told you that only a Home Equity Loan is possible?  Was it a lender that reviewed your financial and numbers?  If so, they kind of have a leg up on us since they already saw everything and this is what they suggested.

Now, depending on the cost of the guest house and your income a personal loan might be possible.  That would be more of a 5 year term...and at a higher interest rate. Usually, if we are securing real estate to a loan those have lower rates and better terms than most other loan products.  You can ask the builder if they have financing available.  You can also ask some other investors in your area if there are any good lenders that are local to your area that might have some options.  Mom is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. 

Just some ideas.

@Kristine O. yeah, what the posts are saying above is pretty accurate. When we self-source our deals we use seller-financing as a tool to help us acquire more properties. Is it possible to find some seller-financed deals on the MLS? I mean, it's possible...but that's not normal. And an agent wouldn't be able to tell you how to structure it or what legal paperwork you need. You live in LA...there's tons of real estate investor groups that meet regularly in your area. Have you ever been to any of those?