All Forum Posts by: Account Closed

I have been listening to some of the podcasts, and I've stumbled upon this financing option  for B&H through private lenders. I want to know if I understand this correctly, so please chime in if either I'm right or if I'm missing something.

-Find a house worth 100k

-Buy it at a good deal for 65k (REO, pre-foreclosure)

-Private lender funds me the 65k plus another 15k for rehab at 11% interest

-Hold the property for a rental cash flow

-pay the lender interest only for 3 years (or how ever long the term is for) at $244

-after "seasoning" the property and waiting the year, cash out refinance the property with a fixed 30yr at 80% of the ARV (which is now 140k)

-use the 112k from the cash out and pay back the lender with his full interest (and points?)

-pocket the estimated 23k and repeat with the next deal

Am I missing something or could this be correct? BTW I know its almost impossible to find a lender that will provide 100% plus rehab costs but I've heard that it could happen.

Any feedback would be appreciated.

I have been listening to some of the podcasts, and I've stumbled upon this financing option through private lenders. I want to know if I understand this correct so please chime in if either I'm correct or if I'm missing something.

-Find a house worth 120k

-Buy it at a good deal for 65k

-Private lender funds me the 65k plus another 15k for rehab at 11%  interest 

-Hold the property for a rental cash flow 

-pay the lender interest only for 3 years (or how ever long the term is for) at $244

-after "seasoning" the property and waiting the year, cash out refinance the property with a fixed 30yr at 80% of the ARV (which is now 140k)

-use the 112k from the cash out and pay back the lender with his full interest (and points?)

-pocket the estimated 23k and repeat with the next deal

Am I missing something or could this be correct? BTW I know its almost impossible to find a lender that will provide 100% plus rehab costs but I've heard that it could happen.

Any feedback would be appreciated

Signed up, can't wait to meet some people!

Originally posted by @Libby Tucker:

Thanks Anthony!  Yes, it's a very tough nut to crack with little capital - I've been working on it some time.  But I'm going to crack it!  

 Look outside of NYC, that's your best bet. Jersey City, Newark, and Philly are your go to markets.

Can someone put this together PLEASE!

Hey Libby,

Welcome to BP, I'm happy to see more people from Brooklyn/NYC posting on this site. This area is a hard nut to crack, especially without much capital. I know the area well and am glad to offer any advice or partnership if you need! Attend some REI meetings you'll also get good local help there. Message me if you have any questions!

Best of luck, 

Anthony

Aundre Oldacre Welcome to BP! I'm also a newbie from Brooklyn. Lots of great info on here to help you get started. Send me a message if you're looking for any help! -Anthony

@Mark Brogan I joined one and have a meeting setup for next thursday. With this being said, I am coming to jersey for the weekend and I'm looking to get a meeting set up for Saturday.

Hello All, I'm looking for investors/mentors/partners to join/help me on my first purchase. I'm looking anywhere near Metro NY (Long Island, NJ, Philadelphia). I want to learn and gain knowledge out of this experience; but I do have some capital to offer. If anyone is interested please feel free to message me or email me at [email protected]. Thank you in advance for the consideration!

Originally posted by @Charles Worth:

@Account Closed

What is your situation? Are you working full-time? Can you manage the properties?

I ask because while low income areas might seem cheaper they come with their own issues that might not make them cheaper or workable after you buy them.  If you don't have money after you buy what will you do when the tenant decides they would rather buy gifts in December than pay rent? What about when something breaks as they tend to be hard on the property? My point is not that these can't be managed or that this is every area my point is if you don't have the time to manage it or the money for reserves it can seem cheap but not be cheap later. 

If you can get a loan a property in a decent area could be workable as the downpayment won't be that much. 

Also, you can do a number of things without income such as wholesaling or working with others. You can also read the @Brandon Turner book about investing with no money down from this site. 

Lastly, I am in Brooklyn too and am happy to talk with you. 

 I do work full time, about 65 hours a week. It would be difficult to manage anything more than an hour away. But you and I both know Brooklyn prices are crazy high, where should I start?