All Forum Posts by: Arthur Garcia

. . . just to chime in, depending on the lender you are using, you CAN refi as soon as the rehab has been completed.

The problem is that most lenders have fannie mae overlays that require seasoning. That being said, not all lenders have these overlays. I have found two lenders who do not require any seasoning on the property before you refi at ARV.

My advice would be to check with lenders in your market before deciding on how to proceed. Implementing the strategy you laid out is a great way to grow your business quickly. The trick is finding the right lender and then being able to qualify for the loans. The more fannie mae loans you get the harder it is to get funding, especially if you have more than 4 loans.

I hope that helps!

AG

The Norris group just had a radio show talking about this very issue.

They have it available as a free podcast, if you want to hear what was discussed:

http://www.thenorrisgroup.com/blog/category/radio/

I admit, I didn't quite understand the whole concept, but it sounds like the wheels are already in motion. I will be interested to see what will come of this. If successful, I can see other areas following suit.

Shari Posey - I use either private money or HELOCs. Both avenues do not charge me points, only interest. My private lender is not from the Real Estate world, so they have no expectations of points or fees, they are just happy to collect interest payments.

I typically structure the deal so that I can borrow interest only for 2 years (no prepayment penalty after 1 year) with the option to extend out for another 5 years.

The HELOCs are much simpler. I pull a line of credit, buy a house in cash and refi it with a conventional loan in my name or with a credit partner.

I hope that helps.

AG

Shari Posey - You may want to consider using private money combined with your down payment to acquire a property in cash, then refi into a conventional loan. That is what I do and it works well for me.

Shari Posey - I like buying cheap SFR between 50-80K with long-term financing at today's market rates.

If you are interested in the La Quinta market, my suggestion would be to NOT look in the MLS. The word is out, everyone wants in on rentals. Your best bet is to farm a few zip codes in your target market and find a distressed seller and handle the short sale internally. Even if you don't end up buying the property, you got a listing.

I think the real gold in manufactured housing is carrying notes or assuming loans and reselling it with owner financing.

As far as 55+ communities are concerned, I think it all comes down to your business model. A niche works both ways. You have less competition, but you also have less margin of error.

As far as waiting is concerned, I think you need to consider the other component of today's market - interest rates. Locking in a ~5% mortgage for 30 years is a great way to shelter your wealth and grow your capital. IMO, the purchase price is one half of the deal, the other half is the terms.

Try to keep all credit lines below 30% of available credit.

I use BP in my business as a way to network with other local investors. Since I started "actively" using BP (8 months ago), I've met 6 investor's from my market.

One of these investors Michael Zuber has been key in helping me develop my business model and providing mentorship.

If all goes well, I should close two deals with one of my BP contacts before the end of the year.

Combined, I can say through the advice/ mentorship I've received from the site, I've avoided losing 20-30K (walked away from a bad deal) and I have been able to add $1000 to monthly cash flow in just the past year.

My advice to anyone reading this would be, be active and reach out to other folks in your market.

AG

Sarah Jones - I would be careful on this deal. I think you can make a killing with these types of deals, however, you really have to know what you are trying to do. $1500 is a very reasonable payment and 20K over 15 years is very doable.

The question is, what is your exit/cash flow strategy - Lease/option, retailing the property, holding for cash flow?

The FIST thing I would do is check with the person/office running the park. You'll need to find out the stipulations for reselling the property and or renting it out. Often times, parks won't let you rent the property so you'll have to either sell SUB2 or do a cash flow wrap around the existing financing. This can be tricky, especially if you don't have experience in this area.

I hope that helps!

AG

Anyone else want to share?

Bumping thread...

I've been meaning to update this thread for a while, so I'll do it now. I finished to the last audio audio download about 2 weeks ago and I wanted to say the files were well worth the money I spent (for anyone still sitting on the fence).

The thing I like about having access to the audio is that I have been able to re-listen to my favorite sessions several times. Listening to them more than once has helped me better understand a few of the concepts and alter my RE business model.

For example, after referring back to Aaron Mazzrillo and Ryan Webber's session on wholesaling, I was able to better navigate my conversation with a seller earlier this week. The candid advice both Aaron and Ryan offered helped me determine the person on the phone was not truly motivated and I that I need to move on to my next lead.

This may not seem like a big deal, but for me it was huge! I realized that I have been wasting my time with sellers who weren't truly motivated (sometimes getting stuck on the phone for an hour!). Just knowing the information from their has assisted me in filtering my prospects and as a result has saved me hours.

I just wanted to pass this info along to the BP community.

Has anyone else found the audio helpful? If so, what key concepts/ideas stuck out to you?