All Forum Posts by: Avi Garg

@Brian Eastman Great that's what I was looking for. Thanks Brian

Thinking about partnering up with a friend and use the funds from my solo 401k for a buy and hold deal in a new LLC. How would the financing work since the funds are coming from solo 401k? I understand the financing in case of buying within the solo 401k only but unsure when a partner and LLC is involved. Would this qualify as commercial financing?

@Account Closed Sent a pm but never heard back. You can mail me at avi.invests at gmail.com

Do you have a goto place to buy appliances in St Louis? I am at the tail end of a 4 unit rehab and would be needing appliances to finish it off soon. 

I am starting my targeted mailing campaign in the Bay Area and wanted to see if anyone would be willing to share the contract they use to get the property in contract? I may not wholesale the deal but would like to have the option. Any help is appreciated.

 Mike ... One of the biggest fallacy I keep hearing is that the properties will still cash flow after the market "corrects". When the correction happens people lose jobs and unable to pay rent/mortgage. Your properties will no longer cash flow and may force you lose your property if you don't have ample reserves. 

@Diane G. Your doomsday clock has been on high alert since the last few months you have been posting (or atleast since I noticed). You pull up statistics off thin air. The prices have been increasing in peninsula and no house goes for list price, it always goes 50-130k higher. How do I know? I live in the peninsula and monitor it on and off. The condo I sold last year is now selling for 100k higher (in the same complex they sold for 80-90k higher). 

So if you would have bought something last year instead of waiting for the impending doom, you would have been 100k richer. 

@Sam Erickson I am interested. Please send more details to [email protected]

@Lena Wang

1. Non recourse loan is a type of loan secured by the property itself. If the borrower defaults, then the bank cannot go after the borrower but only seize the collateral i.e. the property.

2. A W2 will be the best option to get a low interest rate conventional loan. However, if you do not have a W2, then you will have to take a higher interest private loan to cash out.

I have also heard that lenders overlook W2 if the deal is good but haven't found one yet and it could be attributed to the fact that I was just getting started. Now I see you have a few rental properties so the banks will look at you differently in terms of net worth, experience etc

@Lena Wang Here is what I found after not being on W2 for a while. 

1. For commercial recourse loans, banks do look at the W2 (unless you have prior relationship with the bank). For the non-recourse loan, the banks do look for net worth, experience etc.

2. After BRRRR, you can get a non-recourse loan from a portfolio lender like B2R (not affiliated to them). They do not look at the W2 but do look at the current rents of the property, so make sure the property is fully rented before you start the process with them. The interest rate is higher as well ~7-8%.

3. See #1.

4. Depending on the lenders, they may or may not look at your W2. I gave one example of portfolio lender. You can search for more here on BP.

Talk to a local bank and see what they can do. I spoke to a lender in a different state, told him my background, RE plans and he mentioned he can help me and we will be doing business shortly. 

Hope this helps. If you find anything that is contrary to what I said, do let me know.