All Forum Posts by: Philip Bourdon

Hi.

I'm doing my research before taking on any Rehab projetcs by going to the Home Depots as well as learning all I can about costs and how things are done. BUT, here is what might seem like a "Mr Obvious" question. Would I be selecting all the items myself? Mainly, style and type of cabinets, rugs, paint, light fixtures (easy for me since I sell those)?

I simply have never thought about it before.

Thanks,

Philip

Thanks for the reponse, Jon. I meant simply selling it to someone who will live in it.

Is there a minimum percentage that you might think lenders (private) would want me to put in?

Of course, the HML are going to charge around 10 points and whopping interest.

I am assuming the more skin I have in, the more attractive it is to an lender.

I will have between 80-90K available and hope to buy houses under 40K here in W PA that have moderate repairs needed. I don't wish to fund it all. My only experience with rehab and hard money was 4 years ago and lets' just say it was a painful learning experience; bad choice of home, bad tenant, etc.

I would "flip" the home to a owner occupied. Are lenders going to want to see a success track record or is it still the deal that enables the loan?

Thanks,

Philip

Hello John>

We have e-mailed a few times back and forth. I have already read (twice) both Lonnie's main books. I have also noticed how you are doing something Lonnie never discussed and that is dealing with much nicer homes, many of which have land.

So, I am going to e-mail you at you Mobile Home Madness address. Just Look for the mail from Bumblebee!

Thanks,

Philip

Thanks, Curt. That is certainly another possibility to add to my choices.

Those figures are on the edge at best. Let's say a HML is conservative (and they are) and puts the ARV at 230K. If they use 70% (some use 65%), then that puts it at $161. "About" 70K ("about" is a dangerous word) puts it at $91K. Without some of your own "skin," the lenders will probably say no (as Jon suggests). Also, anytime you are at those major expenses, a few miscalculations and problems can eliminate most of the profit.

First, to Jon. Thanks for a straight-forward answer. I am planning to talk to Mortgage Brokers so to better grasp what the playing field is out there. Nice Summary.

Rusty...Hmmmm. I did struggle with your initial comment. I can see that your intention was good. However, I was not looking for anything beyond what I was asking for. I am working with someone who will help me with that.

In September I will be 59 1/2 and plan to utilize my 403b for REI. The amount I will have to use after taxes is between 90-100K. My chief desire is to buy ( and hold for at least 5 years) multi-unit house (preferably 3 units or perhaps 2). My credit is awful and I will take some of that money (already accounted for in that above total) is straighten it out.

Should I be looking for OPM instead? How hard would it be to "refinance" with a conventional loan after a year or so (enabling me to have cash to buy more). I know that most successful investors use OPM, but I do have it and I'm assuming that if I have a track record of good investing, it will enable me to get OPM in the future. Thoughts?

Thanks,

Philip

Hi. I need to find an investor-friendly mortgage originator so that I can have all the proper paperwork (for the Safe ACT), since I will be doing selling financing with Mobile Homes.

Thanks,

Philip