All Forum Posts by: Jason Eyerly

You're neglecting the 70% rule if you assume $10k in repairs and a purchase price of $110k with an ARV of $155k. You could always hope you'll see some appreciation, but from what I have read doing so is a gamble at best. After expenses your cash flow should be $750 less the mortgage. So it will cash flow. Just my two cents, let's see what the true experts have to say.

I was planning on using Google voice and doing just that actually. I will look into PatLive, and keep you in mind for Central IN. Thanks for your input!

Hello Wholesalers,

I've planned a dedicated phone line, business cards, a website, a Facebook ad, Google ad, and direct mail campaign. These are budgeted and the ad campaign each have $500/month, and $1,000 for the direct mail campaign. Assuming all goes as planned, these should run for about thirty days each, and bring in a few leads. My main question is: how often should I run these campaigns? If I spend $2,000/month in marketing and countless phone hours but only make $2,500 on one deal it's not really worth it. Opinions? I'm not sure the geographic of my region but I'm targeting Northwest Indiana, anything within an hour drive really. Nissan Versa at 35MPG :))

Regards,

Jason Eyerly

Hello!

Marty said in the first BP Podcast that access to the MLS in essential even if you don't plan on making offers or listing (which I do) and it's much easier to look at comps and such yourself without leaving all of that to a realtor, and so he STRONGLY recommends getting your real estate salesperson license. I've looked up whats required in my state, but I still don't understand this MLS thing. I thought MLS was just looking at websites like Trulia, Zillion, Realtor, etc. What happens or changes if I get the license? What does it allow me to do that I wouldn't be able to otherwise? I've noticed my local newspaper refers to an MLS number. Is there a central MLS that has all properties? Or just a local MLS? Thanks!

Best Regards,

Jason Eyerly

You have all given me much more information than I could have ever anticipated! Thank you all for your help. I think I will hold off on financing any flips for a rental until the end of 2014 when I have a tax return with my trading income stated, and I can use my equity in stocks and commodities to show I don't 'need' the loan. This should make the process much easier and logical for me, with a better chance of being approved. I was going for a 12 month HML to give me six months to rehab, and decide to rent it out to cash out refinance or just sell it. However, for now I think just selling it is the best and simplest option. I just didn't want to take a HML, with a cash out refinance, and not be able to get the loan because of my 0 income. I'm glad I know now that I can use the rental income by itself, and my stock equity. Those two alone and my lack of obligations I may be able to get approved now, but I'd rather just wait, and not take on any risk or leverage. Thanks again, everyone.

Best Regards,

Jason Eyerly

Try finding a sheet metal fabricator or a store that specializes in stove hoods and industrial kitchens. They can usually make them custom.

I do have $100,000 in stocks and no other obligations.

Have you read the ultimate beginners guide? Having a career and a home you have a lot of options such as a HELOC. Check out the financing your investments section of the guide!

I like the idea of taking out equity in your home, using it to make a down-payment on a loan for property two, and cash flowing with a second property. A lot of banks won't finance a fixer upper, so keeping that in mind you may need to use a HML, private lender, somebody from an REIA meeting, or another loan method I'm forgetting to mention, depending on quality of the property. You could always make your second purchase something already occupied and cash flowing, as long as it's at the right price, even if it doesn't need rehab.

Good luck!

It is what it is, none of us are perfect. The economy hit everybody differently. I think it's funny that real estate is supposed to allow us our freedom, but you need to have a job for all these loans, even with property backing up the loan. I hope my trading income this year will count as income.

Cash out refinance aside, what would be some viable exit strategies for a flip then?

Do you need proof of income to cash out refinance? I don't have a job, I'm just a student so this would make it difficult to cash out and pay off the HML if they are expecting me to have income, unless they would accept proof that the property has a cash flow, meaning I have tenancy and proof thereof. My business partner however has income, but terrible credit.