All Forum Posts by: Chris T.

Banks will finance the property up to a certain percentage of the value of the property. They don't ask if your existing loan is hml or not. 

Are you having issues trying to get a bank to finance an as-is property? 

Or is the proposed loan amount (from banks) not enough to cover your HML's loan?

Most HML would have finance part of your rehab costs as well.

I would also network in your local REIA and start asking around. And call on smaller local banks in your area.

Did the buyer ask you for credit on the 2 items? If not, I wouldn't bring it up. Most good home inspectors will list down what is deficient with the property, in order to give their client an idea. It doesn't mean the seller has to compromise. 

It comes down to supply and demand, and how motivated are you to sell your property? and/or how motivated are they to buy?

 

If the numbers work, and the HOA allows it, why not?

Personally, I don't like condos or townhouses but I know a lot of investors like them. 

thanks Mark!

@Lena S.

Keep in mind Aurora requires all landlords or their representatives to either attend a "crime free program" or have a similar certification from a surrounding suburb. 

https://www.aurora-il.org/356/Crime-Free-Multi-Housing-Program

I agree with @Sean Morrisey that it should be ripe for development. While I am not very familiar with the area, I have heard that crime rates tend to be higher and the schools are not great. But since it's surrounded by good school districts (naperville, warrenville, oswego) , the potential is there. 

It doesn't have to be all cash. Most conventional lenders (banks) will not give you a mortgage if the property is in a bad shape. You could apply for a FHA 203 loan. But Hard Money Lenders (HML) would.

The scenario you mentioned would be great for a HML. Just keep in mind there're high fees and interests involved. On the bright side, HML typically finance part of the construction as well.

@Ashley Q.

I know a couple, shoot me a message and I'll be happy to refer you. 

I would leverage your dad for his expertise in the area. As long as both of you are including insurance + taxes in your calculation, it shouldn't matter whether you escrow or not.

Double check with your county on the property taxes, and ask your current insurance agent for a more accurate estimate on the insurance.

In your area, is the landlord responsible for paying trash? if not, then push it on the tenant.

By the way, what is the ARV, and the approximate age of the major components of the house? if they're older, you may want to set aside more for your CAPEX.

@Brad Babiak

You could put a thermostat guard (with a lock) over a Nest or Ecobee but you would need Wifi. I have a guard over a regular thermostat as 1 of my tenant would open their windows, in the middle of winter, as it was too hot!! 

But you have to be check if your local jurisdiction has a minimum temperature to maintain your unit at.  

welcome @Zachary Morley

First of all, upload a picture. It will help you build credibility. Then participate in the forums, read the blogs and listen to the podcasts.

Read the ultimate beginner's guide. 

Look for local REIA in your area. Find them here on BP "events" or go to meetup.com. Networking with like-minded people will keep you motivated.

good luck!