All Forum Posts by: Christopher Pride

At least for me...I think it comes out of necessity or opportunity.  You buy a place and think...I can remodel that or I am not using that bedroom.  Boom.  You're an elite house-hacker. 

I suspect you're not getting much feedback because there's a wealth of info here on wholesaling.  I would spend my early times learning as much as I can, asking myself how I can bring value to someone who wholesales. Someone once told me people do business with people they like.  Get out, meet people in the area, ask questions and add value. GL!

I am house-hacking right now and need some funds to finish the project with the goal of listing it asap.

I started exploring financing and realize I don't have a benchmark in this market.  So far I have an offer for 2 points, 9.5% for hard money plus appraisal.

I am looking for 100k and have about 400k equity on a 700k property in a hot neighborhood.

Have you encountered anyone able to do better???  Can you yourself???

Ideally let's discuss ways to put more deals together and make more money.

I'd be willing to discuss more...  What would be a typical arrangement?

I have financed other deals with partners or my own money but I am a little out of my league when it comes to the market on private funding.

I am hoping someone can point me in the right direction.

Sadly, Mom passed in 2018.  In her final moments, a relative weaseled in to her life, attempting to steal her estate. We came to help our Mom at the end but this person literally hid the fact my Mother was ill.

I threatened suit and brought them to the mediation table, being the only executor and beneficiary.  We signed an agreement returning the estate in lieu of criminal charges and civil suit but we've had several delays with the court trying to clarify bank, insurance and other accounts.

Several months ago, after waiting for this to be resolved, I decided to house-hack and just do the remodel myself, financed with my credit cards. I've gotten far but after another delay, I'm in between a rock and a hard place...

My wife and I had been sailing for some time and as a result have very little income to show. Naturally as a result we were denied when shopping for a HELOC. We're at the point now where the CCs are eating us, we're getting close to maxing out, and thanks to full-time work remodeling this house (eg not employed), our cash reserves are shot. With another 2 months added for the court to clarify another detail, my wife and I are under time pressure. We're signed up to sail in an annual rally starting the beginning of November 2019. Whatever happens, we're out of here for at least a month, ideally longer; We'd like the house closed by November 1.

Hard money? Private investor? Crowdfund?  Looking for any help or direction you can share.

Also, if I may add, be sure to sign everything (your name) DBA (your business name_, LLC. I got hosed one time for just signing my name on a lease for a property for the business.

Thanks, Michael for taking the time. I appreciate that way of looking at it. 

I was considering just popping it in a mutual fund or some other investment and just rake in the return but I am motivated to do much much more. 

I am not as inexperienced as I let on.  It's been 10 years since my Oregon real estate license but I've managed to keep a few toes in the game.  I have always had a somewhat linear way of looking at things, thanks to catering to a few flippers, but as I grow wiser (achem) I am really wanting to find a niche more profitable and far less manual labor! Hence the idea to move toward multifamilies (it's approachable).

I have always wanted to get in to raw land and developments. I've done rural, farm and forest land so I'm off training wheels so to speak. I certainly would need a mentor for that but I would create a lot of value for someone willing to give a little direction and field the occasional question.

Thanks again! Any more advice would be welcomed.

 No. No I wouldn't. Great way of looking at it.

Thanks for looking.  Very much in need of some advice, here.  Sorry if it's a bit long.

I'm stuck between 4 scenarios and hoping you can help me figure out a smart choice.

Backstory: Wife and I were sailing our boat to Mexico when my Mom got sick.  It's rite of passage but after a year of mourning, we're trying to figure out what to do. Mom left me her home in Southern California, as well as some funds. We decided to stay in the house temporarily.  It needed a lot of work so, rather than just cut our loss and sell, we're doing the remodel and waiting for the sailing season (winter) to come around.  Neither my wife or I want to stay in Southern California.  We wouldn't want to invest in LA, either so this would be the only property here in the future, according to our plans.  Currently this house is the only property we own, as well.

Goals: To sail over the winter but other than that, I am wanting to hustle, not afraid to travel, find and work on projects.  A goalpost I am trying to reach is $5k passive income per month. I believe that to be easily reachable but I like realistic goals.

I am an unlicensed real estate broker in Oregon (exp 2008) so I know the process, but don't have access to the MLS. Very interested in multi-families, commercial and land development. I have a good handle on buying and selling residential, concepts and terminology but I want to expand in to full-time RE investing. I can run a CAP rate but beyond that I am not exactly savvy. Reading more and more but I have an issue that I'm racking my brain trying to figure out.

The 4 scenarios:

1. Stay in the Home, Air BnB the master and stay in a small portion of the house until October, sell in the down season. This will roughly cover the mortgage as-is, but we will be selling the house out of season and well...a lot of people are talking bubble. Sales numbers in this area are half what they were last year so we're feeling pressure to get it done if #4 is the choice.

2. Rent it, assuming the mortgage. This will net us approximately $1200/mo if we manage it ourselves.

PITI $1650, Rent ~$2850

3. Refinance and rent it. This would free up capital to do some transactions, plus keep it for a hopeful increase in value.  

Equity: $420k Mortgage: $250,000, interest rate: 3.6%

4. Sell. Estimated gross sale price of $675,000. Would free up the capital, as well as remove some emotional baggage, keep us from having to come to LA.

What scenario would you lean toward and why?

Last question:  Should I look at a HELOC, hard money, a partner or some other form of financing to help me get over the hump of a kitchen/master bath remodel?  Which one would you recommend? 

We're approximately $10k in CC debt right now, currently racking up cards a little faster than we're paying them off.  We can clear them up in 2 months but the problem remains, I need to finance the rest of the remodel, approximately $30k.

Thanks, guys in advance for any help or insight you can provide.