All Forum Posts by: Clifford Paul

@Account Closed pay off your debt first, then get financing, otherwise you are asking for trouble. The bank is telling you that you are too much of a risk for them to lend to and not financially ready to take on a property. Probably not the answer you are looking for but I don't see why you should compound your risk given that you have $100K in student loans. YIKES Besides, as you pay down your loan you get a guaranteed/immediate return. :)

I agree with Brain, get your debt payed off. Decrease your expenses, get a better paying job, get a second job, you need a side hustle or two.

0 Votes

Originally posted by @Javier Rosales:

Do I take a contractor when I am gonna get measurements for the property, before I start my bidding?

When staring out yes you need someone who can do a good estimate. The good news is after you been investing for a few years you will be able to do it yourself.

0 Votes

Build a relationship with your small local bank or credit union. One that does in house/portfolio loans. My bank hasn't pulled my credit report in 20 years. I do have to update my net worth report once a year and update my tax return.

0 Votes

Yes! I my SFR's net from $503 to $1000 a door. My crash pads net $3000 per SFR or $1000 a door. If I can't net $500 a door I don't buy it. So needless to say I don't buy 90% of the deals that come my way.

2 Votes

Originally posted by @Account Closed:

Originally posted by @Caleb Heimsoth:

Originally posted by @Account Closed:

Originally posted by @Caleb Heimsoth:

Account Closed have you told your bank the down payment is a loan? I am guessing you haven’t which means you’re committing mortgage fraud. Your parents will have to sign a document stating it’s s gift, and doesn’t have to be repaid.

My parents have already sent the check with the down payment to the lender so it is simply an informal agreement between us for me to pay them back not a loan from another lender.

It’s not informal, you must tell the bank it’s a loan. Doing this will likely make the bank not want to close the loan. If you don’t tell them, then it’s mortgage fraud

Apologies if this was unclear. The property is being purchased by all three of us (myself and my parents). The "loan" i have with my parents for the down payment has no effect on the bank because we are paying the down payment regardless of if I pay them back or not (which of course I will). Whether or not I pay my parents back for doing this is completely irrelevant to the bank.

Still mortgage fraud! But if you know better than the rest of us hey they are only giving out 48 months sentences in Federal prison right now. Anyone can do 48 months no biggie.

0 Votes

What's your position? Cash buyer? Financing? Do you have pre-approval in hand. You probably haven't found the right agent yet. You need one that has pocket listing. Once you find the right agent and can close the deals you will receive more offers than you can buy.

0 Votes

Originally posted by @Mathew Burnett:

@Clifford Paul a lot of 2 bed 1 bath houses in my area are usually around the 80-90k range. So I'm hoping it'll be somewhere in that range.

Nice! Keep us updated. If you pull it off with a valuation of 80k that will be a huge win.

0 Votes

Everyone is going to have a different answer to what's important to them. Investing is very personal. I like cash flow and 75% COCR. But those are special rentals. On everything else I shoot for 20% to 25% COCR.

1 Vote

@Suly B.:

Sports cars, cigars and scotch! K

6 Votes

What do you think this house will be worth once completed?

0 Votes

All Forum Posts by: Clifford Paul

Clifford Paul has started 5 posts and replied 464 times.

Post: Income Producing Property

Post: Real estate Purchase

Post: Financing new Deals Quickly

Post: Does anyone net over $250/door in Texas...???

Post: Loan Payment Question

Post: What to do when the market won't take you seriously?

Post: Building my own house.

Post: The numbers that matter

Post: What’s your biggest expense as a real estate investor?

Post: Building my own house.