All Forum Posts by: Joshua Houchins

@Andy Mink depends on your credit. But after rehab would be a more likely scenerio.  State Farm will refi up the 80% of the value.  Buying and refi then buying another is good way to build your portfolio just make sure you are cash flow positive.  You can work numerous formulas but I typically want my payment to be 40-50% of my rent rate max. 

@Andy Mink every state has different laws and not all liens are dropped just because there has been a foreclosure. A lot of the time this is the case but not always.  Again your real attorney is your best friend and I would not ever do a transaction without one.  

Generally depending on the bank pretty fast sometime the Fannie reo will take longer.   

@Maciej Michalak zillow can and does work ok in nc for finding houses everyone else is right by the time it hits zillow it is gone comps and  zestimate is a joke.  Refin, realtor.com even craigslist sometimes has good fsbo.  But mls access is your best option.  Good luck

is this going to be a monthly thing?

I would like to see another large group out do triea in the area.

@Andy Mink first and foremost any property you EVER buy have your attorney do a title search and make sure the title insurance company can insure the property. I would assume this is not an auction property so handle the closing through your attorney just like any other transaction. The title work is a small fee to cough up when your 40k house could have 100k in liens.  Also as I stated before make sure the title insurance can be issued and get a general warrenty deed no quick claim deeds and you will be fine.  Wish you luck on your deal.

@Marci Stein @J Scott j has pretty much pinned it down. I would just add motivation or the reason for the sale is key.  There are a lot of realtors who just want to get a listing and list it for whatever the home owner thinks it is worth. ( these are newer agents or not good ones.)

There is no exact number to use to make an offer there are to many factors involved. Furthermore the back end Roi ( return on investment) is the important number. Can you get to your ROI with your offer plus cost? Also I give low ball offers all the time if they hit you make good money and if not you only wasted 1 min clicking the docu sign button.

Good luck

@Jason D. and yes there is no way they can lien the property from a student unless default and they receive a judgement  which will pop up in s title search once you sell the house.

@Jason D.  here is a trick that works in nc but also you have to have good credit and actually find a bank that holds there notes.  Form an llc just for this house assuming it will be your personal house and then just personally guarantee it.  (Have the mortgage in the llc name dot etc)This is also a good way to eliminate this property from liability if something were to happen to you personally ie. Traffic accident, you get sued for something you possibly default on the student loan etc.  this keeps the property separate from your personal affairs.  

@Chris Flitney good luck on your new venture.  I would be happy to mentor you if you have any questions.  I have done several hundred rehabs and been in the construction and real estate business my entire life as someone else noted always add the osf ( oh sh*t factor) to every estimate I use 20% when I started and still do today.  Let me know if I can help in anyway .  Good luck

@Aaron Wyssmann as mentioned before there are a million ways to structure the deal but what I have found to work the best is 2 point at closing 12% interest paid upon closing lender is in the first lien position.  If you can't pay the points roll them into the loan.

Buy and holds if your lender is paying cash have his company or himself however he is structured be in the first lien position. Now you two form an llc or a new entity just for your portfolio together have the operating agreement lay out how you all will receive profits or how you will pay for a loss as well as every other detail involved. This keeps his original principle covered with a DOT and 1st lien position but also keeps your interest in the property as well.

If he decides to bring on a third party to obtain credit for the purchase have the loan made to you and your partners new entity. Of course in todays banking world they will make him sign a personal gurantee on the note.  This again keeps you in the deal no matter what.

By forming that entity in a professional operating agreement drawn up by your attorney that will lay a good ground work for your deals.. Good luck