All Forum Posts by: Curt Davis

Adam, the goal should not be to buy a home with the idea of being laid off and then suck up the heloc to live. She should have aback up plan in place or some reserve cash. If she is making $20/hr she should be able to set some cash aside. I dont mean to sound blunt but I have seen many people buy property for the wrong reason and the last thing you want is for someone to get upside down.

Matt, here is an example of how the hard money works at least for what I do for my investors.

Home appraisal estimate of $80K
HM loan for $56K ( 70% )
subtract $1K for attorney closing cost
subtract $2,800 ( HML takes his 5% interest off the top )
subtract $5,000 for the rehab and you are left with $46,200.
To buy the home from me will be $45,900. You would get $300 cash back at the first close. Once the repairs are complete and the appraiser has turned his report in to the mortgage lender you will refinance at 75% so your closing refi cost on the back end will be included into the loan, thus you have just completed a deal with no money out of pocket. There are no seasoning issues in doing this( at least not yet ). I have done this many times. Hope this was a good example.

DO NOT USE YOUR CREDIT CARDS!!. There are better ways to lock up properties. Do not run the risk of hurting your credit that way.

Ivan, The way you get around this is to make your rehab figure just high enough to get the full HM loan possible. HM lenders do not want to lend out anymore money then thay have to so you need to be creative. Make your numbers work in your favor.

Jonathan,

You need to create what is called " Double Opt In " When someone goes to your website, in order for them to look at your properties make it so they have to enter their first name and email address. Once they input that they will get an email and in the email it will have the link to the properties. If they are serious they will do this. You are not asking for their phone number, never do that. If they are interested they will contact you. Our website gets a ton of unique visitors monthly. Hope this is what you are looking for.

My suggestion,

Dont waste your time doing a short sale. It is so much easier and faster to do a wholesale deal.

I have sold a few properties to clients who have wanted to use their RE agent. I would just tell the or the agent that I would be willing to pay them a flat fee and not the 3% of the sale price. If your Gross profit was only $10K but you were selling the home for $100,000 then you would be paying the agent too much. I usually settle on either $1,000-$1,500. IF they dont like that then I would just move on OR you could try to get the buyer to not use the agent. Just a suggestion.

Renae,

The best advice would be to keep your head up and do whatever it takes to make it. You need to do a lot of homework regarding investing. You need to buy some books and I would suggest joining your local REIA. Also you would want to figure out what it will take to get your credit repaired. Many people will turn away from you knowing you are in no way able to buy a property. Keep your head up, you will figure it out :)

Josh,

I have not run into any seasoning issues. For whatever reason when you use hard money you are able to refinance as soon as possible. Thanks

Chris,

What you would do is buy the home using hard money, rehab the home, get it appraised and then refinance it and pay the hard money lender back. It is very easy. You will have instant equity and positive cash flow.