All Forum Posts by: Eric Y.

I should be there.  Maybe @Mark Holmes is interested as well.

Are you asking small local banks?  I find they understand investing in their own community and can be more flexible.   It would be a portfolio loan and perhaps if you show that you have plans for more properties they would be more open to lending on this one to get your future business.  I think they don't make a lot of money on the smaller loans which could make them more hesitant to do all that work for a one-off.

Originally posted by @Chris T.:

@Eric Y.

An idea is once you achieve a target goal (whether it's your projected ROI or you've

Solid advice here Chris.  I think I will start to develop a little program like that.

I must have misunderstood the conversation.  It was a fast exchange :)

Thank you @Buddy Holmes!

While listening to one of the myriad of podcasts I follow to learn more about real estate one of the guests mentioned a way to help a spouse be on board.  First I want to mention that my wife isn't against doing this but while numbers on a spreadsheet and a bank account are good enough for me I think it would be good for her to see some more tangible good outcomes.  This is just my idea, not hers.

So the guest was talking to a friend who had just bought a place for $80k but had a wife that was grumbling.  So the guest asked his friend if he would have paid $85k.  The friend said yes it would be worth it at that price too.  The guest then told his friend to buy it at $85k and take $5k to go on a vacation with his family.  That turns the "negative" of bringing on another property to a positive that the family looks forward to.  There weren't any details given.  This was a side comment.

I've only done one deal but I can't figure out how one would do this.  Let's use the numbers listed above.  Let's say I negotiate down to $80k which is 70% of assessed value.  Wouldn't my bank know that and finance accordingly at $80k.  So, how do I get that extra $5k into my pocket?  Do I ask for a "credit" from the seller?  That seems like it would go badly.  i.e. "I just bought this from you at $80k but I'd like you to sell it to me at $85k and then you'll give me the $5k back."

Can someone help me to see how to do this?  Are there any negatives besides the obvious higher mortgage payment and less equity.  Let's assume the deal still works even at the higher final price of $85k.

Thank you!

Originally posted by @Brian Garrett:

How much total do you have in the deal? Can you break down the numbers?

I have $0 out of pocket. I have about $15k out of my HELOC on my primary home invested. That includes downpayment, closing costs and some minor repairs.

Are you looking for something more?

@Tony Wooldridge

In Ben Leybovich's CFFU courses (Cash Flow Freedom University) (www.justaskbenwhy.com) he mentions how important it is to have your PFS (Personal Financial Statement) in order before going to talk to a lender and Ben provides a template.  I used that template and talked to the lender as well about how I had calculated my numbers and what studying I had done as well as the mentors I had connected with.  

Both of the lenders commented positively on my preparedness and also about the amount of study I had done.  One specifically mentioned that he was using that as a part of his rating when he went to the committee to ask about the loan.  The other mentioned the 5 C's of creditworthiness of which my preparedness went toward Character.  They could see I was prepared, planning for contingencies and picking up a profitable deal, not just a cowboy begging for money.

@Peter Mckernan Thanks! Actually my wife isn't doing much at this point but it's important for her to see some immediate positive results. After all she gets stuck with the immediate results of me not working on things around my own house :). She's already gone out to buy some flowers to plant. My payment is getting to see her enjoy that. @Meghan McCallum Well, I'll toss some spreadsheets your way soon to get your learned opinion. Maybe a BRRRR, maybe small multifamily.

Today I finally filled my first rental.  Thank you to @Brandon Turner and @Joshua Dorkin for starting this site and publishing your books.  I have  J Scott's  Flipping books and Brandon and Heathers No/Low Money Down, Books on Rental Property and Managing and Tax Strategies.  These were my 101 level of understanding (and beyond that too).  I really appreciate how thorough and step-by-step you made them.  It helped me to feel confident as I walked through each stage of the process.  Thank you especially for your podcast which has accompanied and encouraged me on my commute for months now.  Thank you @Ben Leybovich  for the 201 level with your CFFU.  Every lender I go to comments at how well prepared I am with my PFS, even adjusting their recommendation for my loan accordingly (apparently they weigh preparedness as a part of their criteria)

Thank you @Meghan McCallum and @Mark Holmes  for mentoring me in my local market.  (and the others that aren't on BP .... yet)

Thank you also Brandon for your webcasts.  Your "Purchase your first home in 90 days" presentation really helped light a fire under my ***.  I didn't make 90 days because my wife asked me to wait a bit but the direction was set at that point and I knew I would make it happen.

My first house: 1bed, 1.5 bath from the MLS. I went with a nice home that was easy to do for my first. (As Ben would say: Desirability!)

Purchase: $48k

Loan: $36k @ 20/5%/5

Rent: $750/mo

I used a HELOC to pay the down payment so my ROI is "infinite" so far.

It felt really nice today to be able to deposit that first check and hand my wife her management fee (I asked her to spend it on her and not the children!)

Now on to the next one!

Here 1 month is pretty normal.  Why not call the large professional apt complexes in your area area and see what they are doing?  I would just call like a prospective tenant and ask what the terms are for their apartments.