All Forum Posts by: Evan J.
Evan J. has started 15 posts and replied 65 times.
Post: Low/No Doc Heloc

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
I have a property that I'd like to get some equity out of via a HELOC. I purchased with cash, so I have 100% equity in the house (about $300,000).
How easy/hard would it be to get a low or no doc line of credit against the property? Are such products even still available? I'm curious to know what people's experiences have been dealing with various types of lending institutions as well.
Post: Rehabbing an investment property in Fredericksburg, VA

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
New flooring, paint, and a good marketing campaign should generally be sufficient to get higher rent.
Are you trying to add to the resale value?
Post: New to REI hoping to make it my full time

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Hi Stevenson, welcome to the community.
I don't have any experience in Maryland but I've heard the same as far as it being less landlord friendly than Virginia. I know one investor in Calvert Country who isn't doing so well (but I would attribute that to him not being a good landlord...most aren't!)
You don't have to be licensed...but you might consider doing it for the education. Besides, I don't know what your job situation is, but working as a Realtor can help you gain valuable experience in the industry. Most people don't just jump in and become full-time investors!
@Eddy Dumire I bought my first property with cash just so I could use a HELOC for the second...mediocre ROI for that property, but it provided the opportunity to get started.
Post: New member in Richmond Virginia area

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Depends on whether you can get a better rate with a HELOC or conventional mortgage. Personally, if you can get conventional financing, I would go with that. But it depends on your objectives.
I have trouble getting conventional financing because I don't have a regular income or salary. Recently I purchased a property with cash even though a cash purchase reduced my ROI by a lot. I did it because it was a relatively valuable property and I knew I could get enough equity out of it to purchase at least two more in the same area.
Post: Paying with (someone else's) cash - Tax implications?

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
I have a deal under contract and have raised some capital from a private party to pay for it. The lender will be treating this as a "personal loan", meaning I will technically be paying cash for the property and have 100% equity (great deal for me!).
If he brings his money to the closing table to pay for my deal, will I be taxed as if it is a gift?
Should I simply have him write me a check, document it with a promissory note, and bring "my" cash to the closing table? I know loans are not taxable income, but I'd like to avoid getting audited.
Post: Starting out...

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Hi @Kevin and welcome to BP!
If you're trying to flip seriously run-down or distressed properties, you will have a hard time finding a conventional loan. If you are really confident enough in your ability to pull off a successful flip, Hard Money is the way to go. HML s do will lend based on the conservative post-repair value of the property.
Keep in mind, Hard Money is expensive and short-term (think over 10% interest) and will likely cost you 3 or 4 points up front. Flipping is difficult and lots of people get burned doing it. Make sure you have a solid exit plan in case things don't go as planned (What if it doesn't sell? Will you re-finance into a conventional loan? Rent it out?)
By the way, Bigger Pockets has some awesome tools for investors. Make sure to check out the flipping calculator:
https://www.biggerpockets.com/flip-analysis/new
Also consider "The Book on Flipping":
http://get.biggerpockets.com/flippingbook/
And of course, The Book on Investing with Low and No Money Down by BP's own Brandon Turner:
http://get.biggerpockets.com/nomoneydown/
As far as approaching private investors, sources of private money are so diverse that there is no one good answer. Just get out there and network. Go to your local REIA meeting. If your deal is really that good, they'll come to you.
Good luck!
Post: New investor in Richmond, VA - Chesterfield, VA

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Hi Caleb and welcome to BP. There's no shortage of deals to be had in Richmond. Best of luck to you and feel free to reach out here if you need anything at all.
Post: Richmond VA

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Welcome to BP! Richmond is a great area for investors. I'm in the Fredericksburg area and have been eyeing Richmond for a while.
I'm relatively new here myself, but feel free to contact me if I can help you with anything at all.
Post: Starting with the End in Mind

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Wow, you sure did trigger a lot of keyword alerts!
Looking forward to hearing about your progress. Welcome to BP!
Post: Soliciting Private Money and the SEC

- Specialist
- Fredericksburg, VA
- Posts 69
- Votes 19
Thanks, @Bryan Hancock. I'm going to consult with my attorney next week.
I don't intend to pool funds from different investors; my intent was one investor to one property, secured by a deed of trust to that property.