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All Forum Posts by: David Roberts

David Roberts has started 35 posts and replied 344 times.

Post: COC hit when purchasing with cash

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

It seems that a lot of investors that do all cash in on a property they couldn't get with a bank initially, will buy it cheap, fix it up, then end up refinancing their cash back out.

So if your property is cheap at 30k, and you add 10k to fix it, now it's worth say 50k (no idea what the values are in your area but 500 / month for a 50k home seems low no matter where you are lol)...you refinance it at 75% of actual repair value, which is 37.5k back out.  You are 40 in at first, and now you're only 2.5k in after the refi. 

By your numbers you are cash flowing 351 a month, or 14% before the refi.  After the refi you are cash flowing at 155.21/month, with your risk (cash still in) at 2.5k. 155.21x12/2.5k = 74.5% cash return, and you have almost all your initial investment back in your hands.  

Post: HeLOC Question

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

I have dealt with the credit union on all mortgages and they never sell my loans.  However my plan is to buy a home in cash and do a cash out refi and my credit union has a 6 month wait to apply but will only use sale price plus documented receipts or appraisal but whichever is less,  or I have to wait 12 months to use appraisal value.  I'll need to find someone willing to use appraisal value sons 3 months in or so. 

With a heloc say I qualify for 75k,  but I take 50...but a month in I want to take the 75k...can I increase it mid term? 

Post: HeLOC Question

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

My girlfriend and I bought a home in 2010. We now have at least 100k equity in it. My girlfriend has the mortgage in her name and I was quit claim deeded to the house. Can I get a HELOC on this house? I assume I can since I'm on the deed, and maybe she would just have to sign off on it?

And, how long does it take to get a HELOC closed and funds in hand from application to close?

Post: General LLC vs umbrella insurance for small-time investor

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98
Originally posted by @Saberian Younger:

I've talked in detail with several people about this. An LLC also ties up money and makes it difficult if not impossible to access it. The advice I was given for my portfolio was a 1-2 million umbrella liability policy. The quote I got for 1 million was $100/month. I know investors do both but that's the route in using.

 What do you mean that it ties up money that you can't access?

I was advised by my attorney that if I wanted to use LLC money to pay my personal bills I just write personal checks to pay the bills, then write an LLC check to myself for reimbursement.

Or did you mean something else?  Or is the advice I got bad? lol

I already told Joe this but I submitted 2 offers sight unseen (after reviewing photos) and they lectured me on how that wasn't proper because it wasn't fair to other agents and their clients, and thta they take a lot of time to call the agents, set up showings, do paperwork, etc , and would rather show me a house first than do all of that.

I said i figured i was saving time.  I'd rather write paperwork and make a phone call than use gas put miles on my car.  

Anyway, maybe I should not have done it on account i'm a newbie, but that should be the reason, not because I should be required to go see a place in person first.

I just think my realtor is not investor friendly.  They are homeowner friendly...and that's fine.

Given the way Wayne county has been run, I'm not surprised if they were screwing around with the agreement he had with the county.  Maybe it was all true and that's why they gave him his deposit back.

A friend of mine uses quick pay with chase because it's free and easy, and I think I'm going to start that as well on my next couple of rentals.

Post: Tenant Claims He Smells Mold

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

What if you said "you pay for the mold test and if there is mold, I'll reimburse you and pay to get it taken care of?"  Of course...like you said if there's some kind of 'trace' that isn't really a problem for 99.99% of people...I dunno.  Let him out of the lease?


I worry about this also sometimes.  Haven't had a problem yet.

Post: Short Sales

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

Jackie in your experience how long are short sales taking,  particularly in Michigan? There is a house I want to put a bid on and it would benefit me for it to take a few months anyway,  but I was just wondering what you are seeing these days. 

Post: Uneccessary frugality?

David RobertsPosted
  • Brownstown, MI
  • Posts 344
  • Votes 98

I'm very frugal and rarely splurge but if I do I try to but stuff that's going to last a long time or that I can see around me.  Travel is not my thing but if it was I'd take advantage of rewards programs on credit cards. 

Being frugal and living well below your means is what affords you to be the landlord and not the tenant.  But toys that I have spent money on are  pinball machines,  a classic car,  etc.  

Part of being frugal for me,  is its fun to watch my bank accounts grow.  I do enjoy it,  it's not really a chore to me. 

I hope to be able to use cash flow to pay primary mortgage and student loans off on the next 5 years.  That would be nice!