All Forum Posts by: Ham Merritt

@Thomas Greeley Welcome to BP. Wisconsin is a great place to start. Lots of great resources can be found here on the site. Best of luck to you.

I have some information available to me that tells me the seller on this property would take as low as $165K for this. He wants to be done with it and get rid of it. Not because there are things wrong with it but because he no longer wants to deal with the headaches that come along with being a land lord.

Do you know of any buyers for this?

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=1apzqr4jzn54&s=19&id=1&san=65979&cid=1

@Account Closed you will be able to find an appraiser through Google. Keep in mind, appraisals in this area are about $400. If you plan on using conventional financing, the lender will require an appraisal. So, you would want to avoid getting 2. I would recommend connecting with a real estate agent first. The agent can then connect you with an inspector. The appraisal will come later when the lender orders it. This will be right after you sign and are under contract. Same goes for the inspector, you will only want to order 1. Lenders do not require an inspection however, any realtor will recommend it. I think it's a good idea to get one as it is more comprehensive than the appraisal.

@Nicole Heasley Beitenman Do you know how much you are trying to save for a down payment? The amount needed will be dictated by the type of purchase and how many units. Purchase types can be one of the following...primary residence, investment, second home. From there you have 1 unit, 2 unit, 3 unit, 4 unit. Required minimum $ down is all over the board. As low as 0% and as high as 25% for the minimum. If it is a primary residence you will be subjecting yourself to lower down payments. Even on an investment purchase, SFR only requires 15%. SFR primary residence can be 0%.

@Marco Morales Welcome to the BP community. I love BRRR & Flips. Good luck to you.

@Alex A. Risky business if you will not be living in the state. Also, I forgot to mention in my last note...every loan, regardless of the size requires the same amount of work. This being said, loan officers stay away from the smaller loans as they will not make as much commission wise however, would have to spend the same amount of time on the file as they would a larger loan size.

@Alex A. In order to do this you, for the most part, would have to be a hard money lender or a portfolio lender (Sub Prime). Conventional lending is not a good fit for what your trying to do. The federal government has a cap on what conventional lenders can charge. This being said, once the loan amount dips below a certain number, all the profit is taken out of it. Further, if the loan is really low, it will not pass the quality/qualified mortgage rule. If you google QM Mortgage you can read up on it a bit. Bottom line is, it is hard to get a conventional loan under $50K as the lender will be taking a large hit on it and basically giving you the loan for free. I don't know of any lenders working for free that are still in business. Hope this helps. 

• No personal income used to qualify
• Qualification based on property cash flow
• 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Credit scores down to 660
• Rates starting in the low 6’s
• Up to 75% LTV
• No DTI restrictions
• Must have current mortgage
• 1-4 units and condos
• No limit on number of properties financed (5 with AOMS)
• Loans up to $1 million
• Seller concessions to 2%
• 7/1 ARM

@John G. as long as you are trying to obtain conventional financing for residential real property, you will not be able to use an LLC. As a REI, you cannot use an LLC to protect your assets.

@Kyle Mack Well done.