All Forum Posts by: Justin Putt

Beside the yellow pages where is the best place to find a lawyer to assist with setting up my company and helping me with my real estate endeavours.

I am looking to do rehabs, holding rentals, and birddog deals. Alot of this will be done out of state, but wish to start my company here at home.

I have had someone respond to an ad I posted. They are section 8 and are looking to get a house in a certain area. They said they are willing to sign a 2 year lease even. I do not have a home for them but thought I could buy them one and make up a contract before I buy the property.

Would this work and how do I go about getting her section 8 lined up so as soon as I have the property ready I can begin receiving rent.

And is section 8 safe to do in a single family home, especially one I would need to buy first?

Thanks!

Mike,

Is it possible to do this on a conventional loan though? Lets be real there is no 100% financing going on for investors anymore, at least not right now, believe me I have tried. This loan you are talking about sounds great, but can someone like me without a LLC do this and is the interest rate even worth it, because I would assume if they do a loan like that that provides 100% and cash back the rate would be higher.

I am with you on hard money. I would never want to use a HML on a rental property, because they are so expensive even for a rehab.

I am very interested in what you are doing.

Mike, do you do these properties you are going to rent, and if so, what kind of interest rate and length of loan do you get. I would assume a loan like this, which maybe is a HML, would be for a short term property you are going to flip because it has a high interest rate.

What is the benefit of doing this, and if its for a rental, wouldnt you have to refi to get a good rate for holding the property?

Thanks for everyone's responses. I was pretty sure that was the way it worked, but wanted to make sure so that I can factor that in when thinking of my cash flow. I guess in some cases it can be helpful. I could refi and pull 10k out and really only lose about $100 in cash flow. If that 10k will help me raise more capital or get me even more cash flow it might be worth it.

I like what you guys are saying about this topic. Someone going into foreclosure is not a good thing whatsoever, especially when its some blue collar working family that is struggling. But its hard for anyone. I really hope I can do as many deals of these as possible in the future because I feel like when it comes to real estate investing, this is one thing that you are able to kinda give back to people by helping them.

I might be doing a deal soon like this where the owner will be selling me the property, and then I will be doing a 12 month lease option on it so that it gives her time to get her financial situation in order to buy back her property. I get to make a little money, but the best part is I get to help someone and eventually she can have her house back.

Thanks for the response, maybe you can suggest which investment choices I should make. Have a great day. :wink:

I am currently interested in doing a couple of things. One is acquiring cash flowing rental properties, another is raising capital to have funds for future deals and have a safety net.

Lets say I purchase a rental that cash flows, but has 15k in equity because I have purchased it under value. What if I decide to refinance it to cash out lets say 10k of that equity. Will that make my mortgage payment go up, hence reduce my monthly cash flow? I am very curious how this works.

Thanks!

I am no expert, but it does not look like you are going to make much of this deal. I am assuming he will only get paid for what is owed on the property, and then if you wholesale it, even to make money, who is going to buy for that price? Unless it needs repairs and will have a ARV of much higher.

So with a RE license, you must work for a broker to do any deals at all? I cant do this on my own even with a license?