All Forum Posts by: Joel Calkins

Hey Anthony,

First off you need to make sure the area you plan to add the ADU in has no zoning restrictions or CC&Rs (covenant codes and restrictions) as this can put an immediate halt to your progress. In order to stay where you want you might have to look into creative financing options to make the deal work for you. You may also want to look into comps for renting by the room to see if that could procure more cash flow? If you're really trying to hustle for a good deal you could pursue off-market or seller financing deals if they're available for your area (I assume your market is red hot).

If you have any questions I am always available to talk real estate. Good luck!

Wholesaling is a great way to get the ball rolling in real estate. 

Here are some things that may help getting started:

Do some research in the market you plan to gather contracts in (Driving for $$$, skip tracing, Redfin fixer-uppers)

Source a pool of cash buyers. (local REI club, craigslist listings, fix and flippers)

Decide whether you will sell the contract or double close.

Make sure to do plenty of due diligence but don't fall into 'analysis paralysis'. Feel free to PM me if you have questions, I am starting a wholesaling company in the SE Michigan area myself!

Hey Guillermo, great question!

First off you need to figure out how much equity you currently have for a HELOC. Typically processing takes 2-4 weeks. Then how much you need to borrow, what your current interest rate is, and what kind of term you want.

The best options for HELOCs are:

https://www.figure.com/affilia...

https://www.bankofamerica.com/...

https://www.penfed.org/home-eq...

As for a cash-out refi, you should compare the rates on the refi and HELOC respectively. These often take all the way up to 8 weeks to complete. Depending on the figures you come up with I'm hoping this advice helps.

Good luck! 

Hey Tammy, tough question!

You may want to look into your local laws and regulations on tenant-landlord laws. Having that said depending on the rental agreement usually, appliances are covered by the landloard. Most states have a reasonable time law stating that appliances should be repaired/replaced in 14-30 days, if there is a significant leak then closer to 7 days. Luckily in court, this issue is likely to be dismissed or postpone since the tenant never notified you of the issue or gave 'reasonable time to repair'. 

Hopefully this cleared things up, good luck!

I assume you're doing this to avoid a large downpayment on a second deal. Smart! 

As long as the conventional loan assumes the FHA on your refi there shouldn't be an issue procuring a second FHA loan. As long as there is not a pre-existing FHA loan you should be able to apply for a second. Do your due diligence and speak to a qualified FHA lender.

I hope this helped! Good luck.

This could be dependent on your location's laws and regulations. If you're talking about conveying a title in most cases a minor isn't able to do this. But in the instance of a title company working with a minor to confirm a seller's possession of the title, there shouldn't be an issue. Contact an investor-friendly title company and ask. Maybe there is a custodial option as well.

Hey Brandon, Welcome to BP!

The drive you possess to learn and expand your network will do you wonders!

What specifically are you wishing to learn about? There are plenty of avenues of REI that all have their respective pros/cons. Whether that's wholesaling, single-family, multi-family, live-in flip, or buy and hold.

Hey Brendan, first off thank you for your service!

There are a couple of great options you could utilize to finance your next deal. First of you are able to take out a second VA loan to finance the second deal in most situations. This is called second-tier entitlement. Another great way to consider is a HELOC or Home Equity Line of Credit, this is assuming you have substantial equity in your current home. Using this could be a viable option especially if there are renovations to make on the prospective deal, and is typically low interest. It never hurts to talk with an agent or lender about possible financing opportunities.

If you have any questions I'm always down to talk RE. Good luck!

Hey Ryan,

I am not an accountant however you can always request a review on property taxes if you own the property. If you have reason to believe the property taxes are high, review the assessment, and get an independent appraisal. A great way to quickly assess is to look at comps in the area and gather a good case with plenty of data. This could be a great way to make a deal work for you.

If you have any questions I am always down to talk RE. Good luck!

Hey Patrick, What sort of investing advice are you looking for?