All Forum Posts by: Joseph A.

@Ricky Nigro I wouldn't touch this deal because the cash flow does not meet my requirement nor does a 4% return excite me. I would offer a lower amount or keep looking for another deal. 

The rent from the 2 units in the first 3 family would count towards your total income. Also certain lenders can use income from the next investment property you buy to qualify you for the mortgage. 

@Jay Libowitz set up the utilities for the two days and then have the tenant change the bill to their names as a condition of moving in. You'll receive a final bill for the 2 days of utilities which will probably cost them more money to send to you than the amount they will charge you for the two days.

@Hoyoon Chae no problem

Originally posted by @Paul Chae:

Hello Fellow Biggerpockets users. I have a question regarding hardmoney loan for BRRRR.

Let me describe my situation

- looking to get around 100k from hard money lender to start BRRRR. Not much saving at the moment.

- working with Fund and Grow, an entity that helps with getting fund, but was not successful to get business credit right away as advertised, heard that I need to use personal credits only for the next 6months to build relationship with the banks, which I feel is too long for me to start.

- After the banks went through my credit history, my credit score went down to 695-715 ish from 735ish.

- I am a nurse in nyc, work 3days/wk 12hour shift

- currently on 1 month vacation, moving on to a next job in mid January , annual income is 90000-105000

- target properties are going to be distressed, $40000-$70000 range in any adjacent areas of NYC.

I looked up what hard money is, how they work, etc. But I am still wondering if "my" situation suits for this type of loan? I'd love to jump in if there's reasonable amount of risks that I can recover if anything goes wrong, but my intuition says I might be crossing a very dangerous bridge, which is seeking hard money lender to start BRRRR without much money in my savings

I'd appreciate all advice that you guys could comment. Thank you all and Merry Christmas!

 Hard Money lenders are going to want you to have skin in the game. They will usually require you to put down at least 10% of purchase and rehab, some lenders will lend 100% of rehab with the 10% down payment on purchase price only. You will also need to have money for closing cost something I forgot to account for getting my first hard money loan. I also went over my budget and had to come out of pocket to finish rehab even though I accounted for a 25% contingency in my rehab budget. Investing with not much savings could land you in a situation you don't want to be in. I would suggest you partner with someone more experienced or lean on a more experienced investor to guide you through the process.

@Andre Bias I've had some success with fastpeoplesearch I find that it's hit or miss.

@Zakee Richardson yes it is possible as long as the price you get it for is low enough for you to force equity. You can cash the previous owner out of the note after you renovate and get the property rented and do a cash out refinance. Just be mindful of the terms of the seller financing, some people put penalties for early payoff.

I went through this when I was in the process of buying my first property about 3 years ago. I would look at properties on sites such as Zillow and click the contact an agent button when I was interested in a property and they would ask me to sign an agreement and tell me anything to get a sale in a very pushy manner and it was off-putting. So after a while I figured out to just call the listing agent and I wasn't always able to get in contact with the listing agent. So I started going to as many open houses every weekend in the lower parts of Westchester county and the Bronx until I met a real estate agent that was hosting an open house and told me he wouldn't buy the house cause he doesn't like it and didn't try to sell me the house he was showing. I used him as my agent because he was honest and a straight shooter and didn't have to sign anything. I say all this to tell you, finding an agent is like dating you're going to have to go through a few before you find the right one.

My friend signed up for one and they let him bring a guest so he invited me to come along. I informed my friend that they will probably try to upsell us to a more expensive package. It's next weekend, I'll let you know if it's worth next week.

Originally posted by @Phillip White:

@Joseph A. i am hoping to get 1000 per month.

The principal and interest on a 129k mortage will be roughly half of that or slightly higher depending on the interest rate you get. That doesn't leave much room for cash flow after all of your other expenses are accounted for. Based on my conservative numbers cash flow would be less than 100 and that's only if the property taxes in this area are cheap. I would flip this property but that's only if you are confident in the 20k to rehab and that it will appraise for 129k. Unless its closer to the 100k then I wouldn't touch it at all.