All Forum Posts by: Jon K.

https://beltwaylending.com/

The Owner, Brian Valdivia, is a well known investor in Baltimore and has a great reputation. I've done business with Brian many times and have used beltway lending for a refi out of a BRRRR before. Great experience, can't possible oversell them.

When it comes to mail piece selection, what you will find is that different mailers work in different markets and/or with different audiences. Regardless of someone's experience with a "photo of your house" type mailer, your mileage may vary.

Someone's "photo of your house" mailer may crush it, someone else may do great with long form professional letters, and someone else may do well with fluorescent yellow postcards. Those same yellow postcards may not get you a single call.

Honestly, you just have to experiment and track your KPI's as much as possible. Anything you're going to try with mail you should be prepared to let run for 6 months as that is generally how long it takes to see consistent results.

Cool, howdy!

I'm currently enrolled in apartmentaddicts.com and have learned a lot from it in the two short months in which I've been a member. There's a networking aspect to it too in that you have slack access to other members. I'd highly recommend it if you're open to a paid mentorship.

I believe it depends on who you're trying to add to your network and for what purpose. If you're laser focused on virtual wholesaling for example then a virtual wholesaling mastermind is likely going to add more people to your network with the same goals as you where you can swap info and learn together. I do go to REIA meetups, meet investors across the country through Facebook and then do video calls, etc etc. Lots of ways to do it and it's all valuable.

You're missing one of the most important benefits: networking. Most masterminds/workshops/mentorships in my experience come with a network of not only the other students who have similar interests but the mentors/coaches themselves. Your network is your net worth, all day.

With rates climbing and funding sources becoming less reliable, wholesalers have been experiencing a lot of end buyers backing out. When that happens they're stuck either closing themselves, scrambling to find another buyer at the last minute, or losing the deal and damaging their reputation and costing themselves an EMD.

1) If you're serious about buying the house and this is a wholesaler you haven't worked with before, I personally wouldn't attempt to negotiate the EMD. They want to know you're serious and that they'll walk away with a minimum of 5k if you flake out. Just be aware it is likely non-refundable barring very specific circumstances such as the seller not being able to provide clear title. Read the assignment agreement carefully as it is a legally binding contract. If you don't understand it, hire a lawyer.

2) No. 5k is not an unheard of deposit for a wholesale deal. The HML will not care.

3) Your deposit will be applied towards the purchase of the property. If the HML is financing 100% of purchase plus closing costs then that amount will come back to you. Just be sure you're paying this deposit to the title company/closing attorney (not sure which Texas uses) and not directly to the wholesaler.

4) Can't help you on this one.

Not googling well today so thought I'd just ask. Can anyone please provide the latest rules at a high level around wholesaling in Indianapolis? Do they require a license these days? Any recommendations for an Indianapolis based real estate attorney who may be able to help us navigate?  Not asking for legal advice in an internet forum, just information. Thanks in advance!

With this strategy there is no seasoning period due to rate and term: you can refinance right away. You’re very likely not going to get “stuck” because even if prices have started to soften you’re refinancing just a week or so after closing.

That being said, in the case that you couldn’t get the appraisal you needed you’d have to come out of pocket to refinance or sell or restructure your loan.

Bold title I know and I'm sure it's been posted about before but what else do we have to talk about right now? I've done a couple of deals lately using this method which is similar to BRRRR with one important distinction: I'm not remodeling the properties. If you can find a move-in ready property to buy at a good enough discount then you don't have to improve the value to get your money back out. The trick is to purchase (including closing costs) at 80% or less of what it will appraise for, get a loan to cover 100% of purchase and costs (a private lender whose trust you've earned is your go-to here), then do a rate and term refinance shortly after purchase. That's it: I've done it twice in the past two months.

Purchase price of 142k and 150k respectively. They appraised for 205ish and 210ish with $0 of repairs/remodel after owning them for less than a month. 2 free houses cash-flowing from day one (they came with tenants).

What makes it better than BRRRR? It's just easier not to manage a remodel, rate and term refinances tend to have a better rate and you can also do them for up to 80% of the appraised value vs 75% which is typical of a cash out.