All Forum Posts by: Ken Morton

Hi. From what I have heard and read if you get the property at at great deal 75% of ARV with a HML you can fix it up and rent it out then refinance with a traditional 30 yr loan and pay the HML off and hopefully cashflow. Basically a BRRRR. I'm learning but if you find a great deal I wouldn't be scared of HML.

@Stephanie P. Thank you for your response.  I am just trying to find some kind of advantage in this hot market.  

Investment Info:

Condo fix & flip investment in Woodside.

Purchase price: $249,000
Cash invested: $25,000

Bought primary residence 10 years ago. Listing for sale now. Going to use proceeds from sale to invest in real estate or take out HELOC if it doesn't sell.

How did you finance this deal?

traditional financing

How did you add value to the deal?

renovating kitchen bathroom and living room.

What was the outcome?

selling for 390k

Lessons learned? Challenges?

dont buy a co-op if you want to get in and out fast?

I had the same question. I am trying to buy a primary residence in a hot market where things are getting multiple bids and selling in like 4 days. I am trying to figure out a creative way to finance for my primary. I was thinking that if we used hard money to be able to offer cash and just swallow the extra interest we will be paying to HML for the 3-6 months until we can refinance into a traditional loan to get the house we want in the are we want. What do you guys think. I have not looked into all the terms and laws behind this but I am looking for a creative way to get an advantage in a hot market. thank you.

Wow thanks for the replies guys this outlet is so good to have!  All very interesting and some I hadn’t thought of. I need to research some of the subjects / techniques mentioned here to get a better understanding of them and get back to you. Talk soon. 

Investment Info:

Condo buy & hold investment in Woodside.

Purchase price: $225k
Cash invested: $33k
Sale price: $400k

Bought primary residence 10 years ago. Listing for sale/rent now. Going to use proceeds from sale to invest in more real estate or take out Heloc if it doesn’t sell.

What made you interested in investing in this type of deal?

I knew it would gain value. Used as primary residence.

How did you find this deal and how did you negotiate it?

Mls

How did you finance this deal?

Cash down payment. Conventional loan.

How did you add value to the deal?

Fixing up. Remodeled kitchen. Paint. Resurfacing walls. Restored grout. Enlarged closets.

What was the outcome?

On market now for sale/rent. It is a coop so I can only rent for 4 years.

Lessons learned? Challenges?

Probably wouldn’t buy a coop again. Board approval could take months. I would have taken out heloc earlier and invested in something else.

Hello BP! I am currently putting my primary residence for sale or rent in Sunnyside Queens NYC I have about 175k in equity. There are two lots in Texas I want to buy near my mom's place 35k for both. I want to eventually build in them in next 5 years. I have cash for down payment. I'm trying to figure out financing for rest. Should I try and find a lender in Austin Texas that would finance 27k loan for two lots? Or pull from 401k? Or HELOC even though its on the market. Any input would be greatly appreciated. Thank you.