All Forum Posts by: Keishee Hill

@Andrew Bondarchuk 

You would still have your "skin in the game" and won't have to dip in your 401k if you find the right property and run your numbers.

For example, let's say you find a house for $50k that has $20k worth of repairs and the ARV is $115k. You would get a loan for $40k and your investor (family or friend) gives you $30k (down payment and repairs). Then when you sale the house for $115k, it will pay off the $40k loan, you would pay the investor $33k (their investment plus 10%) and then you will walk away with $42k. Then you can use that $42k for your next deal or however you want to use it.

Obviously, this is a very simple situation. Time management is very important and you will have to factor in mortgage payments, utility payments, etc while you are rehabbing the place.

I am not in Detroit (however, I do go out there a occasionally since my husband is from there), but nowadays with email, google docs, FaceTime, you can work with almost everyone anywhere. PM me and let me know how I can help.

I think all of those sound like great ideas. 

Except for the first one, they all seem time consuming. And working full time, raising kids, and investing in real estate will already take up if not all, but most of your time. 

I would suggestion the following. They do not require you to put more hours in the day doing something else and you would get the funds for your first deal quicker.

1. Ask family and friends if they are interested investing in real estate. You can provide them a 10-12% return on their money, which is a higher return then a saving account or a 401k right now. If they give you the down payment and/or rehab cost, you can offer second lien on the property (you will set up a notes payable with them) and you would agree to pay them back plus the agreed upon interest when sold or a year after the property is purchase, which ever is the least amount of time. If in a year, you have not sold the place or decide to keep the place and rent it out, you can refinance the mortgage and get a cash out and pay your investor out. They would most likely want to invest with you again since they did not have to do any work to get additional 10-12% return on their money. (I would suggest that this transaction go through the title company if you are setting up a second lien on the property. (Do not exchange cash between each other.) That way they have some guarantee that they do have a lien, and once you have paid then note off, you have guarantee that they no longer have a lien on the property).

2.Pair up with one or two are investors to do your first couple of jobs. That way the down payment will be less because you are splitting it between more people.

3.You can ask for seller finance.

Thanks @Brie Schmidt for the referral. @Chris Seveney what I was PM'ing @Michael Barbari is that this is not a true non-owner occupied. I live in the place and this is my primary residence. My name is on the title and mortgage. I am trying to add my mom as co-applicant; she is on the title and mortgage as well, but she lives in a different state and has her own primary residence. So when I apply with the mortgage broker, they say this will not be a problem and puts the application as primary resident. But then when it goes to the underwriter, they change it to non-owner occupied because my mom is on it and then denies the application. 

On a side note: I am willing to go lower than 90% (between 80%-90%), I am just trying to get the highest amount of line of credit so I have wiggle room. But I do not plan to initially use of it.

Can anyone recommend a bank or mortgage company that will do a HELCO for a non-owner occupied property at a 90% LTV? I also need them to be authorize to do HELCO in Illinois.

PNC, US Bank, and First Merit do not do these.

Wells Fargo only does up to 75% LTV.

It would be hard to get a bank to go into contract with a buyer who is leaving the option to reassign the contract. Banks also require a large amount in earnest money. 

However, if you did decide to wholesale foreclosures, the best way would be to use a bridge lender and then sell the house after you acquire the property. Therefore, you would carry more liability then if you were just wholesaling houses from a distressed owner.

Most likely the bank is not going to give you money back since they are already losing money on the foreclosure. And conventional loans only loan up to 80-85% of the LTV for investment properties. I would suggest looking into FHA 203k loan and hard money lender. Both you can get money for the purchase and then have money for the rehab. Another option is to get a home improvement line of credit for the rehab portion, which would be separate from your purchase loan.

Join some real estate investment groups in your area. Usually you will find some wholesalers there that are trying to find buyers to add to their list.

This app is funky. For some reason it says the name is attached but I do not see the link to the person's name. Does anyone know if I am able to link someone's name in the app?

@Upen Patel ,I just have a follow up question. What type of things should I be looking for in a landlord insurance policy? You said that not all of them are the same, so what exactly is missing from some that is a must have.