All Forum Posts by: Lee S.

@Greg S. admittedly I didn't speak to any of these lenders directly, I was scanning websites and calling on Owner Occupied.

Based on the info listed on the website, this one seems to fit your criteria:  https://www.golden1.com/Loans/HomeEquity

I just met with an old time investor in my town looking to start selling his properties and retire, he is 72.  He makes 10k a month and hasn't raised rents in decades on some of them, owns 12 currently.  He has also made massive appreciation on all of them.  Yeah, I would say it works.  I have 2 now that I bought below market value, rehabbed, then refinanced all my money out (2nd refinance in process).  I have 35-40% equity in one and will have 25-30% equity in the other.  My wife has a high w2 wage while I do the investing full time (I'm a "retired" young chiropractor). I also do stock/options trading. 

I don't swing a hammer, I assisted on the first one on average a few hours a week to learn the process, time and costs of doing a rehab so I would be better at estimating the next, time well spent.  I barely touched the 2nd property and don't plan to touch houses moving forward.  I will only buy houses that I can use this strategy on that are A-B houses in good locations that I know I can sell to a home owner, not an investor, in the future If I decide to sell.  Good luck doing that with most turn keys.

I'm able to roll cash flow right back into the business since I don't need it. I think 20 paid off houses is my goal, this will allow my family to live the lifestyle we like with 20-30k a month cash flow. There are very few large apartment complexes in my area and not many 2-4 units either, almost entirely SFR. I would not want to deal with 90% of the people that rent anything other than a nice SFR in my area anyways. We have a major house shortage and the line has been 20 people deep with great applicants for my houses. I know if I have to replace tenants after first year I will be able to raise rents. There are currently ~5 rentals available in the entire county, most rentals I see come available look like they haven't been touched since the 70's either.

I'm hoping to turn my current primary home into a rental in the next 1-2 years also.  It's an A property that will cash flow 1k a month (3.25% interest rate bought at the bottom of the market as a short sale) that we should be able to keep rented with Doctors and Nurses.  We are as close as can be to the local hospital and my wife is a director there.

Figure out what works in your area.  I've said this before, I cringe every time I see a California investor wanting to buy turn key's in the mid west but whatever, good luck with that.

it is weird how so many people's first post is to back up a guru or education.  Doesn't make any sense, if the education is so fantastic why are they hanging out on a real estate education site?  Hmmm.  

I'm not implying the education is bad by the way, never seen the material.

yes, you guys are correct on the monthly payment.  My goal was to unlock as much equity as possible, the monthly payment isn't an issue because I only use it short term (3-6 mos).

I can't remember the 80% ltv NOO heloc lenders, I was focusing on OO during my search and only made mental notes that the 80% was available.

It's not that difficult to find, I know I focused almost exclusively on credit unions, so look there first.

That doesn't sound right.  Let us know what they say once you talk to them.

@Chad C. you would have to ask them but if it's a yes I think I deserve a referral fee!  I'll take a nice bottle of red, thanks.

In the end however what is "right" is subjective, disregarding legalities of course.  This is how capitalism works, supply and demand.

It's a new guru tactic for wholesalers to send the properties out to agents and tell them to tack on their commission if they bring a buyer.  I've tried contacting every wholesaler I can in my area, all seem to talk a big game but none has even presented me with a single property yet.  I'm licensed and doing my own marketing for flips and holds etc.

Just stick with it, and never believe you can't invest locally.  Once you get that first deal done everything changes.  I dabbled off and on for years with no real commitment until this last 18 months.  I'm like a pitbull now, no fear.  I've knocked on foreclosure doors, skip tracing vacants, direct mail, harassing no good wholesalers that have no clue what a deal is, spoke with many lenders to know what is available if needed, Whatever it takes.  

Don't compare your success to people that are not in your area either.  Seems any knuckle head can walk down the street in the Midwest and buy a ghetto house anytime they want.  I don't compare myself to them because I have no interest in that type of investing.

Everything has a price, I wouldn't run away from it just yet.  Ask him if he will sign a contract that is contingent on HIM getting rid of the dead beats.  If not, look into local eviction laws and figure out cost/time and factor that into your costs.  Get a contractor to look at it and get it under contract then wholesale if necessary.  Be honest with the owner and tel him what you are doing, he won't care and will appreciate the honesty.

I don't get "not being the bad guy"either, might as well hang a sign on your forehead that says "please take advantage of me, I'm insecure and just want people to like me" because only a low life is going to live off of someone else like this.  I met a local old investor a week ago with multiple properties that he hasn't raised the rent on in 20 years.  He wants to sell but doesn't want his renters kicked out.  I told him they never will move due to their 1980's rent, I'm not interested.  Its not my job to financially support other adults, sorry.