All Forum Posts by: Logan Drew

 Hi Ludmila:

What do you expect your entry point to be (purchase price)? What do you expect the exit to be?  And how much do you expect you'll need for construction?  Feel free to PM me.

 Welcome to BP Anthony!  There are tons of great resources here in the members and in the tools available.  The fact that you are jumping on BP at the onset of your career speaks volumes to your awareness and drive.  Good luck to you!  Work hard and you will succeed.

Pittsburgh, PA deal.  1811 Maine Ave, West Mifflin, PA 15122.  Listed at $129,900 under the assumption a few more items would be finished, but will look at wholesale-type offers at lower levels.

Contact me directly (or Tony the listing agent and tell him you saw the property on BP from Logan the owner).  I am 50% owner and can speak directly with anyone interested.  Buy now around $105k, sell right away at $130k after about $5k of work that can be completed over a weekend.

It is true that if you are buying a HomePath property as an owner occupant, you must sign the occupancy cert/ disclosure(s).  I believe you can buy a HomePath property as an investor after the 'First Look' period though.  Please see this excerpt from the Fannie Mae website.

• First Look is typically the first 20 days a property is listed on HomePath.com (Nevada is 30 days).
• Properties in the First Look period have a countdown clock on the property information page of HomePath.com displaying the days remaining to purchase.
• Eligible buyers during First Look are owner occupants*, public entities and their partners, and some non profits.

Investor offers submitted after the First Look period expires will be considered along with all other offers.

As, @Kim Knox stated, I would strong advise against someone saying they will be an owner occupant if that is not their true intention.  Doing so would be committing a type of fraud.

You are planning to go 'behind' her existing 1st TD, correct?  I would reach out to a reputable title/ settlement service company in your area to see if they have anyone that can facilitate the docs for you (and then refer to them for the title work).  Naturally, there is a fee, but well worth it.  You can seek out a real estate attorney as well, which I would always say is a great idea.  Again, fees involved, but well worth it.

Usually hard money lenders will cap you at 70%-80% of the purchase price. You will also find hard money lenders who will fund your full acquisition and up to 85% of your total cost to complete a project (usually up to 65% of ARV). That said, these types of deals are easier to fund once you have a proven track record. You can achieve them as a first deal though and usually will see them in two phases. The first phase has you acquiring the property and the second phase funds your project after you have plans completed and permits pulled. You will need to have some skin in the game in almost every single instance though.

When using hard money, you can come up with the down payment by any means necessary.  Most people will have it saved from working or other sources or will team up with one or more like-minded partners who will combine forces and share in the profits from a project.

I will say that it is very dangerous to go into using hard money to flip homes if you don't have funds set aside to complete your rehab as quickly as possible.  Carrying costs for hard money loans can take a large chunk of your margin and can sometimes turn good deals into losers because of poor budgeting or planning.

In the end, if you spend time to plan and budget accurately and you choose deals that have very good entry points, you can be very successful with minimal funds in the bank.

Joint bank account...

FHA guidelines require the owner-occupant live in the property for 12 mos after closing an FHA loan (as owner-occupied). That said, it's more of an ethical question than a legal one sometimes as I don't think HUD will notice if someone used an FHA loan to buy a home and moves on to something else in 6 months. I would, however, plan to abide by the laws/ guidelines in place. You do certify you will live in the home/ unit for 12 months when you use an FHA loan to obtain a property.

If your goal is to acquire a distressed/ dilapidated asset and improve it and your entry is well below the current market value of the asset, you could very well utilize hard/ private money to get in for less than 15% down. Other than that, if your goal is to buy something that is more or less turnkey or is at its peak as far as value and use, you will probably need 15% at minimum, but most conventional lenders will cap you at 20% down for SFR's and 25% down for 2-4 units as was stated in a previous post.

What is your goal?  Simply buying and holding something as a rental?  Or are you referring to an 'investment property' as something you will acquire, improve, and resell in the short-term (flip)?  These two different general goals will have different best case financing options attached them due to the nature of the deals themselves...

What do you consider a decent rate?  What is your expectation?