All Forum Posts by: Tarik Abdullah

@Justin - "A bird in the hand is worth two in the bush" Why use all your cash to pay off debt to ask someone to borrow money? They can always deny you credit for some reason or the other but will never refuse to take your cash. I would buy a house using 70%free and clear that I could comfortably rehab with a little cash reserve left. Then I would put it on the market below market value to sell fast and maybe profit $8,000-$10,000. With this profit I would begin to pay down debt. I would continue this flipping until I paid debt off. Then after the debt is paid off you can go in with the original $150K and get a loan 1)You'll have skin to put in the game and 2) You can show your experience as a real estate investor with the flips that you did. Always pay yourself first!

@Ed Wood - I don't know why I never thought of using some of the investment money I have to clear my credit and then doing the deals without a partner! Also I didn't know they had investment conventional loans they sound like they are extremely hard to get in this 'jump through hoops for finance market'. What kind of stipulations do they usually require along with the 620-640 fico score? ie.. debt to income 40%,Show positive cash flow,must hold the property for a year, things like that.

@Ali Boone - Are you saying any funds I give to my parter would have to stay in his possession for 4-6 months before we can make a move?

Jennifer,

Will you be doing it out of Brooklyn? Where ever you do it remember even though your stratagy is buy and hold you make your money at the purchasing table. Meaning try to purchase with equity already in the property or below market value. Like all the books say "look for the worst house on the best block" that way with a little bit of improvement your ahead of the game. Also, don't make the mistake of leaving out the neighborHOODs that you yourself would not live in. Its about the bottom line cash flow and also I like to improve someone else's quality of life in the process. Why buy a house for $140,000 and get $800 dollars rent when you can buy 4 houses at $35,000 and get $550 each ($2200). Sure the $140,000 home will probably have greater resell value or sell faster but your goal is to hold, your not worried too much about resell value!

I have two rental properties free and clear of any mortages or liens with a combined value of $90,000. My problem is poor or "slow" credit. I have found a family member with better credit (750) that is willing to partner with me, he uses his credit or good name and I put up my properties. What kind of lender should we be looking for that would get us the best interest rate, on money, to fund our fix and flip deals?

Thanks for responding guys! @Steve - My intentions were not to deceive any lenders or do anything illegal. I was thinking more on the lines of when a couple get divorced one of them sometimes buys the other out thats simply what I was aiming to do. The properties are in both of our names, I was going to get a mortgage just in my name (which alone I would qualify for) and be solely responsible for the acquired mortgage. Is that illegal, if we are still married? Am I not allowed to own property without my wifes name on it? If so please tell.

I have 2 houses paid in full with no liens or mortgages and two more that need to be rehabbed. I'm holding all 4 properties for passive income. I would like to use the two houses that are fixed to fund my flips. What do you guys think? I was thinking I could qualify for a mortgage and "buy" the houses from myself and my wife. Would that be considered a first mortgage? or Would it be considered a refinance to just pull the equity out even if I don't have an existing mortgage on it. I'm using one of the homes for my primary residence. My credit is poor/fair. Any advice or suggestions would be greatly appreciated.