All Forum Posts by: Michael Dunn

Ned Carey ,

That's a great idea regarding Wholesaling this, and other properties .   I have heard of Wholesaling, but am not to familiar with the In and Outs of it ........  How do I actually " WholeSale " it ?    Won't I have to purchase the Property first , before I can then wholesale it to an Investor ?

And I am planning to do virtually all of the work myself, as I am a Contractor by Profession .  So i can do the work, it's just doing it in bits and pieces , as the money comes in from work to do so.   Main thing would be the Roof first .  

Thank you again 

How do LTVs work on HELOC's , if your current Primary Residence was purchased with an FHA loan ?

Meaning ...... can you get a HELOC based on a higher LTV than 80% ?

is 90% possible ?

Thank you 

Hi Ned Carey ,

My only " Logic " with Just having enough money to Buy the Property , but have NO $ eft over to do any repairs to it ( which it definitely needs ).... about $15,000 worth , is that ...... The ARV will be around $110,000 - $120,000

So It has great potential for Instant Equity , and Plus ..... It has Two Units. ..... a 400 sqft.  seperated from the main house section ( that has a Kitchen, Bath and 1 Bedroom with Living Room )  So I could rent both the 400 sqft. unit and the Main House out .  Hard to pass this up , even if I have to fix a little here and a ittle there , as I get Extra $ from working 

Your Thoughts Please ??

Thank you Mark,  this is one of two SkipTrace services I have heard of .  The other is .....  USA-PeopleSearch.com

Have you heard of them ?

And with TLO ...... Will this give me any Phone Numbers on Record, so long as I ave a person's First and Last name ?  Thanks again 

Literally looked through Every available Record on the Counties Website for a Phone Number, and even called and talked to the People who work in the .... Chancery Clerk and Tax Accessor's Offices , And still having no luck 

I know the First and Last name(s) of the Owner's, but neither has been living there for over a Year, and the Properties are both vaccant and distressed 

I am Going to do the Envelope thing, recommended via " The Driving for Dollars " where I put the most previous known Owner's Name and Address on the envelope , as well as a Picture of the actual Property on and in the Envelope 

I did look through the Mailbox, and saw that there was some mail with 2 Other People's names on some of the mail , that are NOT the Original/Known previous Owner(s) , BUT the Address of the Property is on the Mail with these other two People's name, that is on some of the mail in the MailBox

Could these be the Absentee Owner's ?

Likely a Child or Grandchild ?

QUESTION:

1. I looked up the 2 people who are on some of the mail, and couldn't find any Information ( NO Address or Phone Number's ), but yet I do have their names via their names being on some of the mail, with the EXACT Address of the Property that I'm Interested in

Can someone please recommend how to Contact and or find out who to Contact, and HOW TO find the Phone Number(s) of the Person(s) who have Authority on whether or not to sell the Property, aka the Trustee(s) ?

Thanks so much, I'm really at a loss here, on how to find out WHO to call and how to find their Phone Number 

Should I use a Reverse Phone Look up type Service ?  Are these Realiable for getting Current and Accurate phone numbers ?

Thanks much 

I just want to run by my current financial situation, and get other's thoughts on what I can Expect to hear from my Lender tomorrow ..... More than likely 

My Situation:

I can not qualify for another loan ( Investment Loan ) , do to my DTI already being around 33 , and the Max being 45

So qualifying and getting approved for a $50,000 loan is a no go ( I was told this, from two different Portfolio Lenders in my area )

Soooo, this Leaves me at Looking to ( Most Likely ) get a HELOC via the Equity from my Primary

I'm assuming a LTV of 80% for the HELOC , which would give me around $22,000

Now, with $22,000 , this kind of puts me in a quandry, in that I really can't buy an Investment Property outright 

Well, I MAY be able to qualify for upwards of $26,000 - $28,000 IF I use my VA loan, to refi into , as I can get a Higher LTV with the VA

The reason i say a MAX of $26,000 - $28,000 , is that I can't qualify for more than this amount ( Even though I have $40,000 of Equity ) in my Primary .... Due to my Income , and the MAX on the DTI at 45% ,..... $26,000 - $28,000 is looking like the most I'll be able to get

I may then can do something with this amount , as there are a few Very Distressed properties in my area that I have been keeping an Eye on ..... Once I know I have access to the Cash at any time I need it via a HELOC, I'm going to submit in the Owners Mailboxes , the " Cover Letter " as mentioned in the " Driving for Dollars " thread , that is here on BiggerPockets.

If I can qualify for say $27,000 , and use the $6,000 in cash that I have saved up ...... I may can get this Property for $30,000 ( an ALL-Cash ) deal to the Owner(s) , which will hopefully look appealing to them, since this property has been vaccant and in a Distressed state for over a year now .  I can Put in the Letter.... " I can Offer you an all Cash Offer, which means , No:  Realtor commissions, no repairs and no closing costs "

Then use the Other $2,000 for an Appraisal on my Primary to get the HELOC , and the Closing Costs ( $1,000 or so ) ? Or is there NO Closing Costs with a HELOC ?

Just wanted to share what I'm going to run by my Lender tomorrow , but wanted to get other Member's advice and take on what I can expect to Hear , when I call Lender tomorrow

Thanks so much 

Joe, great information.  thank you so much 

Robert Smith ,

Thank you too for your reply, much appreciated

I never knew or even though that if I use my VA loan to purchase my Next Primary in say Jan. of 2017 , that I can then refi it into a Conventional loan, and by doing so .... " Free up " my entitlement , of which I can use again to purchase another Primary with my VA loan

QUESTIONS please.....

1. How soon after you purchase a Primary using the VA loan can you refi. it into a Conventional mortgage ?

2. Does your second Property that you use your VA loan to purchase HAVE TO be MORE THAN the last property that you purchased using the VA Loan , or does it not matter ?

THans so much for the help, Really appreciate it 

Rod Hanks,

Thank you for your reply.

Am I understanding it correctly, that if I pay off the $5,000 in Credit Card debts that I currently have ( the minimums of both combined per month is $100 ) 

So would paying down this $5,000 " Give " me in Theory .....  about another $20,000 that I could qualify for, via a Loan from Portfolio Lender ?

And if I went with a Conventional loan to refi. into at 80% LTV ( vs using my VA loan to refi. into ), this would give me abut 20,000 that I would have to use towards Investment Properties....... I could use $7,000 of it to pay 20% down on a $35,000 property + $1,000 or so for Closing ( if I DON'T go with a HELOC ) and use the other $12,000 for repairs on the Property ?

Currently though, I only qualify for a $25,000 loan via what both Portfolio Lenders told me due to my current DTI ........ Given the forementioned scenario(s) , how would you advise me, on how best to use what I have at m disposal to pursue this Property ?

So Basically, I can Only Qualify for an Increase in my Mortgage of around $180 ?

Here is my Understanding of how this Deal " Might " be able to work ( please correct me if I'm wrong ) ....... I do a HELOC for $20,000 of the $40,000 I have in Equity

I put 20% down on a Purchase price of $32,000 for the Property = $7,000

Closing Costs = $1,000

Appraisal = $1000 ( for both my Primary and the Investment property I'm wanting to buy ) 

This leaves me out of the $20,000 ..... $11,000 of which I can use to Repair and Renovate the Property 

The Portfolio Lender will then Lend me the Other $25,000 that I need to purchase the Property 

And this All has to Keep my Note from going up over $180 a Month .... Possible ? 

Thanks so much for all of the Help ...... Can't Thank everyone enough 

Can someone please help in answering on whether you can get up to 100% of the Equity out of your Primary via a HELOC ?

Is using a VA loan refi. the only way to get the full 100% ?

Thanks so much