All Forum Posts by: Mohamad Suleiman

Wait, if I am understanding this correctly, I can just not worry about an LLC (for now), purchase the property up front under my name, and refinance it with a conventional bank. Can I refinance a home if I own it out right?

I am saying to give myself a loan. Here are s me reasons that I would do it: - I *only* have 100k that I reserve for REI. i.e. I have limited capital and want to stretch it a bit by leveraging. Instead of a single 100k property, I can have 5 100k properties w/ 20% equity in each. - I can claim a loss for Super Awesome, LLC at the end of the year (pay less taxes)

Hello, friends!

I am interested in buying homes wholesale, but I want to do a conventional mortgage. Since purchasing wholesale is nearly impossible with a conventional mortgage, I need to pay for the property up front (via a hard money lender), then refinance as a conventional mortgage. The question I have is, can I be my own bank/hard money lender? For example:

Super Awesome, LLC is a hypothetical entity I own with some cash in it's bank account.

I find a home for 100k and issue myself a loan (from Super Awesome LLC) to buy the property. I am the buyer, Super Awesome LLC is the lender.

Once the property is mine, I want to refinance with a conventional loan. The bank can pay back Super Awesome, LLC the loan and restart the cycle for property # 2.

The ultimate purpose is that I want to recycle the money that is in Super Awesome, LLC to keep buying home at wholesale price + refinance with a conventional mortgage.

Is this possible/legal?

Thanks!

Mohamad

Can you send me more information on this property? I'm an investor from California who is interested in the DFW area. Thanks, Mohamad

I ended up passing on this house. Was not worth the risk, given that I will not be able to see the property myself. Thanks everyone for your help and advice!

Originally posted by @Patrick Liska:

1.4 is 1 3/4" for the garage - which probably doesn't have much of a footing under it ( most garages don't). - .3 is 5/8" and. 1 is 1/8". That is not a lot to be out of level and have worked on houses with far more of a difference that have been standing for over 100 years ( 3" or more out of level) - I don't think that is anything major to worry about

Thanks, Patrick. Much appreciated. It looks like the work has been done and shouldn't be an issue. Plus, the work that was done has a lifetime warranty on the work they did which makes me feel better.

The last thing that I am wondering about is the condition of the roof. It is 15 years old, so it may need replacing or at least some repair.

Hi pro members!

There's a home that caught my attention and the numbers seem to add up well for me, my realtor sent me the foundation inspection paperwork for the property. 

From the paperwork that I received (from a structural/mechanical engineering consultant), it seems that there was foundation work done to level the home and the final leveling of the house ranges from -1.4-0 in the garage and -0.3-0.1 in the home itself.

The opinion of the company that did the foundation inspection is that the property is satisfactory and meets 2012 IRC building codes. They also said if the home owner would like the floors closer to level, Ardex or a two part high strength self-leveling epoxy can be used for fine leveling. Repair all interior and exterior cracks so they do not get worse.

I'm not an expert on this so I am hoping to get some answers to my questions if I purchase the home:

Will I need to do extra foundation work myself if I purchase?

What type of maintenance work is expected for the next 5, 10, and 15 years (I plan to buy and hold)?

This home is the the DFW area, specifically in Garland, TX.

Thanks!

So it seems like everyone is really pressing me on finding something locally, so I have done some research and the most suitable location for me right now seems like Modesto, CA. It's about 1.5 hours from me, and the property values are not too high (yet).

So I guess right now I Should be studying that market, visiting the neighborhoods that I am interested in, then find a realtor/contractors.

Have you guys had success managing properties that were 1.5 hours away or do I need to hire a property manager?

Thanks!

Thank you everyone for you replies, this information is very useful.

The last part of my question(s) were not answered: Should I be looking into Auction.com or REO's for lower priced homes? Or is there someone else I should be looking?

Thanks!

Alberto Camacho how much reserve cash should I have in addition to the money needed to squire the home (down payment, closing coasts, taxes, inspection, etc.). Is there a particular reason I should be looking at 3/2/2's vs. something smaller? Looking strictly at Garland, the lowest 3/2/2 goes for about 130k. Any other cities your recommend I look at in the DFW region that would be good for a real estate investor? Chris S. Where do I go to find these reliable contractors? Is a site like thumbtack.com reliable for that kind of thing? Thanks everyone for the helpful replies, they're very much appreciated!