All Forum Posts by: Nathan W.

Reading this post was a poor INVESTMENT of my time

Hi Wendell. I am glad to see you kept your thread going.  I spent the past couple of weeks reading your other one and gained a ton of knowledge, but more importantly, MOTIVATION to go out and start doing my own deals.  Your thread is a gold mine of great information and I know I am not alone in saying that we are grateful for your openness and thoroughness in this endeavour.

If you don't mind, I have a couple of questions:

1. In your spreadsheet above, where are you accounting for the $5k repair cost in your profit analysis? It doesn't seem to be baked into there anywhere that I can tell.  Is this a wash from the up front payment you charge the renter-buyers, or am I missing it?

2.  I notice your land deal in Washington state has been under your control since at least August of last year.  Do you mind to share how that is structured? I can't wrap my head around why a seller would give you exclusive option on that land, if that is the case, instead of listing with a broker or something along those lines.

Thanks again for all the helpful information!

@Wendell De Guzman

 this was an excellent thread.  I found it a couple weeks ago and bookmarked it to read later and I finally make it through all 26 pages.  You are just absolutely crushing it and I am grateful that you were generous enough to share so much actionable information with the community.

Since you asked for us to tell you how it helped us, I will do so.  First off, it has helped me become extremely motivated as you show the potential for what is out there for those that go and work for it.  Second, I have learned a ton about doing deals with little or no money out of your own pocket, mainly through networking with other like minded investors--everyone has something to bring to the table and it is our job to go find those people and bring them into the deals so it is a win for all involved.  

I'm glad that you decided to keep your updates going and I look forward to keeping up with them in the other thread.

Also, if you are ever looking at the Washington DC market I'd be happy to help contribute with boots on the ground, as a credit partner, or acquisitions guy.  

Curious about this. First, isn't the LLC just a pass through entity? This is at least the case for single member LLCs. Second, even if it weren't, why wouldn't you take the tax break against your corporate entity? It is a legitimate business expense.

That is how I understand it anyway, and my CPA agrees when he does my taxes.

That is a gorgeous house.  For some reason the After pics didn't show up for me on the first page, so when I got to the quote on Page 5, I was blown away!  Very nice.

Can I ask a few questions:

-Do you use mostly the same materials in your flips to make them more scaleable?

-Mostly from Home Depot or do you go to custom stores for special items (tile, cabinets, granite, etc.)?

-Does your HML fund the entire deal (including acquisition and repairs)? Or do you put up some of your company money?

Understand if that last one is too personal I am just very curious at how people are structuring their HML relationships and deals.

Again great job.  Gotta love it when an agent calls you up and offers you a $65k deal!

Brandon Turner has an excellent (and very short) e-book on how he would do it.  I say "would" because I can't remember if it was hypothetical or if it was the actual path he took, but it is a good read, hypothetical or not, to at least get you comfortable with some of the CONCEPTS that can make that a reality.

It is called "7 Years to 7 Figure Wealth" and is available here on the site.  I would link to it if I knew how to do that, but you should be able to search for it.

Hey all, I have a question about the requirement that necessitated 2 years of rental history to be shown before allowing that rental income to qualify for a conventional loan.  I may be misstating this, but I think that is the gist of it. 

I have heard recently that this requirement has become less stringent, and that lenders are qualifying borrowers without a rental history, but only for 75% or so of the rental income.  Is there any truth to this? If so, can you point me towards a source?

My lender has asked his underwriters about it and weren't able to find anything about it in the FNMA and FHLMC guidelines so I am wondering if it is even true.

This is for a conventional loan for a private residence my wife and I are trying to qualify for.  We are putting our current condo up for rent without a rental history.

Thanks

Nate

@Stephanie W. : I actually did not.  The inspection uncovered some undisclosed foundation issues that were going to be around $4500-$5500 from the estimates I got, and the seller wouldn't budge on the price so I walked.  

I was pretty disappointed especially since I have a sneaking suspicion that I was not the first person to find out about them (the current owner bought it in 2011 and it has been on the market for like 8 months).

I'm glad you wrote though because I have been meaning to come back and follow up on this post!

Hey all, I have an opportunity to enter into an owner financed sell of the land I inherited from my Dad when he passed away past year.

It has no structures on it and is listed for $45k (52 acres or so in Southwest Vrginia). Potential buyer asked about seller financing and this looks like a good opportunity to pursue a possible land contract.

Does anyone have suggestions on the best way to structure this? Down payment? Rate? Number of years? Balloon at end?

This fits into my overall strategy of passive income perfectly so I would really like to pursue it, but if anyone thinksits a bad idea I'd appreciate feedback on that as well.

Thanks!

Nate

@Stephanie W. : It's not Section 8 and the tenants are very pleasant and respectful. I had the opportunity to meet them when I was viewing the place. Perhaps I found a winner in the mess. I am not at all concerned about the quality of tenants currently in there. Thanks for your input though.