All Forum Posts by: Nathan Grabau

This depends on your loan to value ratio and whether you want to have to refinance. Generally speaking you can get 70-80% of a properties value back out of it pretty easily with cash out refinances and helocs. That being said, helocs are harder on investment properties and cash out refi's require you to refi the whole loan, not just the equity you are trying to get out. 

Have you seen the property? It should be pretty obvious, even from pictures if it is 2800 sqft or 1400 sqft. 

Generally speaking, county assessors tend to be hit or miss with the data they have, especially in older homes, so which one is right is probably a crap shoot.

In CO, we have seller disclosure laws that require us to share how we determined the square footage. Can you just have your realtor call the listing agent and ask them for clarification on this? 

Quote from @Sarah Irizarry:

I just finished the WREIN training this week and got on their 'qualification' call for the mentorship program. Yes, it is 20k, feels like too much $$ right now. I am in CO and would love to get started with wholesales build some cash and move on to BRRR. I want to jump in to do this but want a mentor. Anyone else that could mentor me on wholesaling in Northern Colorado?

 Hi Sarah, I am a NoCo Reatlor and investor. While I cannot offer much on the wholesaler experience front, as you are creating your buyers list, please add me!

This is the correct range for an investment property conventional loan. I expect 30 year owner occupied rates plus 1.5% for conventional investment loans. Historically I have been able to find local banks that are able to beat conventional rates for investments, but secondary financing markets are currently struggling. 

This is a situation where you see it as a win that you can collect that rent now, and that you caught it as a 2300 issue, vs 23k or even 230k. 

Quote from @Devin Anderson:

Quote from @Nathan Grabau:

Hi Devin? What are you looking to do? Do you want to stay in your market? I would always recommend house hacking to get started!

If you want to look at other markets we are seeing great buying opportunities in Colorado that is a little bit more of a balanced market than LA is. I also invest in Ames, Iowa and love my team there if you are looking for a more cash flow heavy market. Happy to introduce you to agents I know where ever you are looking! 

I'm not married to the idea of staying in my market; I'm also not privy to long distancing investing. Would you recommend that for someone's first deal?

I think if you can get into your LA market in any way you should. Even at 1m with 3.5% down(FHA) which is 35k, you can only get 140-175k(20-25% down) in an out of state market. 

If you assume equal appreciation at 3% the 1m upside is so much greater, and that is before you compare a market like Detroit's appreciation to LA's over the last 50 years. 

You might get a couple hundred bucks of cash flow with 35k down on a cash flow market property, but that is your reward. Compare that to 3% of 1m(30k a year, 2.5k a month) of appreciation and you will blow the out of state market out of the water. 

That being said, if you are going to invest out of state, you should in Ames, Iowa with the guys I used. It is the best market I have found for cash flow, and I use it to balance my more aggressive appreciation properties. 

But for a first property, I would house hack, in LA. 

Hi Devin? What are you looking to do? Do you want to stay in your market? I would always recommend house hacking to get started!

If you want to look at other markets we are seeing great buying opportunities in Colorado that is a little bit more of a balanced market than LA is. I also invest in Ames, Iowa and love my team there if you are looking for a more cash flow heavy market. Happy to introduce you to agents I know where ever you are looking! 

I think this is as good of a buying opportunity as we are going to get. I am a NoCo REALTOR and we are starting to see a dramatic uptick in buyer activity ie multiple offers and high open house traffic. 

I think they key with a purchase today is it needs to break even, and be in a strong market, and then you say what happens if I refi at 1 or 2% lower 12-24 months from now?

I would open a Chase business account and get a check reader for your desk. It essentially allows you to deposit all of these easily without having to go to the bank. 

Other banks might have this, but I know Chase does this and it makes our life easier! 

I would modify your offer and say you want more time. This should be amendable for any contract and any contract that it is not amendable for whatever reason, you should not sign.