All Forum Posts by: Nghi Le

@Jonathon Thompson Can you give us more insight on why your rentals can't be refinanced?  Does it have to do with your ability to qualify for loans?  If so, there are different loan products that may be able to overcome that.  If you don't want it on a public forum, feel free to send me a PM if you want my thoughts on it.

It's pretty common to do the BRRRR strategy using hard money to purchase the properties, but it seems like you're already familiar with that. However, hard money can be cheaper if you do a cash-out refi on a property you already own to pull out cash to buy another property, as opposed to putting the hard money loan on the property that you're planning to purchase. I mention this because it seems like the $30k is one of your bigger limiting factors right now. But it also depends on the price points in your market.

@Steve Graves I don't think I've ever had a hard money lender treat me the same as a bank :-)

25% down is pretty rough for hard money.  Even for first timers, I'm seeing 10-20% down.  Especially if you're from the west coast, where the most competitive hard money products exist.

Also, you can get an FHA or conventional loan on a property that needs work. The 203k loan still exists (with 3.5% down) and there's also the HomeStyle renovation loan, both of which are conventional loan products that finance the rehab. That said, these loans are still a headache to get.

It's hard to find good deals to flip on the MLS. Most flippers tend to buy off-market, whether through their own marketing or through wholesalers. Or sometimes their real estate agent is well-connected to bring them these leads as well.

Go to local meetups in the area and network for deals.  There's not that many real estate meetups in Snohomish county (much more in King and Pierce), but if you're able to make it to one of Tarl Yarber's Fixated evening meetups in Bellevue, I think it'll be worth your time.

You mentioned you were getting a HELOC on your current project? What condition is that current project currently in? i.e. has it already been fully renovated? Is it a property you're living in?

I ask because it may be cheaper to get a hard money loan on the current house than to buy the new one with hard money.  Depending on the LTVs, you can get a cash-out refi on the current project with rates in the 7's for a 1-2 year hard money loan.  The purchase would probably be in the 8's if you're looking for that high leverage.

This is assuming you don't currently have a conventional loan on the current property already. If it's not free and clear, a hard money cash-out refi doesn't make much sense (and the HELOC in 2nd position makes a lot more sense). If you need to close a little faster with a HELOC, I have a contact at BECU that has gotten HELOCs done within 2 weeks.

What area is this property in?  A $100k purchase in King or Pierce county seems to suggest a manufactured/mobile home.

If they need some cash now and you need some time to figure out your financing for the entire purchase, a lease option may also work (instead of seller financing), and you can give them some money up front as a deposit to help with their cash needs.

No. It wasn't a conventional loan, so different rules apply. Essentially a loan directly to my LLC.

@Andrew Tabalbag That is disappointing.  It's been a busy month for a lot of escrow companies right now.  They do take active transactions/deals much more seriously.  I'd suggest asking someone who has an existing relationship with an escrow officer to make an introduction vs randomly calling/e-mailing them.

But if you're just planning to have an assignment contract in addition to a PSA, you should be fine with most escrow companies. Beth's recommendation works well with double-closings too I believe, which most escrow companies are not friendly to. But most people don't do double-closings here in WA due to the excise tax; a more common strategy is to just "sell" an LLC that has the property tied up.

I just did a cash-out refi on my property in Renton, WA, which is under a trust owned by an LLC, into a 30-yr loan at 4.75% fixed interest rate. Not a conventional loan, so no limit on number of loans, and they're available in 45 states. Minimal paperwork; didn't have to submit any tax returns, pay stubs, etc. They'll go up to 80% LTV but I didn't need it (plus the rate would have been 0.5% higher). Loan was based on cashflow of the property, which was nice since I had just raised my rents. Closed in about 2-3 weeks.

Feel free to PM if you want their contact info.

I live in Burien / White Center, not too far from you.

I feel like there must be something more to what you're asking, because most escrow companies I've worked with, both as an investor and a lender, handle wholesale transactions just fine.  We've probably worked with over 30 different ones in King and Pierce county over the past year.

Is there something complex or specific that you're looking for your wholesale transactions?  i.e. what are you trying to do?

I'll give a rep to my main escrow company, First American Title in Seattle.  Look for Sara Levien.

The short answer is immediately, if you're looking to put another conventional loan on it.  You've already owned it for 2 years.  The minimum seasoning period to use as-is value is 6 months.

Why not just do a cash-out refi now in order to pull out some money so you can finish your rehab? Even though it hasn't reached its full ARV potential, I'm guessing it's still worth more than when you purchased it, maybe somewhere between $150k to $200k?

Unless the property is in worse condition now than it was when you bought it, to the point that it's not financiable with a traditional loan?

I wouldn't necessarily recommend the credit card route.  You may mess up your utilization and hurt your credit scores, thus screwing yourself up for the eventual refi.  Whether you refi with a traditional or non-QM loan, all long-term loans are going to be based on credit score.

I have a property in St. Louis that we just completed renovations on and am looking to place a lease-option tenant buyer there.  I've done a couple lease options here in WA state and am familiar with the process and the contracts, but doing this locally is different than remote.  Mainly looking for someone who understands lease options very well and can market it and find a good tenant-buyer.

@Keegan Burmark Keep in mind that during financial crashes LOCs tend to get frozen.  So you essentially won't be able to access your HELOCs.  That's what happened during the last crash.  The best way to ensure that you'll be ready in a crash is to have actual cash on hand.