All Forum Posts by: Nghi Le

Only liens junior to the foreclosing lien gets wiped out. For example, if there are three lenders on a property, and the lender in 2nd position initiates the foreclosure, then the final result is that the 2nd and 3rd lien clears, but the 1st lien still stays in place. There are many stories at the auction of people thinking they got a steal buying a $500k property for $50k, then realizing that they bought the 2nd with the 1st still in place.

The auction is the riskiest way to buy a property because there is no title insurance. And there are no deals at the auction these days in the Greater Seattle Area; usually the winning bidder is not a winner, but someone who didn't have all the information or was misled.

You asked what's the point of a foreclosure. It's so someone can get paid off (but a winning bid) or to take possession of the property (if no one bids).

These days, the Greater Seattle Area has an average of 3 real estate meetups per night, but what about those who can't attend evening meetups due to work schedule, family obligations, etc? Then this is the perfect meetup for you!

There are no speakers or pitching, just pure networking. Whether you're working a day job in the area or are lucky enough to work in RE full-time on your own schedule, come join us for lunch and networking.

We're averaging about 60-80 people per meetup in Bellevue and raise money for a charity called A Hero's Home each time through the meetup fee. This charity is dedicated to providing homes (acquired and fixed up by proven real estate investors) to those who have served their communities and country; it was brought together by a few BP stars, such as Jay Hinrichs, Brian Burke, Chris Clothier, Brandon Hall, etc. For more details, please visit: http://aheroshome.org/

We are in a brand new location now!

The fee is $15/person, and all proceeds will go directly to the charity. We have a generous sponsor taking care of the location and food for the event.

Please RSVP so we can get an accurate headcount for food:

https://www.meetup.com/RealEstateAtWork/

Pictures from the previous events:

Keywords: Redmond, Kirkland, Woodinville, Renton, Factoria, Newcastle, Mercer Island, Issaquah, Sammamish, Factoria, Tacoma, Everett, Bothell

@Dan Handford I don't think the HML directory is very reputable. Whoever pays the most gets to be shown on top, and they're almost always non-local lenders. Most of the local HMLs in WA aren't even in the directory.

@Cheri Crane Most of the local HMLs in our area charge the same:  12% interest (which is 1%/month) and 2pts for 5-6 months.  Most of them can close in 2-3 days as well.  A lot of them even fund same-day at the auction.  This not something the national lenders can do because they'll all require an appraisal (whereas the local lenders usually don't need one).

However, where the national lenders compete is pricing.  If you're a new investor, you can expect rates around 9-10% interest and 2-3pts for a 1-yr loan.  If you're experienced (i.e. have done at least 3-5 deals in the past couple of years), you can get rates in the 7's and 8's with 1-2pts for a 1-yr loan.

If you need to close fast (in less than a week), I'd stick with Intrust just to get your deal done.  One of our partners has gotten loan docs out in less than 24 hours before, but it's really rare to see that (the stars really have to align), especially if you're a newer investor.

I've used Intrust before, as well as a couple dozen other hard money lenders. I know about CoreVest, but haven't specifically used them so I can't provide insight on their pros and cons. I can tell you that there isn't a perfect HML that can do everything you want (low rates, low points, long terms, low down payment, quick closing, easy docs, etc.) so you have to decide what's important to you. Intrust is on the higher end of cost and down payment, but they are fast and have the easiest and fastest draw process of any HML that I've seen. They might not be the best choice if you need to have a loan that runs for at least a year as they typically don't do 1-yr loans or will charge a very hefty fee for it. This is the case with a lot of the local HMLs as well.

You're essentially doing the BRRRR strategy here, which I usually recommend folks figuring out their refinance first before looking at hard money to buy it. Most BRRRR investors are more concerned about the 6-month cash-out seasoning period to use appraised value (as opposed to cost), but it looks like you're concerned about DTI and not being able to get a conventional loan at all. Have you already spoken to a mortgage officer about this and have them pre-qualify your income and debt? I'd definitely do that before anything else. Depending on how you set it up, you can use rental income right away, or you might need to show 1-2 years of tax returns.

If you can't get a conventional loan, you may be able to get a commercial loan for the refinance, depending on how well the duplex will cashflow after you fix it up. Some commercial lenders aren't keep on cash-outs on the refinance though, although I'm not sure how important that is to you or what your BRRRR goals are in general.

If you have a free and clear property, it's not hard to use the equity there as down payment for your purchase.  You can do it as a single cross-collateralized loan or in two separate loans - one to cash out the money you need for down payment, and one to buy the duplex you want.

Hope that's helpful.  Feel free to call/text/e-mail me if you wanted to dig a little deeper into your specific situation.

I've had more luck taking the same lenders I know with me into different out-of-state markets. But I think you're looking in the wrong places if you're trying to do that; you have to talk to lenders who have a national presence. Local credit unions and community banks unfortunately tend to stay local.

Are you looking for hard money, conventional, or commercial/portfolio loans to implement your BRRRR strategy? Feel free to PM or email me to discuss.

Never heard of that before in our state. I'd say find another agent because there are plenty of good ones who won't charge showing fees.

These days, the Greater Seattle Area has an average of 3 real estate meetups per night, but what about those who can't attend evening meetups due to work schedule, family obligations, etc? Then this is the perfect meetup for you!

There are no speakers or pitching, just pure networking. Whether you're working a day job in the area or are lucky enough to work in RE full-time on your own schedule, come join us for lunch and networking.

We're averaging about 60-80 people per meetup in this location and raise money for a charity called A Hero's Home each time through the meetup fee. This charity is dedicated to providing homes (acquired and fixed up by proven real estate investors) to those who have served their communities and country; it was brought together by a few BP stars, such as Jay Hinrichs, Brian Burke, Chris Clothier, Brandon Hall, etc. For more details, please visit: http://aheroshome.org/

We'll be on the 2nd floor of Two Lincoln Tower (although we may decide to move it to the covered rooftop in the same building if the weather is nice). Please carefully read the directions to get there in the meetup link below. Parking is free in Lincoln South parking lot for up to 3 hours if you validate with any store in Lincoln Square. You can also park at Bellevue Square and walk over.

The fee is $15/person, and all proceeds will go directly to the charity. We have a generous sponsor taking care of the location and food for the event.

Please RSVP so we can get an accurate headcount for food:

https://www.meetup.com/RealEstateAtWork/

Pictures from the previous events:

Keywords: Redmond, Kirkland, Woodinville, Renton, Factoria, Newcastle, Mercer Island, Issaquah, Sammamish, Factoria, Tacoma, Everett, Bothell

There's a good brunch meetup happening at Lynnwood mall this Thursday, hosted by Jennifer Beadles and Tam Dang, two great local investors. Search for "Addicted to ROI" on Meetup.

I also host a big lunch & networking meetup in Bellevue each month alongside a couple of awesome investors.  The next one is happening next Thursday.  You can find it by searching for "Real Estate At Work" on Meetup or looking at the local BP events.

For W2 folks who are interested in rentals, there's a great group called Addicted to ROI. You can find them on Meetup or here on BP Events as well.

Can you clarify what you mean by "they're all still good in WA"? I was under the impression that you need to register your entity in the state you do business in. So if you created an LLC elsewhere, you'd need to register it as a foreign entity here in WA (which costs the same as creating one locally) in order to do real estate here. Then you're paying costs for the same LLC in two states.