All Forum Posts by: Nnabuenyi Anigbogu

They are as accurate as the information that you feed them. They give you results based on what you enter so garbage in garbage out. It however presents the information in an easy to digest way.

Based on what i have seen and heard, this is rarely ever a good idea and should be avoided if possible. If you go ahead with it there is a lot that has to be taken into consideration such as insurance and type of financing. 

What is your end goal with the property?

I am working on the same myself. One thing it will probably be good to include would also be a sample contract/promissory note that he investor can look at to get familiar with how you structure deals.

Congratulations!!! that is great to hear. Whenever you get a chance and if you don mind could you share the financials of the deal? I always like to peruse other peoples deals out of curiosity and also as a way to learn more.

I am sure you will make some serious money with this.

@Filip Gjorgioski You could theoretically do that with the first one, although FHA loans are probably more likely to be stricter with the due on sale clause. However once you do that you can't repeat it because you are only allowed one FHA loan at a time.

When you transfer it to an LLC the loan is still in place and under FHA so they will not allow you to get another FHA loan. You would have to refinance it into conventional in order to do that.

I have never heard of success path but i can pretty much 100% guarantee that it is a sales pitch. It sounds exactly like every other guru pitch out there today. Search for Fortune Builders here on BP and read up before spending your money.

@Aaron I believe he is referring to an illegal unit within a building. I know here in Chicago people sometimes convert basements to units by adding a kitchen an bath. The problem is if you do it without permits then you get in trouble if caught which is what the OP is going through.

@Account Closed Another potential avenue depending on the strength of your credit and risk tolerance is to seek out personal or signature loans. They cost about as much as a HML anyways. If you believe that the flip is relatively low risk (given that you dont have to buy the house its not as risky as other flips) you could see if you could raise the repair cash from a source like that. That would allow you to have the house occupied as you flip.

@Boyd McClean That is one unfortunate aspect of living in Chicago. However i am lucky in that my cashflow after all expenses is significant enough to cover any increase in taxes and still stay positive. Taxes would have to quadruple before i start getting worried. 

That is a great suggestion by Matt. It would probably be the cheapest way the money. 

Another possibility would be to find a hard money lender in your area that lends funds at that range(50K). Given the very low ltv, you shouldn't have any trouble getting the loan. And the 10K can be used as your contribution/skin into the deal.