All Forum Posts by: Orkeem Davis

Lenders are not interested because the loan amount is too small and it's difficult to get line of credit on investment property due to Dodd Frank Law. If you have another investment property, you can get a blanket Refinance CashOut because the loan amount would hopefully be greater than 100k. Most lenders will lend at 75% LTV. Good luck.

@Bob Razler

I considered the Cash Out Refinance, and I will look at it some more.  I prefer a bigger lump sum.  I would only be allowed 75% - 80% cash in hand.  

@Bram Spiero

Thank you for the feedback.  I will give this idea more thought and speak with my CPA.

Thank you!

I have owned my duplex for 2 months in Ventnor, NJ and I have since renovated the 2nd floor apt one and I have refinished hardwood floors throughout.  Presently, the duplex is bringing in $2100 monthly for both units.  1st floor apt 2 bd 1 bath - $1200 and 2nd floor apt 1 bd 1 bath - $900.  I am in the process of getting  a new roof.  With all of the upgrades, I guess this would be considered a partial fix and flip.  I am hoping to sell for around 155k.  I have an outstanding balance of approx. 75k.  Will I have to pay capital gains if I sell now?  Or is there a way to sell the property, CashOut, and use those funds as a part of my 20% down payment for a bigger property, i.e. 4 Plex? 

I see what you are saying, but he will be in a completely different place.  He will be the owner of the property.  He will have control of the property.  Definitely, a different place.

It looks like you will be paying too much for this property and the numbers don't work.  Not enough cashflow and you have to share with partners.....not very profitable.

@Marek Javorek I'm in some agreement with @Elizabeth Wilson on the MBA.  I have MBA too! My real estate education came from "Hard Knocks Approach."   Taking courses, reading, trying and failing, etc.  You need to be able to structure deals, present deals, and close the Deal.  With that being said, some of my MBA education was helpful with being confident, but I never mention I have a MBA as a selling point.  My 2 cent.  

You will get a lot more interest in this deal from commercial lenders as soon as you commit to putting 25% - 30% down.  Your phone will not stop ringing as long as the property cash flows.  Bottom line, you need more skin in the game to get this deal done, bring in a partner, or see if the seller is willing to carry the note until you are able to complete a Cash Out Refinance in about 12 months. Good luck.

Best advice given from Robert Gregg.  Plus you can google " no seasoning requirements for NJ investment properties."  Generally, 12 months waiting period is required, as stated earlier, to get the best return and hopefully build some equity.  It seems like you are on the right path...keep looking.  

In NJ, seller's subsidy is called seller carry back or seller concession.  Bottom line, this kind of seller financing is very difficult to complete and Close because banks, direct lenders, hard money lenders all want you the buyer to have skin in the game.  You need to be able to show that you have liquid, at least 20% down of the asking price, and sometimes they want 6 months of cash reserves.  Sorry you missed that Deal.  Learn from this Deal so you will be better prepared for the next Deal  Good luck. 

Hello South Jersey Investors:

I just bought a duplex in Ventnor City, NJ a few months ago.  Presently, I am working on another closing in South Jersey.  I should close the end of August 2017.  If you guys are setting up a meet up, I could try to make myself available to share ideas and network.  I visit AC often.  I will not be there this weekend, but I plan to be there next weekend. Thanks for the consideration.