All Forum Posts by: Monica Breckenridge

I am doing tons of refi's right now. I found a local company through networking that has no seasoning on refi's. They will refi the full loan amount plus their refi costs but no more than 75% LTV. So I am out of pocket absolutely 0 money for most of my deals. This is great for me because me and my credit partners can get more deals done this way. When you just buy a house and put 20 %, most people would eventually run out of money quick. We have just been keeping our down payment money and keeping the money in reserves. Our lender Denver Mortgage Company requires 6 months reserves per property you own and they will lend up to 10 properties. They are a portfolio lender. So call around and go to local clubs to find lenders like this in your area. I think it's worth it. My average cashflow per rental is $500. But I have others that cashflow $700 and this is with a 30 year fixed loan with interest rate of 4.8% for investor loan.

You are absolutely right! I'm seeing this competition right now in my market. I am an investor and also own a brokerage company. With our brokerage company we have many short sale listings and they prices that we are getting for these owner occupied houses is really baffling me. It appears the market is going up and investors are getting out bid every time by first time homeowner's. Now these houses aren't trashed, but not rehabs either. They are simply dated but nice looking houses.

The trashed houses I'm seeing investor bidding them up so high. It seems the investors using their own cash or doing the rehab themselves are the ones winning the bid. I simply can't compete with these people. I do many deals at once and use hard money or private partners on all my deals and I definitely don't do the rehab's myself. So I think investors need to find off the MLS deals where they are in full control of the deal and there is nobody else bidding on your house. This is why I do short sales. My average profit is $30k or average cashflow on the rentals are $500. It's great because I simply don't like to compete.

I would make the offer, it doesn't hurt to try. From what I've seen with HUD is they won't take a certain % below the list price as an offer. I'm not sure what the % is and am curious to know what that is. Is there anyway you can do a light rehab and sell the property for less and adjust the numbers any to increase your chances in getting the house? You would have to see what other owner occupied houses are selling for or other lived in short sales and that should be the price to sell. I just did a light rehab and my profit will be $30K and my rehab was only $5k. I've been noticing a lot of our short sale listings are selling at really high prices lately and if you offer a non short sale at the same price yours will sell fast.

This year I have bought 5 rental properties. 4 I am getting loans on myself or with credit partners. 1 was a subject to deal. All the properties I got loans on are cashflowing $500 +, my sub 2 deal is cashflowing $275.

I have bought 6 fix and flips. One just closed yesterday and we made a profit of $40k, but we split that with our partner so our actual profit was $20k. Another rehab we did just got under contract today and our estimated profit is $30k. That rehab was only $5k today. This one was our test rehab, we were testing the market to see if we can get away with a lesser rehab, stick it on the market faster and sell for sell and still make the same profit, and we actually got a bigger profit so I think we'll be doing more light rehabs now.

My goals are to buy 12 rehabs and 12 rentals this year but I think we'll pass those goals. I have several short sales in the pipeline that are getting ready to pop. 5 more rehabs and 4 more rentals within the next few weeks.

This year seems to be going better than last year for us. We are getting more deals closed with bigger profits.

I wouldn't do a cash out refi! If you qualify for more loans is your intent to use the cash as down payment on a 30 year loan? If so you can get more bank for you buck by buying a house using a hard money lender or any fix and flip lender. Make sure the deed of trust is in the amount of the purchase plus the rehab. Then refi the property with a low seasoning lender to get all your money out and then be out of pocket zero to up to $5k. We are doing these transactions in Colorado. I use Denver Mortgage Company here, but I'm not sure if they will lender where you are. If not there must be other lenders in your area that are doing similar loans.

I believe Bank of America took over most of their loans. But I don't have a phone # for a specific person in their REO department. I would just call Bank Of America and ask for the REO Dept and see if this is their loan.

At our auctions the houses get bid up very high. You need to use your own cash to make the deals work. And the ones you do buy, another investor redeems you buy buying a lien.

My deals come from direct marketing of the foreclosure list since our focus is short sales. We also get deals through our website from people googling. We pay for leads through z buyer and cashhomebuyers.com. We get regular leads through them. Since i've been doing this for 5 years we also get deals from referrals. I do rent to owns and have rentals, the renters calling are a good lead source. They are usually themselves or their landlord is in foreclosure. I also mail postcards to every house in my target neighborhood once a month. I get subject to's and short sale leads through these.

Welcome, bigger pockets is great for networking and learning strategies investors are using today.

Here's my idea on what you can do withnyour money and possibly never have to work again. First off congrats for being so young and ssving your money. If you live in colorado springs, co you can buy a nice house for around $60k-$100k. If you have a job and qualify for a loan you can buy 10 houses with little to no money out of pocket by getting a fix and flip loan and then refinancing to a permanent loan after the rehab has been done with denver mortgage company. I've been buying up short sales in thr springs with 0-$5k out of pocket and my cashflow is $500. $500 x 10 loans is $5000 a month cashflow. Or you can put more money down and get more cashflow. Or you can take the extra money and buy fix and flips cash.