All Forum Posts by: Josh Caldwell

Am I correct that you bought this at a bargain price, and you are worried that you created your own low comp?  That generally wont affect your price point much, as that is gathered from as many legit comps as the appraiser can find.  If your shows up as an outlier, it "should" be recognized as an odd ball. With that being said, it is possible that an appraiser will just get lazy and not look into your property and see why it isnt reflective of market value. Worst case, you could hire an appraiser to get him to place a value on your property. 

Come and meet me in person this Saturday morning at (Scott Plaza)2401 Scott Ave Fort Worth, TX 76103. My good friend Tim Cook of the West DFW REI Group is hosting and my other friend Mike Jacka of the Minnesota REIA club will be the main attraction. Mike will be teaching you how to make offers like a pro, more importantly, how to make offers that get accepted. Mike is a very experienced investor and he knows what he is talking about. Better yet, the event is FREE, you won't get a better price than that. In more good news, I will be there to answer all of your questions about funding your deals. For those of you who haven't met me in person, I will be wearing a bright green shirt that says (I lend money) I am also sort of shaped like a lime. All you need to do is to look for the human lime, and if you can't pick me out of a crowd, you will never find a house to buy!!!

Registration link and details are just one click away - Did I mention that it is FREE for first time guests of the West DFW REI Group?

http://www.WestDFWREIGroup.com/EventsPage.aspx?ID=Making-Offers-Like-A-Pro-Live-and-In-Person-123-8-7-2021&evntID=123ntk7nrXUvbGiPMLBmetyG

To your success

Josh Caldwell

The Real Estate Money Guy

I am pretty creative. Ask them what happens if you drop it into a trust first. In general, the LLC to trust is NOT a transfer for the banking industry but it might be for TX, I am not sure here. Then you can either get a loan in the trust name or transfer again into your name.

@Anthony Angotti is right Matt Beam in another really good one  

Send me info 

Let me give you a second way to give him 100% of his asking price without being able to get a loan. This one requires you to have a down payment. Not sure if that works for you, but if it doesn't, you can look to raise that amount privately since it is a smaller amount. You give the seller a 20-30% down payment, and have him refi the house for the rest of the cash he wants, then you take over his refi payment until you pay off the loan and own the house free and clear. Does that make sense? 

Cash flow by FAR. Cash flow will allow you to keep your property and profit in any market.  Appreciation is speculative, much like gambling. Don't believe me, talk to anyone who lost their back side during the 2008 crash. Everything was appreciating like crazy in PHX back then also, and they didnt see the crash coming. 

I love creative finance, I know my signature says hard money lender but that is only one fraction of what I really do. I have been teaching creative finance for years. My best trick is to look at the total of payments for a 30 year amortization. On a 300k house it is about 619k. Imagine if you walk up to your landlord and offer him 619k for a 300k house and all he has to do is be willing to do this in an unconventional way.  That way will be governed by a legal contract which will give him the right to take the house back if you stop making payments. Do you think he will be interested in talking to you???  Most people are if you approach them that way. He may balk at 30 years of payments but then you can add a balloon in year X.  

Why not take the hard money loan and then refi out after the repairs are made? Am I missing something? What is your purchase price? and does this meet a MAO formula? (Purchase plus rehab = less than 70% of the ARV) The only flaw I can see is if you dont have enough money to close the deal.

@Daniel Jenkins you are partially correct. Hard money terms will always be more expensive than bank loans and that expense will make some deal turn sour. In that case, you wont be approved by the underwriters. So the hard money lender gets to act as a second set of eyes to evaluate the safety of your deal. In a competitive market, you are going to have people who by property that does not make financial sense. Those people will lose money, do not be one of them. Choosing a property to invest in is not something you want to rush into, just because all of the other fools are doing it. You want to choose your investment property like you choose your spouse, very carefully !!!