All Forum Posts by: Justin Hammond

@Joshua Schoer do you have $200-$250k to put down? If so I may be able to help

@Jeff Silver, if the seller goes through a loan modification then why would they need to sell to you? Are you working directly with seller? 

@Joshua Hoffman , if you are trying to pull as much cash back out of the deal on the refi as possible, you'll want to look for deals where you can create a lot of value. If you BRRRR on a paint & carpet remodel, you'll end up leaving essentially all your money in the deal plus your hard money costs.

If pulling your money back out is a big concern, it may be a good idea to partner with someone on the first deal. Maybe give them half the deal for putting up the down payment and rehab? Then on refi you get back as much of their capital as possible? At least that will give you a ton of knowledge of how the process works. Good luck to you!

@Joseph Skoler Your basis is $120k on the property and $10k on the note. All the gains will work themselves out when you sell the property and/or extinguish the note. If you sell the property for $125k, you'll have a $5,000 gain on the property and a $90,000 gain on the note.

@Teresa Williams, Then you need to get out and network with others and spend time with people who are in the business. In this environment, capital is the easiest thing to come by. Deals are the hardest. So if you can prove to people that you are good at finding and operating deals, capital will gladly show up.

@Richard Lincoln You should be able to cancel the insurance policy that's in the previous borrowers name, and then submit another policy with either your company as an additional insured, OR have the policy be titled like this:

 [Original Borrower's Name]

[Your Company Name]

ATIMA

(As Their Interest May Appear). 

I own a bunch of rentals subj 2 existing loans, and this is how we handle our insurance policies. I have also refinanced many and haven't had a problem. 

If you keep having problems though, I suppose you could find someone you trust (spouse, family member, etc), then deed the property to them. After you deed to them, you could have them deed it to you with a wrap mortgage. That way your lender is technically your family memeber, and the loan is in your name. your family member will be the one with the other loan behind theirs. 

(of course the terms of the loan and sale will be a wash for the family member. Just a transaction to make it crystal clear for the lender)

@Nick Voyer

Props to you for starting early.

1. Listen to as many BP podcasts as you can. Start with #1 and just let it roll. This will help you determine which fields of real estate get you excited.

2. Read at least one biography per month of billionaires (hit me up for a good list). This helps you realize what's possible, and also shows you that the hard and disappointing experiences are all part of punching the ticket.

3. Buy something. Buy a rental. Good things start happening when you own property.

4. Realize sooner rather than later that financing is not limiting you. There's plenty of money out there to fund your ventures. You can always find lenders or partners. Finding the good deals and figuring out how to make money is the hard part.

@Tyler Ballard , start by going to REIAs and listen to every episode of the BP podcast you can, especially the wholesalers. 

In this market, the hardest part is going to be finding good deals. Getting an investor to pay you for the deal is going to be the easy part. If you are a little unsure how the contract process works, I would focus on finding motivated sellers and partner with an experienced investor to run with it. Let me know how I can help

@Dorian Gray I have done some hard money lending in Ohio, I'd be happy to chat

@Jason Williams, yes when I say "retail" i just mean single family homes at a retail price, as opposed to trying to create equity through remodel.

The challenge with some 5/1's are the closing fees. Do you know what your lender charges? I'm guessing you'll pay 3% in points/fees (or more) and then you'll pay these same costs again when you refinance. 

But if you don't mind leaving money in the deal it's totally worth going for it. You'll learn a ton and really get a feel of the whole process. If you need to pull out your entire capital investment, it's good to keep these things in to account. 

All that said, I always like to err on the side of just doing it and figuring it all out later :)