All Forum Posts by: Reh N.

@Roman M.

Roman, I spoke to someone and they said down payment is typically 20% with 10% Interest and 2 points. Is this realistic or must I actually get it scoped to see what numbers I’m looking at?

@Stone Saathoff

Hi stone,

Thanks for your response. The house is foreclosed and I need to have cash to make this deal happen. It is a single family house located in New York. Foreclosures can still be expensive here.

— Now, I was wondering whether or not I should include the violations + fees on the building into account and construction costs when I get my hard money? Also, should I factor in the repayments for the money lend to me into the hard money? The house might be purchased for $450-$550k. After I do construction, transitions to a 2 family, the property will be close to $1 million.

-I’ve estimated construction will cost me $100,000-$150,000

-Violations are $65,000

If house is bought for $500k, plus what I’ll need to do to it, then it would cost me $680,000 (estimate).

Two options I’m looking at.

Purchase Just property, and pay as I go. $500,000 hard money, cash over the span of 6-9 months $150,000 excluding down payment.

OR

purchase property, factor in ALL costs into my hard money still having cash in reserve just to be safe.

@Simon Luo Ben Mallah ‘life for sale’ on YouTube can give you some insight. Brooklyn NY born and raised. Very inspiring and brutally honest. To the point. Currently has a portfolio of $200+ million. I’ve personally learned a lot. He started from scratch and explains pretty well. From what I know, he makes apx $6 million a month and this is just his hotels.

@Ray Gomez

Hey Ray,

Did you eventually invest in Binghamton?

Would like hear your thoughts from where you initially started looking into purchasing and made your first deal.

Hi,

Any experienced investors in Binghamton, NY? Wondering if I can DM you about some questions I had.

Thanks in advance.

Is there any other way I can get a mortgage on a property that requires cash only deal? I have a business that generates close to a million annually. I want to get a mortgage but will most likely not be approved because my personal income being low. I want to purchase a property that’s has been foreclosed through a buddy of mine but would not be able to get a mortgage on it. I was thinking is there a way I can get a commercial loan perform the construction then apply for a conventional loan and pay off the hard money lenders for example and then pay my monthly mortgage?

(SORRY IN ADVANCE FOR WRITING SO MUCH. THIS IS MY FIRST TIME IN REAL ESTATE) 

Hi, So I am looking into purchasing a property for the first time. Here are a few things to consider prior to forming an answer. 

-It is a single-family however, Land Use stated can be used as a 2 family. This is no issue as I already had plans to factor in the cost of transitions from a single-family to two. 

- The property was purchased via auction. the auction hasn't been approved yet. the property was purchased through someone else because I don't have cash in that amount laying around. This person has enough cash so I asked him to purchase it so I can get it through a conventional loan. I do plan on compensating them for this transaction. I would have enough money for a down payment based on the price I'm thinking of inclusive to his fee on top. (he's a family friend). 

Question 1) Would the property be approved during current conditions? Reserve hasn't been met but we were the highest bidder and it has ended. I'm assuming during these tough times I don't believe banks would still manage to be greedy at this moment. but who knows

Question 2) When scoping out the property, I noticed on the website it had the tag "SPECIAL SERVICING CONDITIONS APPLY" I did check bigger pockets but I don't think I understand can someone please explain this? I've Also read Special Servicing Conditions Properties get a response longer than usual. Anybody has dealt and can let me know how long this process might've taken you? 

Question 3) The Reserve hasn't been met does this make it highly unlikely I would not be awarded the property? 

Question 4) the Property has over 60k in fines however they were because it defaulted. any idea on whether or not I can reopen? getting a loan on this would be out of the question as they don't typically approve loans with houses with fines. I would be working closely to resolve them prior to applying for a loan. It was also over something silly that should've been dealt with but I guess not. can I get this reopened, correct the hazard, and have them adjust the penalty? 

Question 5) As some might question the conventional method, please be mindful I'm in college, and much younger than an average investor. I'm not sure what the condition is from inside because they did not allow access and the majority of auctions do not let you enter to scope the property. I'm hoping the property is in a condition where the appraiser or whoever comes to inspect the property will approve for a loan. If it is not, I'm hoping to spend a little money to get it to the bare minimum approval condition. Based on your experience purchasing REOs do you think the property will be in an OK condition to the point where ill get approved? yes I know it's difficult but based on what you've dealt with.. 

Question 6) how much do you think I should pay him for his services? I do not want to be greedy because he doesn't have to do this for me as this is my stepping stone and will potentially set me up for life. 

- Property is purchased at 520,000 for example, value is 720,000 currently through comps. it is in terrible condition im assuming due to the exterior work. after reno and transitions, I believe it would be valued at 850k-900k easy generating $3,000+. I was thinking of anything from 600k-650k hopefully. 

and for a final question, How would you approach this situation knowing these conditions? 

all input would be greatly appreciated. 

Hi, i have a property in NYC that i can acquire for $550k and im also a general contractor that can fully gut and refinish the property. 

Only issue is i don't have the cash to purchase and perform the construction. The owner is a family friend who is also an investor and wants to help me start out with real estate investing. 

All in all, is there any way i can find an investor who will purchase the property in a partnership agreement and give me the money to perform the construction (cost price obv.) and flip the house for $900k? splitting the profits 50/50? 

New to this, so just want to know if there are investors that are out there that are willing to invest their money in the property and use my expertise to perform the construction at cost price and sell for a profit later?