All Forum Posts by: Ryan Howell

@Andrew B. - In NC we are required to disclose if we are licensed.  I always disclose and just have an honest conversation, that here is what I could offer (cash deal, no hassle, leave tenant in place, etc) and here is what I could list it for (as is, or fixed up, etc).  There may be an occasion you lose a deal for that reason, but in my experience the seller has a reasonable knowledge of what it is worth anyway and transparency tends to build trust.  This way, if I do buy it, I can sleep at night knowing I didn't mislead anyone or take advantage of them.

Even asset based lenders have a seasoning period in my experience.  They want to ensure you have some "skin in the game".  Seller financing is one way.

So my experience is with an attorney state, not a title company state. I use the BRRRR strategy so I'm closing twice on the same property with the same lender ~6 months apart. I negotiated $200 off the second closing...that said, my attorney typically charges $1050 for his fee (thus $850 for the second closing).

Typically, a licensed agent cannot accept or give a referral fee to someone who is unlicensed.  The issue is likely the company has a license.  Getting a broker to accept would just transfer the liability to that broker instead of the other one.

@Cody Neumann - Lima One, Civic Financial Services, RealEstateLender.com....I'm still shopping so not sure I have one to recommend yet.

I'm in the same situation.  Find an asset based lender that lends based on the asset not your income.  

@Richard Jennings - Personally I wouldn't do foreclosures starting out, but wait until your more seasoned.  You likely won't get to inspect the property or have a due diligence period, you also need to know how to do your own title search and know what liens are on the property.  For example, if the lien in second position foreclosed you are buying subject to the first lien...you have to know how to verify all this information.

I would find something in your area that needs maybe a minor rehab that you can BRRRR or house hack to start with to minimize your risk. After you do a few deals you may be more comfortable. I'm still not comfortable doing foreclosures unless I get someone more seasoned to help and I've done 6 deals and I'm an agent, but everyone has different risk tolerance.

I don't think age matters, but your goals do and so do your strengths and weaknesses, which may be different now then it was at 24.  My guess is you are more financially literate and have more net worth than at 24, which may change your strategy and approach.  Also, you now know what to do different and lessons learned from your previous experiences.

@Tim Scroggins - I'm not sure what you mean by "little to no return"? You will get a smaller check if you sell your house with less equity, but this is an opportunity cost analysis. If you don't take out the HELOC, that addtional equity is making you what % return (0%)? If you leverage it to buy a GOOD deal, then what is the return?

I used a HELOC to start investing in BRRRR deals. Each deal gets instant equity because they are good deals (adds directly to my net worth when I close) then that investment cash flows monthly, I get another long-term appreciating asset AND I refinance to pay the HELOC off and start again. The best way to calculate that is a basically an IRR calculation to compare that opportunity cost.

It sounds like you've made your decision. It will be a learning experience. I do suggest you do a worst case analysis...assume your contractor is over by 50% and your ARV comes in 10% low when you go to refinance. Are you still happy in 10 years you did the deal...or will the stress of that situation or financial impact be too much that you never do another deal?