All Forum Posts by: Andrew Syrios

Welcome to BiggerPockets Tiffany and best of luck investing!

Generally speaking, unless you have a really good relationship with a bank, they are going to want to see at least 6 months of seasoning before a cash out refinance (at appraised value). You'll probably just have to wait unfortunately.

Great job Neil!

Properties at $85,000 and under, even in Cleveland, are very hard to come by. Make sure not to buy in an area that's a so-called "war zone" as the operating costs on those almost always cost more than the income unless you're a specialist. 

Congrats Albert! What do you think the property is worth? 

All things being equal, it's definitely best to invest locally as you know the area better, can easily visit the property and neighborhood and can find contractors and vendors (and actually meet with them) much more easily as well as check on the progress of rehabs more easily as well. Pictures, videos, calls and the like are nice, but they aren't a replacement for the real thing. 

That being said, California is a particularly difficult market to cash flow in and the prices are through the roof. So in this case, all things aren't equal and I don't think it's a bad idea to invest out-of-state. Just be very careful if you do.

Welcome to BiggerPockets Timothy and best of luck investing!

"Friend to friend" is always a bit risky with business, so make sure he knows any loan has risks and that while you'll do everything you can there are no guarantees in investing/lending. Protect the friendship first and foremost.

As far as the structure goes, I would do it the same way you would do it with a stranger. Confusion and miscommunications can cause more problems than even default sometimes. Put the terms down on paper and then offer 1) A 1st position mortgage/deed (depending on the state) of trust attached to the property, 2) a note with a personal guarantee (this means your personal assets are also at stake not just the property) and 3) put your friend down as lienholder on your insurance so he would need to sign off on any insurance payout.

There are websites you can get these docs from or you can get them from an attorney. Either way, you should have a lawyer look them over and have them filed with a lawyer or title company.

Welcome to BiggerPockets Tobi and best of luck investing!

I would think so. It's definitely worth talking to a bank about, especially given how long you've been doing this for.