All Forum Posts by: Sandra Habiger

This is our March Networking Event.

Topic: Getting Started in Private Lending - What Every Newbie Needs to Know - With special guests from Ticor Title.

Does the stock market scare you? What kind of return do you get in your savings account? There are secure places to park money and earn much better (safer) returns, passively. On March 13, we will discuss private lending. 

- Finding deals to invest in.
- Underwriting the deals.
- Underwriting the people. 

During the meetup, we'll share our stories and things we learned to do (and not do) when lending money privately. 

Want a free beer? Show up about 15 minutes early with an off-market deal to talk about with Ryan

Come Hungry and Thirsty to support this local eatery!

I'd do it in the kitchen. At least that's where most European countries have their washers in a small apartment. When you change the house from a 2 BR to 1 BR, it might change your ARV.

Last week, I had my first conversation with a seller. He didn’t have a price in mind - told me to “look up what houses are selling for and deduct my repairs”. At the same time, he doesn’t want to show the inside of the boarded up house to me until we talk money.

He wants to meet for coffee and talk more.

I did a market analysis, I got some contractors to give me some estimates based on what the seller told me is needed (and what I saw from the outside) and I have an amount in mind that i want to offer him.

How do I approach the conversation? Should I just tell him my offer? What are your tips?

@Freddie Bogard

I'm in the process of selling my house and I can tell you why I didn't accept any of the offers with an VA loan:

All offers (including the VAs) were $20-30k above asking price

On the VA loans:

There was no down payment

The earnest money was $2-3k

And the people only had $2,000 on their 22AD form or no 22 AD at all.

(From what i understand, the 22AD form states the amount that the buyer will be able to pay in addition of the appraisal comes in low).

Now let’s say that my house didn’t appraise at the amount of the bid. Due to the low or non existent 22AD form, I didn’t want to risk for the deal to fall through and having to start from the beginning.

Thanks Theresa. I will be listing my house mid January :)

I own a SFH that's currently my primary residence. Next year, I want to move to a duplex (fix it, rent out one unit, stay in the other half for a year, repeat). What should I do with the current house? Should I rent it out or should I sell it and reinvest the proceeds?

Here is my current thinking. I haven't run the numbers yet to compare both options.

Rent it out:

The house is in a desirable location. I estimate a 95% occupancy.

Estimated monthly net cashflow $600 

So far I know, all HELOCs are still frozen. I haven't looked into a equity credit yet and don't know if they're available either right now. If they are possible, I estimate them to be about $40,000.

Sell:

Estimated net proceeds: $100,000

I would save on capital gain taxes, too.

I will use the proceeds from the sale or the ELOC for the down-payment on the duplex. 

What else should I think of when running the numbers for both options? My long term goal is owning rental properties for passive cash flow.

Thank you, everyone! :)

@Richard Kelly

I would love to own a house with solar panels! I agree that they don’t look very appealing, however, I wouldn’t remove them. In my mind, solar panels go well with a modern house. How can you modernize the look of the house without putting a lot of money into it? Maybe paint the bricks white or grey? I’m sure you can find ideas on Pinterest.

@Mark Miles

Thanks!! I didn’t even know those exist! 🙈 I have a Schlage on my door, but it’s an old school manual one.

Congrats on purchasing the rubles, @Cassi Justiz!

I'm interested in the numbers a little bit more. What's your cash flow per unit and what's your cash on cash ROI percentage?