All Forum Posts by: Seth Tucker

which states can you lend in?

@Bill Gulley you hit the nail on the head with thise points. I have a buyer lined up with cash in hand ready to take the green house away, and I will install a new lawn on the freshly leveled ground. 

@Account Closed I figured your loans were non-owner occupied, I planned on assigning my option to a friend who would hold the note and leasing it from him until I sell or refi out. What are typical term lengths?

@Troy Zsofka I did get the septic checked, and its functioning correctly all the way out to the leech field, so green light there. A new tank delievred and dropped into the hole I dig for it will run me about $1,600 for the whole thing, including the 1,500 gallon tank. I checked with the town code enforcement officer ahead of time to be certain, and he did say a new shelf plan would be required when I do the conversion from the 1 to 3 bedrooms, which is fine by me. So total project cost would be around $3,000 based on all the sources I have confirmed can do the work this way. I too wanted to avoid an $8,000 surprise.

@Account Closed I saw your posts about hard money and NH a few days ago and checked your site. I didn't see, but do you typically charge points and have a range for the interest rates? I am interested in talking tomorrow.

@Mike Wood you hit the nail on the head about the comps. There are no other 1 bedroom home sales in the town, the green house foundation is transite board (asbestos), and the property has an old steel septic tank that hasn't been pumped since 1992, so the lid rusted shut. It hasn't failed but the portfolio lenders have all said they require it to be repaired prior to doing an appraisal.

I did get the property fairly cheap and the seller said he is under financial strain so selling is a priority for him.

I have had the same struggles before, and what I have come to is: I don't mind paying a higher price to the seller to help them out. Not all sellers NEED the money and don't care about your profit, they just want the problem property gone. And solving that problem for them is more satisfying than anything. In fact, I look at it just like I do with my marketing agency: the value of the transaction is equal to what the buyer/seller gets from working with me vs someone else. Do I treat them better? Help them find ways to save their credit? Or rent a new home thats affordable? Would they live in the property and help with repairs, and agree to sell the property together in exchange for splitting the improved value? It's all so situational, but I see what you mean. People hurting and in need of cash tugs at the heart strings for sure. But you don't always know the full story and there is a level of responsability that comes into play. They might not be in this situation because they are a victim of circumstances out of their control. That's rarely the case.

So I have an interesting situation. I have been using a lease option with a home that I originally intended to purchase to live in. But the property has proven too difficult to finance because it's a 1 bedroom house with a 10,000+ sq ft green house on the property. Now I plan on flipping it, and have some interested buyers already. Questions: 1. Is owner occupied hard money possible? 2. If I do NOO hard money, could I refi into a stated income commercial (land lord) loan in order to get renters into the property and hold it long term? 3. Would doing a refi out of the hard money loan cause me to have to put another 20-30% down or would it be based on the appraised price? Also, the property is located in New Hampshire, which I have found to be hard to find financing in. I have a local hard money lender who can do the deal to acquire the property but I want my refi option lined up ASAP. Thanks for any input BiggerPockets friends :)

The good news is that you would only have to issue them a 7-day notice to vacate the property through the eviction process, based on what you're saying here in these posts.

Here is all of the law for evictions here in NH as described in the RSA's http://www.gencourt.state.nh.us/rsa/html/lv/540/54...

It is pretty easy to get people out of a unit in NH. The other way I've heard of landlords getting bad tenants to leave is by removing their front door... Just an idea for protecting yourself in the future.

Definitely learn about the types of lending available here in NH and how they effect you as a self-employed person. Usually you aren't lendable for at least the first 2 years, especially if you have no credit history.

Work those credit cards to build your credit up as high as possible for the first two years!

Just do a commercial loan on a smaller property. A portfolio lender will definitely do that with 20% down and excellent credit.

welcome Dawna! It's always great to meet another New Hampsurite on here.

Would you be interested in partnering on any deals? I find them often in southern NH