All Forum Posts by: Sheila Villacampa

Chicago Action Investors is a good meetup, connect with @steve vaughn

Michael Wentzel Thanks for the reply and your vote. I thought about your suggestion, however I don't want to change the terms that I presented to my aunt. She might think I'm flip flopping ideas to suit me. However the 24 months term might work if I can find another private investor within my circle with a higher interest and a second lien to the property? Is that something doable? Or does that impede my ability to refinance in a year to pay off the the first private investor? Thanks again, Sheila

Darren Eady Thanks for your input, I will call Chicago Title today.

Two months ago, I started to look for a private investor to rehab a SHF. Eventually I found my aunt who is willing to loan me half of the rehab cost of 50k with 2% interest in the first 12 months. And balloon payment with 8% interest at the end of the 12 months term. This also comes with a promissory note and a deed of trust. My questions are the following: 1. I understand that a promissory note contains the terms of the loan, is the manner of withdrawing the money be included and should it be tied to the rehab phases? Should I have a promissory note be reviewed by a lawyer? 2. Can someone walk me through on how to do the deed of trust. Is it simply to approach a title company and arrange for a closing? 3. Is it possible to close on this in a month? All of this is unchartered territory for me and I want to do it right the first time. Thanks so much for your help.

Howard Abell Thanks for taking the time to explain the concept of Debt coverage ratio. That's new to me. Based on your example I was able to get a 1.22% considering a loan of 110,000.00 4% interest x 20 years fixed. Thanks for helping me think through the process. I might have to consider increasing to 30 years cash out refi to increase this ratio. Thanks for your inputs, I greatly appreciate it. Sheila

Howard Abell , thanks for the input. Yes I can show why the debt/income ratio is high. One of the units I bought I placed my mom's name on it, but the rent monies come to me and pay the debt service on one of the loans I have to purchase the unit in cash in 2012. The exit strategy I have in mind is a cash out refi of the property. I'm borrowing only 70% of the ARV, to make sure I have an equity in 12 months. I will be able to get a conventional financing based on my W2 income as one of my mortgages of which I am paying almost a 3rd of my W2 income will be paid off in a year. I will also be living in the subject property once rehabbed and my current property will become a rental and can generate 1 k in gross income. That's additional income to pay off more loans increasing ability to get a conventional cash out refi of the subject property at 70% ARV. Does that sound feasible?

Hello BP, I am inching towards rehabbing my SFH that I purchased cash in 2014. After trying 2 conventional rehab loans that were denied due to high debt/income ratio, I am now trying to get private lenders from people I know. I will be meeting with one today. Based on my study here on BP, I can show an ROI of 28%, Cap Rate of 7.1%, cash flow of 1,674/annual, after vacancy rate, PITI, Cap Ex were taken. I have laid out plans in a way that the property is ready for rehab, Architectural drawings are in place, building permits are in process, Scope of Work estimates from 3 GC in place. Private financing proposal is 12 months term, 2% interest only for 12 months, then pay whole amount at end of term with 8% interest, with a note and a Deed of Trust. I have also included an example of successful deals I have in the past. Are there anything else I should think about, in order to land a business? Thanks so much for all your help. I am so grateful to have BP as my support. Sheila

Albert W. , Hi I was wondering if you can give me the contact information of the lender you described above. I'm ready to rehab a single family home which I planned on moving into and make it my family home. I have purchased a fixer upper and it needs close to 100k rehab. If you can PM, I would greatly appreciate it. Thanks, Sheila

Hello BP, 

3/1 apartment near U Of C in Chicago. Unit includes 1 parking pad, close to transportation, Lake Michigan, easy access to downtown. 6121 S Champlain Ave. Unit 1, Chicago, Il 60637

1150/month

Hello BP family, 

I hope everybody is pursuing their RE goals and maintaining positive outlook!!

I'm trying.. 

Here's some updates with my RE investing:

1. Husband remains negative,, please don't mind him. Actually, prompt me to write this blog in this wee hour. And maybe that is good.

2. In the last 6 months, my credit score has increased by 70%.

3. I have finished renovating.. Well almost finished, property 8 and am now screening applicants. This is very exciting!! Since BP, I have gotten better of knowing what to ask and look for in getting good quality tenants. Thanks so much for Brandon's Ultimate guides. 

4. I'm in the process of getting some preapproval from lenders for a Rehab Loan for property 7. A single family house which require about 70k in repairs in a B- neighborhood and probably 1 mile away from Future OBaMa Library. This is a SF home that I plan in living when the project is done. 

My question to you this time around, is this: 

NHS or neighborhood housing services has denied my application for a rehab loan due to this-- that I cannot provide evidence that I will be living in it. 

Is this something they can do? If so, how can I convince them that that is what I do intend to do? I have countered to them that if I can provide a copy of the rental agreement of current residence in xx amount of time after rehab of the SFH, will they approve my application? So far there is no response.

My strategy, I have decided by the way,  is to: buy, rehab, live in it for two years, sell or rent, repeat.