All Forum Posts by: Justin C.

Originally posted by @Leotis Hightower:

Congratulations Awesome news.

Where did the money from the closing cost come from?

What did you use the credit card for? 

Was the funding from the Private investor? 

 Hi Leotis,

The loan from the attorney was for $55k which covered purchase, closing, holding, and most of the renovations.  The credit card is for the remainder of the renovations which is 0% till October.  This will give me plenty of time to renovate and refinance.  

Let me know if you have any other questions!

Originally posted by @Brant Richardson:

  With little or no money in the deal, I would be happy with anything over $100/mo cash flow, and that's with a 30 year loan.

Is there some reason you are using 20 year loans?  A 30 year will give you more cash flow and a better debt to income ratio for future loans.

Congrats on the deal and good luck with future purchases.

 Hi Brant,

I'm chosing a 20 because its a good compromise between being done with a loan quickly and no cashflow vs. drawing out the loan little longer and having decent cashflow.  Just don't want to be in it for 30yrs.  Nothing more than that honestly.

Over the years, I have built a great relationship with my attorney.  He is my fathers attorney (by coincidence believe it or not), my mentors attorney, and has closed on a personal property of mine as well as my 1st investment property.  Over the years, I have done some home audio/video work for him as well as sold his BMW that he couldnt sell conventionally through a car-lot his friend owned.  This was imperative to building my credibility.  He has lent my mentor money for his investments and offered to review my first investment if I wanted too at the time.  I paid for the first one with cash as well as financed the renovations so thought I should keep this all mine while I could - this should be ready to rent within 2 weeks or so.  When this new house became available, my mentor and I walked through and immediately went to him to discuss financing.  We agreed per the numbers below in exchange for a lien on both properties.

Here are the numbers for this SFH:

$36,000 Purchase / $80,000 ARV

$3000 closing costs

$4000 holding costs for 5 months minimum

$55,000 Loan at 8.5% interest only with 0 points

Approx. $10-15k in renovations needed.  I have a 0% credit card till October of 2015 which will give me time to refinance to a 20yr conventional.

Here is the rental worksheet:

$850 per month income

-58.33 Insurance

-208.00 taxes

-280.00 loan once refinanced

-85.00 vacancy

-85.00 maintenance

$133 cash flow per month

Very cool!  Thanks for all the support BP!

We probably need a better description of the area but could you remove any fences and paths then cover with dirt and seed? That would be the simplest.

I'm about to do this on Tuesday. Bought my first property cash and using it as collateral for the second property that will be financed 100% including repairs. Bought first property for 17,500, put 6500 into it. Buying second property for 36,000 and putting 19,000 into it. My private lender leaned both properties for $55,000 interest only loan at 8 1/2% for five months minimum. Solid deal for me.

Always keep track of costs throughout the renovation. It should never come down to just receipts come tax time. Especially this day and age with spreadsheets and the other great tools available here on BP. You definitely need to ask your accountant. Or get an accountant.

Read, read, read : )

Balloons can be attractive to get a property paid off quickly but im a fan of PM interest only loans to finance buying and the renovation process. Then refinance to a conventional loan for the duration of the holding process.

I would appreciate any recommendations.

thank you in advance!

Sounds simple, but seriously... the standard toilet seats at HD or Lowes are 16.5" Round or 18.5" Elongated.  I need a 17.5" seat.  I've found them on Amazon but not sure if I really trust the stated dimensions.  I need a white one if you have a quick link.  Any thoughts?