All Forum Posts by: Dane Peterson

Originally posted by @Gary Marcus:

Great advice. Thank you. I never really thought of lending money to a flipper, might be an interesting way to raise my cash reserve before my first investment purchase. 

Ultimately I’m looking to buy and hold as many rental units as I can acquire over the next 20 years or so. After thinking about what you said, I think the way to go might be to do a "cash" purchase with LOC and refi once ive paid myself back the initial 20% then pay the remainder with the refi and do it all over again. It's a little slower start than I was hoping for but I think that would work soundly.

Please let me know if that makes sense with what you were explaining. Thanks again. 

To me Gary it sounds like if your ultimate goal is unlimited number of rental units then you need to leverage the HELOC with Hard Money. Many different ways you could look at this. I'd consider using hard money loans for your purchases and saving all that HELOC money for your closing costs, first payments on hard money till tenants in place & unexpected rental maintenance. Also, depending on the hard money lender they might want you to bring some money in to the deal (they are all different).

If you put all your HELOC in to a single all cash purchase you will not grow your portfolio as fast! Would you rather the market pull back and you have all that cash tied up or available to snag up even more deals!

Originally posted by @Rich Hupper:

Hi can someone tell me if it is possible to pay heloc monthly interest with the heloc itself, as long as the line is not maxed out of course. What would this be called?

Hi Rich, I'm searching for a specific thread and didn't see a reply to your question. Yes you can if you have the available funds on the credit line. I guess you could see a specific guideline saying you can't write a check out of the line to pay the line but then you'd just be withdrawing the funds then paying with a personal check or bank transfer. The lender has no idea what funds are being used for what. I'm sure many people do this considering to get the best rates typically you need to withdraw from the HELOC at time of application/approval to get a better rate and not everyone will have an immediate need for the funds even if they take them. My guess is many people are paying their HELOCs with the HELOC money.

Originally posted by @Jay Hinrichs:

todays agents can be frustrating on the communication side.  Text messaging  not picking up the phone etc.

You do want to find an agent that works with investors.  And not one that specializes in selling to folks that intend to live there as a primary residence.

Also if you lead with the I want to low ball 50 properties to get one.. your going to have a hard time finding anyone who is going to do that.

Also you may want to provide your POF and your lending source.. Most GOOD agents will not do anything without those in hand as their sellers demand these things.. 

But setting you up on daily e mails of new listings is easy for any agent I get them in a few markets I like to work in.

 First thing taught to me! 

@Derek Lacy I wouldn't call it a problem since this is a forum and a large one at that. The fact that you found this post and commented and are from Florida makes the reply a bit ironic :) Bigger pockets has more than investors on it.

Also, this wasn't necessarily a state specific question/comment.  If it is, I'd like to know if a self-inspect is specific to Florida and your opinion about them. My understanding is that this is new this year and it's a way for insurance company to cut costs... what costs? I'd love to know. Sending a 3rd party out to photo the exterior of my properties was the extent to what I saw. I should be getting paid for what this self-inspect required!

Originally posted by @Brian Schoolcraft:

I don't know how it would be a violation for an insurance company to want to see what they are insuring.  Sounds like you need to find another provider.

 It's primarily the request for a video with narration. A little too intrusive in my opinion.  Also, what's the point of a inspection company and 4pt inspection that covers essentially everything they are asking for?  If there are problems with inspection companies that's one thing but could have saved $150 on that.

I get it. Just had to get it off my chest. First time with a "self-inspection"

Of course this is the one duplex I don't have property management on at the moment. In 6months when rent goes up that will change. Thought it'd be good to experience the self management on one of my properties as the rest are managed :) Hard knocks

A few months ago I purchased a duplex and assumed the tenants that were in place.  At the time we got insurance on the property with American Integrity. 2months later we got notice they were cancelling due to the tenants debris/junk in the backyard. The debris is basically toys, plywood, grill, etc.. probably a 10'x10' section of "stuff". The reason was that this was hazardous.  

We changed over to UPC insurance who I have dealt with in the past and within a month of having the policy and providing them a 4pt inspection (paid for 2months prior) we were sent an email asking us for a self-inspection with location services enabled on our phones and completing through their link as we took the photos etc... 

Exterior

• 1.)Left front Corner of home
• 2.)Right front Corner of home
• 3.)Left rear corner of your home standing back as far as possible
• 4.)Right rear corner of home standing back as far as possible
• 5.)Air conditioning unit
• 6.)Tree Houses/sheds/barns/fences

Water Heater

• 1.)Picture of the water heater to include the pipework exiting the heater
• 2.)A picture of the manufacturer/information label if accessible

Air Conditioner

• 1.)Air handler
• 2.)Manufacturer Label if accessible

Electric

• 1.)Clear picture of Panel (s)
• 2.)Manufacturer Label if clear

Plumbing

• 1.)Image of plumbing under bathroom sink
• 2.)Image of plumbing under kitchen sink
• 3.)Pipework and hoses connecting your washing machine to the wall

Interior Video

Please take a walk through video of the main living areas of your property, please provide narration as you film. Start at the front entrance. The video need not be more than 2 minutes in length.

------------------------

I called and tried to plead that this is ridiculous since I paid money for an inspection and I have tenants in place and not the time to deal with. There response was too bad. You have 7 days with our link. Well I made it over there by day 7 load up their website and the service within the duplex was so bad I couldn't even navigate to the next page (problem one with a self-inspection, you can't control the technology someone has).

Now a few weeks later we have been threaten with another cancellation and I have about 3 days to get this completed. They've "allowed" me to take the photos and just send those. I'm so exhausted and irritated at this and can't believe they want me to Video the inside of a my tenants property with all their personal belongings.

Am I wrong in thinking this is a violation of some sort?

thank you @Chris Mason good info a program I knew nothing about!

I'm still pretty green to real estate. Two years and counting and I love that every deal has it's own challenges or hurdles. Even the easiest of deals will have something.

Another new "policy" has just been explained to me by the lender, for the borrower, that the FHA requires a 2nd appraisal when the purchase price is over 100% of the seller's purchase price and within the 91-180day period... Also to go along with this, the FHA will not allow the buyer to pay for that 2nd appraisal (not that I would if I was the buyer).

Can anyone give me the reasoning for this? I understand the 90day seasoning rule in effect with the FHA on rehabs but what does the price have anything to do with it when there are plenty of comps, proof of paid rehab work & the 1st appraisal comes in to justify the price? We aren't overpriced if anything we are under.

I'm not complaining by any means. Plenty of profit in the deal that coming out of pocket either $250 (if buyer's agent will pay half) or $500 isn't that big a deal but it's the policy itself. If the FHA wants to implement this sort of policy then it should be on the lender or FHA to cover this. Also I'm always on the listing, selling or cash buyer side so I never deal with the appraisals besides to let the appraiser in the property but is $500 standard for appraisals right now? Seems a bit steep and i'm assuming this is a lender cost that's fluffed a bit.

I would think your in the ballpark of $1000-$1500 for the staging then monthly rate forward. We stage every rehab and being the person that photos properties, it's 100x better for the photos. you can always do your own minor staging with ikea, blow up mattresses and boxes if you plan to do others. For what staging costs you could probably buy used for a 2bd1ba enough staging items but stop and ask isn't worth your time. Good luck!

filtering my search is a pro feature?

Is this an issue with the Android bigger pockets app as it's not listed as a membership feature.

maybe I'm doing something wrong but never have I ever not been able to filter a search due to a membership. maybe you should just charge to search period....