All Forum Posts by: Account Closed

@Hoa Nguyen If you choose a hard money lender, what would be your exit strategy in getting out of the loan? Typically, the hard money loan is designed for a short period of time. As you mentioned the property is turnkey, what could you do to force appreciation through repairs, rehab, etc that would build enough equity or value to allow a traditional lender to allow you to refinance? If you can't build that additional equity into the property, it could be difficult to secure the financing you need.

You could try a personal loan to cover the difference in the cost but you will have to examine your risk tolerance, DTI, payments, etc, and if that would work for you. If your DTI is in the mid-40s before obtaining this property, I believe it will be challenging to obtain traditional financing but I could be wrong. If you could put a presentation together to show the profit potential, do you believe you could reach out to a family member, friend, colleague, etc to obtain the approximately 30K you need and split the profits? A little of something is better than all of nothing if it's the only way you can get the deal.

@Scott Esmail If I had to choose between one 'touch' or mailing or multiple, I would go with multiple. I have a much smaller list I developed from driving for dollars but I focus on getting at least eight (8) 'touches' or mailings to each one over a period of time. The goal is for them to either say yes or tell me to stop mailing them. Either way, I'll know the marketing will have worked!

@Zack LeRoy Welcome to BP! As far as your goals, what are you looking to do? In order to address the question of creative financing, it would be good to know what you are trying to do. Are you trying to get any type of property or do you have specific, measurable goals you are working on? When you say 'getting access to capital thru creative financing,' do you mean having access to lenders by being creative or obtaining assets by being creative?

@Tony Todd Welcome to BP! Personally, unless the deal is incredibly good and I can offer sight unseen, I walk the property or have someone I trust prior to putting a contract in. This is just for my walkthrough to see how I feel about the property and targeting serious issues without the affirmation of a home inspection report; cracked foundation, holes in the house, broken windows, wet walls/floors/ceilings, wet crawlspace, etc. This is based on my comfort level and previous experience working on properties. If you don't have that comfort level, having a professional is always a safe bet but could delay your ability to get under contract quickly. 

You can save time though by getting a feel of where the seller is at before wasting time on a walkthrough. I just walked a property where the owner wanted what they bought it for two years ago so I knew it was going to need some work... well, after the walkthrough, it was deemed a complete rehab down to studs including floor joist repair, crawlspace remediation, HVAC replace, etc. That was much more work than I expected and based on the ARV, I would have needed to be 115K under their asking price. Make sure you are following one of the rules such as the 70% rule, or whatever percentage your market allows, and you will be fine leaving enough safety cushion.

@Juan Erick Rico Avalos This is going to be up to you and your relationship, as short as it is, with the tenant. Would it be beneficial for you to provide a moving truck or cash for such to speed up the process? You aren't required to but in the case, they decide they aren't leaving stating a hardship due to the time of year, weather, etc, it would be cheaper and faster to provide assistance to get them out instead of going through a court process. The assistance could be as simple as a couple hundred bucks, a moving truck, helping them move, etc. Additionally, I believe you could write it off as a business expense but check with your accountant.

There is opportunity in deals like this but as Harry mentioned, there are things to be aware of. I have a friend who lives near the water in an adjacent town to Seaside Heights and the town is requiring that the home be raised or they face hefty fines. I'm unsure if Seaside is requiring the home to be raised or not. Flood insurance can be high depending on who you go with, check numerous agencies for a reasonable quote. It all comes down to what your profits versus costs will be if you have to raise, hefty insurance etc. Good luck and keep us updated!

As the previous posters both stated, maintain the tub if possible. It is very important for childcare and will turn a lot of renters off to the property if there isn't one.

@William Middleton Welcome to BP! It's great you are looking to get started and embark on the path. If your wife is truly not on board (only you will know of course!) with the BRRRR/Flip idea utilizing equity from the home, you are best off to pursue the garage idea but there are a few considerations to take into effect. How will you be funding the build? Will it be a loan or from cash on hand? Construction times, delays, permitting etc. will all affect how long it will be until you can start making money especially if you are making monthly loan payments. Doing your own work is always great if you have the time, money, and ability. Permitting will be huge in ensuring you are compliant with all building code requirements, especially if you ever plan to resell. If you are borrowing the money for the purposes of construction, the lender may require a certified general contractor to oversee or complete the project.

Lastly, you might be able to add an extra income stream if you could locate a mechanic who could use the garage and live upstairs in the apartment. This would depend on your tolerance for vehicles in the yard, where you are located, and if anyone would be interested. Very interested in where this goes, please keep us updated!

@Bryce Richardson Digital marketing is one of the big marketing methods for many investors. There is a huge demand for it and if you offer the right services that stand out and provide results, you could really be on to something. With that said, there are some great ones that already exist right now. That doesn't mean you can't or shouldn't but what will your business offer that will stand out from the crowd and provide impactful/meaningful results? I'm unsure of your background but having skills in graphic, print, and web design would be huge to get an idea of what to do in an ever-changing field. I did design work for years and know that by not staying current on the trends, it's very easy to be out of the loop and industry standards. Have you developed a business and/or operating plan yet or is this still in the conceptualization phase? I'd love to talk more about the idea, please reach out anytime to connect!

@Chukwuemeka Ogbonna Congrats on the job promotion, that is very exciting! Reach out to realtors, property managers, wholesalers, flippers, etc. in that area (can use Google, Craigslist, FB, etc) and ask if there is anything they have or know might be available. You can also lookup the owner names of MF units you might desire if you've identified potential neighborhoods you have located and call/write them direct seeing if they want to sell directly to you. Utilizing a lawyer to draw up the legal agreement could allow you to save on fees and use the money towards any repairs. Please keep us updated so we know how it goes for you!