All Forum Posts by: Travis Sperr

Generally wholesaling would be getting a property under contract and selling the contract or property to another investor for a fee, say $5,000. Some refer to it as flipping the contract or deal to another investor, which is probably what is causing the confusion.

99% of the time when someone says flipping they are referring to fixing and flipping the property.

There are a few variables here as to the type of financing that will work best for you. If you do intend to occupy the property your best opportunity to finance is as an owner occupied deal. You could be helped or hindered by the amount of equity you have in your current home. Because the deal is outside of a typical/conventional property I believe your best bet would be a local bank, especially with multiple parcels. Remember rates are at record lows, an investment property loan might be a 1/2 point higher than owner occ, resulting in a very small difference in the payment.

Good luck on this one.

Bigger pockets will be a great resource to answer a lot of your questions. Ultimately you might search for local networking groups to meet people in your area that are actually doing deals in your market.

Robert,

NOO is non owner occupied - meaning investment properties only

Yes the percentages are the interest rate and interest only

A point or in this case 3-6% is the origination. 1 point is 1% of the loan amount, for a 100,000 loan a point is $1,000. So 3 to 6 point is $3,000 to $6,000

When a lender states the % or ARV they lend that is the amount of the deal they will lend you. If the house is worth $100,000 after repaired, the lender in this case will lend 65% or $65,000. Your goal is to have your deal, purchase, repairs and closing costs total as close to that 65% as possible to limit your capital into the deal.

Underwrite is the process used to make a decision on if the lender will find the deal. In this case the lender states that the asset or property is more important than say credit or income.

The finding fee- hard to say of it is high or not, really depends on the market. It is just a junk fee, meaning it is used to create more income for the lender.

Good luck!

I used to think I didn't want tenants to know if I am the owner of my rentals As I manage them myself. After a few properties I found it more challenging to remember to say "my partner" or "the owner", I don't have an issue with the tenants knowing that I own the property, I treat everyone the same, firm but fair. If you are not doing anything wrong there is no additional liability.

A whole different discussion, but you mitigate liability with proper use of entities and insurance.

Find a hard/private money lender in your area, borrow both purchase and repairs in one loan, potentially no money down depending on the lender and area.

The short answer is yes, very simple with a quit claim deed.

The long answer, that I am sure someone will answer with is by changing title you could trigger the due on sale clause in the mortgage/DOT. The likelihood of the bank calling the note due because of how it is titled is so small, it makes sense to go ahead and do it. In fact I would be willing to bet the chances of being sued are higher. Understand that creating an llc is more than registering with the local/state government. An entity being used correctly needs to include an operating agreement, separate bank account, etc. you will also want to understand how to endorse rent checks, make sure your lease is accurate and your insurance lists your entity as additionally insured.

Good luck.

Longer is always better. But do remember what a tenant intends to do and what happens are not always the same. Also do not assume that someone without pets/children are going to take better care of your property, I have seen it both ways.

Good luck.

Yup Jon Holdman, know that one all too well unfortunately. A learning experience for all involved that only takes once.

"Depending on your market it is fairly simple to put together $10-$15k in passive income before your golden years."

**$10-$15k per month**