All Forum Posts by: Tsipora Smith

@Brandon Hall no problem, glad to be helpful

I typically do cash out refis for my Texas clients. 

I'm not sure about the laws where you are but in Texas wholesalers do not have to be licensed so we always say trust nothing. I verify everything with outside sources such as my contractors, real estate agent, PM, etc. In addition, make certain it's going through a title company. Contact the title company to make certain they're on the up and up and only send money (earnest) to the title company. 

Just a few suggestions I can think of off the top of my head for you....

1. Hard money lender that lends for 1-5 yrs

2. Partner (with the folks you are wholesaling to)

3. Investment mortgage

If the property is mid-century modern, that look is actually pretty on trend. I would paint the beams black to modernize it a bit. I recently did that on a flip and received rave reviews.

With all do respect to that lender, they are either misinformed or their company doesn't offer the product you need. All 1-4 properties that will be inhabited by the owner can go for 3.5% down with FHA. As far as not having enough job history, by any chance did you recently exit college or the military because if so we can overlook the short job history.

May I ask what's your exit strategy? I typically use the person who will be in charge of executing my exit strategy for oversight. This person has a vested interest in the rehab process going smoothly and finishing with quality. If I'm flipping then I let this be the agent I plan on listing with. If I'm renting then I'll use the PM.

@joshua 

@Joshua D Velazquez I would say long distance investing being less safe depends on what you think you could do differently if you were close to the property. You would still need to screen contractors, property managers/tenants all the same. Either way you'll need a strong team who you are depending on. I think proximity just appeases people's minds but it isn't truly safer. As long as you learn the market you're investing in and have  strong team with checks and balances, it's all the same.  

I would handle this like a seller finance deal which means the title company will close the transaction. At the time of closing you will provide seller with $3k and receive title but he will become the lien holder on said title. The lien amount will be for $77k. In your contract with the seller it should say no payments for 3 months with a balloon payment at the end of the 3rd month for the $77k. However, in my opinion I would look to try to get more time because appraisals are coming back slow due to COVID plus you want to always give yourself oops time. 

Yes, we do check this sort of thing. But if you're willing to put down up to 20% you could simply purchase it as an investment property or second home with a traditional lender no problem.