All Forum Posts by: Tyson Hosey

@Steve Vaughan Thanks for being kind in your response haha I'm aware it's pretty far out there, but had to toss the idea around to others. 

Wholesalers. You're used to doing a short term deal for a decent return on your time and leg-work. I have a hypothetical scenario that would go into the category of creative finance.

Buy and hold property for sale off market for 38,000, banks and PML's shy away because of the low dollar amount. HML's typically won't fund a buy and hold transaction. As a wholesale type person, would you take on a short term financing deal for about the same return as a whole-sale deal, but in this case it would involve funding the purchase of a property?

The information that I've gathered from banks, is that they would refinance the property, but they wouldn't fund the purchase. So if the property was purchased, then refinanced then it would be short term funding, decently quick turn around and a decent return. 

Is this far-fetched and kooky, or do you think it would make sense for the right "wholesale investor"?

@Libbie Grant you should check out the BP podcast #109... I'm listening to it right now..and wow it's got a ton of good information about this very thing.

Libbie Grant yeah now that you've mentioned it, I'm probably gonna go talk to NFCU and see what they can do for us. I'm currently trying to get a business loan from a big bank, seems like they might be willing to try for me. But that might be a secondary method. I have my first property in my own name because it was previously my primary residence, but going forward I'm gonna be using the LLC I created.

@Libbie Grant Awesome advice, thank you for sharing the experience. I was pretty sure that they had the restrictions on the "primary residence"part of it. That being said, I'm not completely against using it to purchase a Duplex etc. and "living" in one side of it. I may not be there very often as we're living on base and in a somewhat sketch town, but I feel like I would be able to comfortably list it as my primary residence.

The NFCU option would be a VERY interesting idea. I didn't know they were that lenient, and I wouldn't have any issues talking to them. Are you using an LLC for any of your properties while trying to use VA or NFCU?

My Wife and I are looking through all the different financing options for buying out next (second) rental property. We are looking to purchase either a SFR or a duplex/triplex. Does anyone have experience with using this method of financing?

@John Thedford 

Sure! I think having a site like that would definitely useful. I know BP has a lot of discussion about it, which is helpful because you can hear both sides of it and decide for yourself. 

Do you think in my situation I should be looking more for a PML or a HML?

I'm having a bit of the same trouble. I'm looking to secure a property with private money/HML just long enough to get financing at a small local bank. I don't mind paying high interest to a PML/HML because it would be just to keep the property from selling to someone else while I get the bank to approve it. Do PML/HML's do that? Seems like a hybrid of fix/flip money and long-term (buy and hold) money.

I'm going to follow this discussion. I want to learn about hard money lenders. Not to be one, but to see what all goes into HML. Might help me down the road when I'm looking to use hard money or private money for buy-and-hold.

I'm working on my first deal for a B&H property. It's currently rented and managed by the Property Manager that handles my existing property. They just fixed up the property and placed a renter in there a couple months ago. Everything seems fine to me, but should I request an inspection on the property before purchasing it from them?