All Forum Posts by: Will C.

@Larry Spradling

Was the loan through the turnkey company itself?

@William C.

"It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

For your example and assuming all numbers are good with no surprises, I'd do what I could to lock up the deal. I like the answer above and offer 100k with escalation to 110k.

@Carlos Vega

Several things working against you here. ARV lower, over budget rehab and maxing out your CC's. What is dropping the ARV now since your initial analysis? In reality with your new ARV, you have no equity to get out. Most cash out refi will be at 80%ltv max. You also need to be cautious maxing consumer debt as that can negativity impact credit big time preventing any refi.

I agree that you will need to sit back and regroup, this will take time. I would do bare minimum to pass those inspections and start generating income. Cut that 8k rehab in half if possible. Do the windows NEED to be replaced or you want them replaced? Time to make sacrifices.

@Anthony Fecarotta

Don't take out new credit during mortgage process. As others have said, you can and most likely will jeopardize the mortgage loan. You e been paying the high interest already, what's another few months wait gonna hurt.

@Mindy Jensen

Bad stagging aside, why would they do all that work to the house and leave the moldy looking, water damaged wood ceiling in the basement?

@Ericka Grant

You could go option 2, payoff and save on your current interest costs, and be better off than you are now with whatever your cash is generating in savings. You will have allot of money tied up in this property though.

You could rate term refinance to get best rate on what your currently leveraging. Still paying interest but any loan product you pay interest up front. Might be able to find a lender to refi what you currently owe and throw HELOC on remaining equity that has appreciated.

HELOC will only charge on what you borrow but higher, variable rate. Typically only good for short term leverage.

Rates are still historically low so now would be the time to lock in. Sounds like your putting alot of emphasis on avoiding higher monthly costs and fee's, probably one reason why you have stacked so much cash, kudos. But as others have alluded, you could invest in other high yield vehicles to cover those costs and some.

Regarding other investment vehicles, have you thought about becoming a HML or something with crowd funding?

@Codi Clausen

Other than the water issues that typically plague basements, you want to be cautious spending money to finish basements. I've heard there are rules that determine whether the finished area in a basement can be counted in with the total finished sq/ft. May be regional.

@Anthony Wick

I've only heard of horror stories with home warranties.

@Nicholas Munford

Well your not holding two loans at the same time. The refi pays off the 1st. Yes, buying cash initially gives more buying power and usually you get better deals. That is the ideal way if you have the capital.

@Kevin Shaw

I know a couple of people that invest in those areas. Just like anywhere, it's block by block. Hopewell is a little more forgiving but also pricier. I'm a small fish in a big sea but let's connect.