All Forum Posts by: Brandon Proctor

Welcome to the site @Derek Bell have you considered using your Va loan? Live in that property for a few years and fix it up while you are there. Once you get orders elsewhere or just decide to move on you can rent it out for the cash flow or sale it. Just my 2 cents, I'm active duty Air Force by the way.

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Welcome to the site!!!

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Originally posted by @Elizabeth Colegrove:

We used my husbands va and it worked out really well! We lived in it and fixed up. When he was transferred we rented it out! The key is To not over fix it up! Remember there is a ceiling on what houses will rent for! We over fixed up our first house, no now we have found out less is more!

Oh that's great to hear that's what I was figuring I should do as well. With you all using your VA loan did you also get a separate loan to do the renovations or was it out of pocket?

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Originally posted by @Brian Mathews:

The danger is if the deal goes bad and you can't pay back the loan (equity) he will lose his house. I would never ask my parents for their home equity or retirement to do something for me. If he has disposable income and wishes to invest with you, that's different.

He does have disposable income but I was trying to learn more about the home equity side of it. I'm just seeing all options that are available for me. Right now my thinking is just using my VA loan.

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Originally posted by @Elizabeth Colegrove:

we are buy and hold. We do short sales because they are under market value typically. On the other hand they have tons of paperwork. We are also buy and hold and we fund through living frugally and using cash flow from other homes. So their lots of options!

Oh ok, question about your first property that you bought. Did you all renovate your main residence while you all were living in it before you started to rent it out? Whenever I do finally pull the trigger on a property (thinking about using my VA Loan) I was wanting to spruce up a few things here and there just to make the property more appealing to potential renters in the future.

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Originally posted by @Tyler Flagg:

Hey @Brandon Proctor

I'm an Air Force guy myself that just started investing about 8 months ago. I've done nothing but conventional loans so far, so sadly I can't be of much assistance to you. However, @Brandon Turner wrote a great book on precisely this topic.

The Book on Investing in Real Estate with No and Low Money Down

The title pretty much says it all ey?

Best of luck and let me know if there is anything I can do to help.

Thanks Tyler, I have listened to the Podcast with @Brandon Turner talking about the subject. I'm sure the book goes into more depth about it as well. Question on your conventional loan, what percentage did you have to put down for your property? Also have you ever used your VA loan?

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Originally posted by @Elizabeth Colegrove:

Real Estate is full of paperwork. The key is to figure or what you want and where you want to go!

Ok thats understandable, right now I want to buy and hold for the cash flow.

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Originally posted by @Joe Villeneuve:

@Brandon Proctor

1 - Hard Money: Don't think of a HML as a loan. Think of it as an expense...like the floors, the paint, the kitchen, etc... The total cost of the hard money is the Cash from the HML itself plus the fees and interest. It's a total cost that you have to count in your rehab cost...and pay back with your exit strategy. Here's the kicker. You must include the cost of the Cash, the fees and interest, as an added cost of rehab. So, if you anticipate a 3 month rehab, your cost of money for rehab (interest on your HML/Cash) is based on those 3 months and is a set amount. If you take longer than 3 months, the added interest is a cost overrun on your rehab. Just like finding out you have a furnace that won't light (after you bought the property), and you have to fix/replace it. HML isn't anything to be afraid of...but it should be respected.

2 - Sandwich L/O: Not enough space here. If you are interested you can contact me privately and I'll be happy to explain how it works.

3 - Wholesaling: This works everywhere...if you have a plan....but not all areas are equal.

Thanks you cleared up that up for me by me now looking at is as an exposes versus a loan. I will send you a PM In just a minute.

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Originally posted by @Elizabeth Colegrove:

You dad would have to do a heloc, refinance, etc to pull the money out. If he gifts you the money their will be tax on it. Have you thought about doing a personal property with little no no money down. Than you could rent out the rooms in your houses. This would allow you to live free while having someone else pay the living expenses

Oh ok, so doing the home equity would consist of a lot of paperwork? Would you say its not worth the effort? I was also thinking about a personal property but wouldn't be able to rent it out for a year or so. I couldn't rent out the rooms because for likely than not I will have a kid in most of the rooms.

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Hi all,

I have another question which I know is mentioned in a recent Podcast about investing with little or no downpayment with Brandon Turner. Question is how does one go about using a family members home equity (dad) to use as a downpayment to purchase a home?

Sorry if I'm not using the right terminology or if I'm completely wrong on how the process works. My dad has been pretty supportive in different endeavors I have taken a part in and with a little negotiating/pleading I believe I can sway him to come on board.

I'm trying to come up with a creative way to find the money for a downpayment for a property. Also are there any dangers that come with my dad using his home equity to help finance my investing dreams? Not even sure if this method is even possible but I would love to hear you guy's input.

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All Forum Posts by: Brandon Proctor

Brandon Proctor has started 36 posts and replied 231 times.

Post: Real estate flipping starter kit

Post: New Member Needs Advice

Post: Using Family Home Equity

Post: Using Family Home Equity

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Post: Starting with little downpayment cash.

Post: Using Family Home Equity

Post: Starting with little downpayment cash.

Post: Using Family Home Equity

Post: Using Family Home Equity