All Forum Posts by: Adam Britt

Thank you both @Kevin Romines and @Melvin List. Seems that holding out for 6 months at least is the simplest bet to actually do it that way.

Good evening BP!

There are a few individuals I know who may be willing to fully finance a property acquisition with cash. Once I buy the property, what are my options to refinance with a conventional loan (at lower percentages I hope)? At what point can you refinance? I will "technically" own the property 100% myself as far as the bank knows, right?

Ok so to confirm, they do not allow you to use borrowed money as down payment in either direction. I think I have it. I’ll have to reconsider my position then. I just read about people using hard money, then refinancing. I assumed hard money could be down payment for a normal mortgage but it seems that isn’t the case. I may need to find another hard money lender to get enough for purchase AND renovate costs

Thanks Matt! Yea that was the impression I got. They check back 6 months! Anyone else know about using hard money loans as a down payment? Or should I look for other options

Good afternoon BP! 

I have a question for you all.  I'm still learning, so forgive my ignorance. I've heard the term "love money" and understand it to be money given or loaned from family.  After speaking with a bank, I have also learned that "gift money" as they call it cannot be used as a down payment to obtain financing for an investment. This makes me wonder two things ...

1. When people say "love money," does this only apply when the entirety of the price is covered outside of conventional bank financing? I know for a fact this rule does not count for a primary residence, as I know people whose parents paid 100% of their down payment and closing costs ... if only I could find something to House Hack in my area. 

2. If, instead, I had a family member willing to lend me a certain amount as a hard money lender ... is that also not allowed to be used as a down payment? 

I'm trying to get into this creative financing idea (since my work won't be buying me properties anytime in the next 20 years). I have a few relatives who may be willing to lend me money, but not enough to fund an entire purchase and rehab cost!

Wow, thank you all for the excellent thoughts! 

@Johnny Lynum Thank you for that! Sticking them on my contractor list. Ironic that these guys work on problems nobody wants to even deal with! 

@John Patton I'm certainly starting to feel that same way. 30k in costs for a 50k house ... funny if it wasn't so sad! Not that your property is only 50k but the same issue on this cheapo house would be comical. 

@Bryan Miles Excellent, thank you!  Your name has come up in some other conversations on BP. I may end up talking with you again before all is said and done! 

I would jump in here but my wife has big plans for that day! Everyone could come to Tannehill State Park instead for a Halloween get together!

Thank you both for your thoughts! 

@Owen Dashner That is exactly the suggestion I feel is most popular from my questioning so far! I didn't realize it could be THAT much cost though.  Heck, the house itself is only selling for like 60k.  That could potentially reduce my offer to 1/3 the price to cover such a repair anyway! And thanks for the tip.  Being robbed blind for a house that is falling apart as my first deal would be quite ... disappointing. 

@Mark Byers Thank you for that reference!  I'll have to see if they can come check it out.  Anything more than a minor fix and I may have to run the other way. 

Good morning Birmingham investors! I am new to RE, and as a potential starting point, I am looking at a live-in-flip that may likely have some foundation issues (Bessemer area). Any recommendations on who I could get to come assess the property? Would a contractor or PM work or will I need to seek out someone who actually does foundation work? 
I would love to have a referral! 
Or advice if you think such a house isn’t even worth a look.

Some excellent points of course! I will have to really consider off market. You are quite right here too, there is a lot of competition with much more cash than I have.  I'll try to read up on some additional off-market strategies. I've got a hundred other ignorant questions, but I think I need to try to educate myself before I keep pulling on your time asking things I should already know! 

Thanks for the tip and the new idea!