All Forum Posts by: Alexander Flores

Any luck finding a lender? I have used some lenders in SC for manufactured homes but have reached my limit with them, I need to find another!

Any luck in Myrtle Ashley? My sister and I are interested in the area as well.

 Hey Martha,

Yes I passed my test the last week of November in 2018.

@Julius Johnson

Are you buying a multi-family to house hack or if it is a single family, will you live in it for about a year before renting out the property? If not, the biggest con would be mortgage fraud.

If you have the cash to purchase, use another way to purchase the property if possible. PMI during the length of your loan and the upfront PMI can eat into your profits.

@Rigo V.

You have a few options. Put the property in your personal name when you refi using a residential mortgage. You will get the best rates this way most likely, then you can use insurance policies to cover your behind.

Find another lender that will allow you to refinance with your LLC and not use a commercial loan but you will most likely pay a higher interest rate at first.

If you buy with an HML and want to refinance with a bank or traditional lender, you most likely will have to wait 6 months seasoning before doing so.

There are a plethora of possibilities to make what you want work, especially by looking here on BP.

@Amanda Scully

We use 10% closing costs and 7% selling fees when doing our initial calculations on a property.

We use an HML and our CC have been 11% and 7% of our loan through them.

I am a licensed agent so our selling fees will be lower than 7% but we use that percent in the case for some reason I do not list the house. 

@Sami Gren

To conduct real estate activities for others, you need a real estate license. You also then need to have an employing broker to conduct real estate activities.

Talk to a couple brokers in your area to talk about acquiring your real estate license. In NJ it is about a 100-hour course that must be taken in a classroom setting and passing the state exam.

I am a licensed real estate agent in NJ and currently building my business plan to start a property management company.

@Gerold Koch

I'd install them right away.

 Sorry to hijack this thread.

Jay, what do you mean exactly to not use HELOC to buy equity in rentals.

Do you mean to use a HELOC to buy a rental property, then still carry the open HELOC and make the payments using the tenants rent payment?

@Jesse Clark

A lot of things are expected but you have to see what is most likely going to happen. Being $40k in the hole is different for everyone since we all have different amounts of cash reserves. Would being $40k in the hole deplete your reserves for your entire business? Do you have reserves for your other properties in case something goes wrong?

Everyone loves the BRRRR method if it goes as expected but that is a risk you have to take. Personally, I wouldn't buy the property if after the refinance it would leave me $40k in the hole because it would do exactly as you describe. It would slow my business from expanding.