All Forum Posts by: Andraise Scott

Thank you all for your feedback!  @Account Closed , I am primarily looking for holds in these properties but, if one came up as a perfect flip opportunity I would consider that as well. To narrow down my question, I guess: Are there any temporary sources of funds, other than private money, that could be used for cash purchases? Regardless of the type of sale, foreclosure, auction, MLS, FSBO... a cash purchase sometimes is the only way to have a good chance of getting the property in a competitive market or at a deep enough discount. Paying the interest on a temporary loan to be able to buy with cash can be worth it. Am I missing someting with this line of thought? I can qualify for a loan whether personal/pers-comm thru my LLC. I just don't have any private lenders in my pocket right now. So, I'm just looking for 30-60 day loans.

@Justin B., way to go man!  Not only for this incredible deal but for the nine others as wel! I too am VERY interested in the 5% down though.  All I keep hearing from lenders Is 20% down for investment properties.  If you or anyone else has a lead on 5%, 10% or even 15% money I would love to hear it!  Please do share if you would.

Hello BP,  I'm interested in a property that's coming up on an auction on the courthouse steps.  The auction requires a $25k deposit and the rest in cash within 10 days.  I'm interested in this as a hold property.  And, worse case scenario I could move into it myself and rent out my current home which I'm planning to do anyway.

(Here's where I'm a bit gray on this, and other, auction purchases):  I have the money for the deposit.  But, I don't have the rest of the funds to complete a quick cash purchase of unknown numbers until the auction ends.  The properties that I consider in these auctions are rent ready, or close to it, and finance-able which of course is ultimately where I want them to end up....perhaps even with some cash out to get my deposit back to put in play for the next acquisition.

Is hard money the only answer here?  If I just need cash for a cash purchase for 30 days  or so until the bank funding is settled, where can I get that and at what typical terms?  And, can someone please give me an idea of the steps I would need to take to complete such a scenario?  @Ned Carey I think you've had some experience here.  I would really appreciate your input.  Thx in advance BP!

 That makes sense Sue.  I appreciate the feedback.  I think I'll give it a shot!

@Rob Kulp, I'm sure most people will start with "it depends". Because it does. It depends on your friends REI goals. Is he looking for long term hold properties, cash flow short term, flips or what? As a newbie, he might benefit from the security of not having a note to pay on a first property while he's getting his feet wet. What types of deals are best In the area he's considering also plays a part.

But, why not split it and do a little of each if possible.  Buy one with a mortgage and another one outright.  Don't forget the reserve funds needed for each as well.

Thank you @Account Closedfor that input. It is very helpful. I'm primarily considering the purchase of individual condos/SFH's in these developments and renting them. The demand does seem to be high and units are hard to come by in some places. I would guess that a more mature tenant in/heading to retirement would, in theory, be a little less hassle. Turnover is probably low as well. I'm curious also, however, about potential problems with tenements whose benefits run out, have medical issues and can't make payments or who pass away and having to deal with estates, probate, etc. Any insight there?

Does anyone have experience with deals in these communities?  Care to share your experiences, pros and cons?  Please do share.  I'm considering a couple of properties to hold and see some potential flips as well.  Thx in advance!

Thank you @Wayne Brooks for your input. HOA may not have to get the flood insurance but it will limit them to cash buyers only. So, I think they're considering it now. Hope to get this settled soon.

BP, I need some advise here:  I have a contract in on a condo in CT.  All was going smoothly with underwriting and actually ahead of schedule....until!  The processor called and said I needed to have flood insurance on this 2nd floor unit.  Well, the current owner of the unit doesn't have it, never has, other unit owners don't have it and never have.  In fact, no one in this 12 unit building has ever had it.  There IS a small river near the property.

They checked again and double checked and came up with the same conclusion.  I immediately contacted my insurance agent, purchased a policy and submitted it.  All was good again, until .....

All other conditions were cleared. The lender said that they could not release to close until the building showed proof of flood insurance on the master policy. The property manager was contacted and made aware of the situation. Apparently, he said he had no interest in the HOA purchasing flod insurance. He has since been unreachable and the whole deal is on hold until they get flood insurance. Meanwhile, at least one other resident was contacted directly by her mortgage company and was told that she now needs to have flood insurance which she did immediately purchase.

The sellers attorney and my closing attorney are apparently both trying to get to this guy.  But, is there anything else that can be done?  It's also messing up other potential deals for me since I can't move money until I close this one. What can i do?

@Rahdia Green , Perhaps you could ask around and check Craigslist to see if you can find a seller financed deal on a car.