All Forum Posts by: Andre Fierro

@Joseph A. I figured this would probably be my only financing option. I do not really know anybody that can dish out large sums of money like that. 

Even though I have good credit I guess conventional is out the question since they wouldn't fund the rehab cost. I thought about unsecured loan but I don't think they would approve anything that high.

Hey @Odie Ayaga great questions see that's the type of things I need to ask this is my 1st time dealing with a hard money lender so thank you for that. What I do know is that we can definitely get the house rehabbed for well below normal cost and fast. Anything else I should be asking besides those questions you mentioned? I scheduled a call with him for tmr want to make sure I cover everything.

Good morning guys!!!

So really quick guys would like to get some feedback from you experienced rehabers. Initially this wasn't even the approach I thought I would take as my 1st project in real estate but after connecting with a cousin I haven't spoken to in quite some time I've come to the realization that it might not be a bad idea to join him in a rehab flip project. Apparently his being doing this quietly :) for quite some time now and his done well for himself. If we move fwd with this deal this would be his 3rd flip. Since he holds a side job and has lived in his properties while he fixed them up he moved at his own pace. His 1st flip he made about 40-50k, his 2nd about same and now his is looking at his 3rd which i am thinking about joining him. Long story short guys, we found a fixer upper in the Morris county area of NJ. My cousin has lived in this area most of his life and knows it really well, the house is in a good area near schools and shopping centers. The house needs mostly cosmetic fixing, siding,windows, floors, bathrooms kitchen etc. Here is the kickers guys my cousin does a lot of the work and has good connections for getting cheap hands to get the house done quick and a lot cheaper in about 3-4 months tops. We then want to put in on the market. His agent his worked with for about 20 yrs got his house sold in about 2 months. 

So guys here is my major concern and please excuse my ignorance if it comes across that way but most of the subjects I have been educating myself on where to buy hold and rent I didn't expect for this opportunity to arise but it looks like a good one and its happening fairly quick. 

So here is the deal guys I had quick conversation with my cousins agent and she tells me we cant use a 203k loan so she puts me in touch with one of her colleagues for another type of "rehab loan"  as she called it. I get a call from a guy who after talking to him found out this was a hard money type of loan. He is offering full financing for the home and rehab cost except for down payment which we would pay 10% down and 10% interest on the loan. The way I understood it is I will only pay 10 % interest on whatever amount I use for that month for the rehab portion of the loan.Now he also said he will open up a llc and I would just pay the state fee. He will also run my credit even though he mentioned I do not need stellar credit which i do happen have just in case you need to know :) He was able to get me a pre-approval letter right away. I mean the guy moved quick (I Also do plan on going over the facts with him again)

Question is what other loan options exist besides hard money??? I mean i have good credit and some savings for down payment but a conventional loan is asking for 20% down vs the 10% down for the HML but then again conventional wont cover the rehab cost and 203k is out question since i am not living it. Essentially I am trying to figure out which is best way to fund this thing???

Today I plan on digging up some of the great calculators offered on the site to run the numbers but here is the jist of it. 

• The home is listed for 100k we offered 132k. Its a single family 3-1. 1200 sq ft.
  

• The budget estimate for the rehab cost is about 70k ,we strongly believe we can get this done for about 50k maybeeee a little less.

• ARV for the home is around 300k, homes in the area are selling in range of 280-330k. We are also thinking of adding half bathroom on main fl which should add some value and also adding heating and coolant.

• Taxes in Morris county avg around 5k a year. Insurance about 1200 a year.

Again guys we plan on getting rid this thing in under 1 yr. Ideally 6 months but only thing that can hold us back is the selling of it more than the actual rehab because my cousin and I are confident we can get this done is under 4 months worst case scenario 5-6 months if we run into unexpected "surprises". Always have  to be ready for this type stuff JUST IN CASE.

@Jonathan Greene hey did this meet up ever happen? newbie here looking to join

hey @Joseph Nelson I am also in a very similar situation as you. I been in the working corporate world for going on 11 yrs now and I need out of the chains. Feel like I am ready , well at least with the hacking method. Just trying narrow down an area NYC is just not doable for a newbie its way too expensive. Any how good luck to you my friend. 

hey Daniel, I am in the same boat.I am very hungry but scared at same time.  I have everything needed to start but just haven't decided what is the best path to take as the initial step. Good luck though in whatever you decide. 

no reply's huh? anyone know if its mandatory to reside @ the property in order to take advantage of the programs available for 1st time buyers?

@Jerid Meagan that is correct. Any markets you suggest?

Hey BP family,

I am currently in the getting educated phase of investing but I just feel like time is against me and want to kind jump in a deal asap. I have FICO score of 750 and about 30K of savings. Before joining the community I was in the process of looking for a home for me and my family. We currently rent a 2 BR apt in Queens and the rent is not cheap here as we all know. I connected with a loan officer who was able to get me approved for only about 275k which might not be too bad in other states but here that is not much, in fact the homes that attracted us where in the 350k + area. After speaking loan officer she mentioned to me that I can get more money loaned if I found a home with a separate dwelling/ kitchen etc, this is what kind opened up my eyes into looking into multifamily homes (besides this forum of course).

Now I am still renting and it burns me to know I can easily be putting my money to good use if I took a different route. The dilemma I have is where (location) to start and what niche/approach to take?. House hack?, live on site and rent in a multi fam?, 1 fam home to just rent? or out of state rental ? I would ideally love to take advantage all the programs offered to 1st time buyers such as FHA, 203k, etc.

Ideally what I would very much like is a multifamily the one concern I have is do I need to reside at the place? I ask because this might not always work because lets say I find a good deal in a area where 1. We do not like. In the sense of schools amenities etc. 2. Distance. Far from our jobs etc.This things will prevent us from residing at the place but have seen good deals in slightly father market such as NJ,PA even Upstate NY, but the NYC area forget it I am lucky to find a multifam that can go for less than 600k if that!.

House hacking- Don't think I can pursue this style since I have a family or 3.

SFH- Might work if I am required to reside at the home since I can just use it for solely that a 1 family rental.

Out State-Could work since we like to occasionally vacation in places such as Florida,The Carolina's etc. Any place  south from NY are can work. Can maybe be used as a Air BNB or something similar. 

I am currently having kind of a hard time narrowing down what style/approach to take and that is why I am reaching out to you experienced investors to kind of steer me in the right direction.  Thanks in advance guys, look forward to hearing from you guys.

Hey Adrien that is awesome I'am in a similar boat myself and actually I think I might be more of a newbie to all this than you are. I am just trying absorb as much information when time allows it. Juggling between full time job/school and a family complicates things but i am hoping perusing a career in real estate will give me some freedom. I too have come across some listing in the Newark area that are pretty much ready to go no rehab needed. The 2 concerns I have are; Is Newark a good area to rent like how would one figure out if the rentals are in high demand? and are you required to live in your rental unit in order take advantage of an FHA or 203k?. Anyhow still trying get more educated on this process before I jump on it. I am just so anxious to start,time can be your friend or enemy. Good luck!

can you find deals on zillow compared to mls? can I just use an agent for a connection to mls listings? in other words how can i gain access to those deals ? I feel like mls might be the better choice for finding deals.