All Forum Posts by: Angie Castro

I agree with Kevin!

Hello! 

I recently got the opportunity to purchase a subject to deal with a VA loan at 2.6% interest rate. I'm very excited to move forward but is there anything that I should keep in mind? It's a hybrid deal because the seller will also do seller financing for $83K of the equity at 0% interest rate.

Here are the numbers:

PITI (VA Loan) monthly payments of $1,203 with a loan balance of $203,000

Seller financed at 0% $83K with monthly payments of $300

Total monthly payments: $1,503

Monthly rent: $1,950

Down payment: $35K

The house was built in 2005 and it's spacious. It doesn't need any repairs just to change the living room carpet to LVP. Roof and HVAC are in good condition. I'm very excited for this deal but what should I keep in mind from a legal standpoint? I know SUBTOs are not for everyone and there is a level of risk. I'm okay with the risk as long as I understand it. Any recommendations? 

Hey Alec! 

I love going to the CLT REI meet up in Heist brewery. That one is planned by Jarret Jackson I know he posts it on his Instagram. Also CLT Buyers monthly meet up is fun. I know their next one is on August 8th at their office. Both are pretty informative and easy going.

Hey Carol, DSCR will not cover the rehab only the purchase and the home needs to be considered habitable to pass the appraisal. Only loan that would cover your rehab is an FHA 203K (primary residence loan) OR hard money fix and flip loan and you would have to refinance later. I have seen some hard money loans for rentals that can cover the rehab but the rates and terms are terrible.

 Hey David! wholesale friendly attorneys: Sperry & Hatley (Michele or Cesar) they can also help with novation and double closes. Harry Marsh Law (most used by wholesalers) He has a copy of sample contracts in his websites that are easy to use when starting. Montgomery & Hart, reach out to Christina there. 

Hello! I think Zillow rental manager is a great tool to manage your first rental property. They have screening built in and it's free to use for landlords. My only suggestion with Zillow is to TRIPLE check the persons Identity (Have them show you their driver license during a showing), Call their last landlord, and call their employer. You will get a lot of applications but be very throughout when selecting the right one. I've had multiple scammers and people committing identity fraud in Zillow but I have also found wonderful tenants so just screen well and if anything seems fishy then it most likely is! 

Omg Alecia that is so interesting! The bed and breakfast is so cool. We don't hear about those often or as a way to house-hack. I love the way you think. If it was up to me I would be moving once a year!!

 I agree! Wholesaling is a very tough business and there are people out there that give it a very bad rep. There is ethical wholesaling though. One of my first deals that was life-changing for me what wholesaling a for sale by owner house. He knew I was re-selling it to my buyers and was ok with it as long as he got his asking. We closed in a week with no problem and he has referred me other family members. There is a way to do things. The point of this post was to give options. Would love to hear if you have any other strategies that you suggest.

One of the most common questions that people ask me is how can they start investing in Real Estate with no money. I wish there was a strategy that takes no money and some do but you still need working capital for different things. This forum is for the purpose of giving people some options and hopefully hearing from other community members about other options! I started investing when I was 19 years old and have bought multiple properties since then. If you are a person with low capital but eager to invest in real estate here are some options I would personally recommend and I would love to hear what other people suggest!

-House-hacking: You could buy a property with down payment assistant and do different types of house-hacking. Renting by the rooms and having other people pay the mortgage. Save for a year and then primary flip. Depending on your market buying a duplex might be feasible but many down payment assistance programs do not offer credit for multi-families. 

-Wholesaling: You could get your feet wet and get to know how to source deals through wholesaling. It's not technically investing but it can help you increase your savings.

-Finding private money:  If you can find a very good deal then connect with a family member or friend that could lend you what you need for a hard money loan or to lend you the full amount. If you are using a hard money loan you just need 20% down. If you are having someone finance the entire project you can offer wither interest or equity. Interest it's always cheaper but when you are starting people will be more interested in getting equity in your deal. It's hard to have private money for a holding property. Usually you can lend for flips and builds.