All Forum Posts by: Ankush Ratwani

@Bill Goodland

Exactly, the SoFi loans counts as unsecured.

@William Lees

Delayed financing is a way to cash-out refinance before the 6 month mark. It's part of the Fannie Mae guidelines that you if you do a cash purchase with no loans against the property (HML) you can immediately get back 100% of HUD or 75% LTV, whichever is lower. If you throw your rehab on the HUD, meaning you pay for it upfront, you can get your entire purchase and rehab back as long as it's less than 75% of the ARV.

Don't forget personal loans like SoFi and Lending Club. I know someone who got a personal loan from SoFi and used it to help with a cash purchase. No points and 11% interest for 5 years. You can also do delayed financing with this which you can not do with a HML.

Question for all the great minds on here. I am planning on doing an all cash delayed financing deal in the early spring of next year. My plan, like most of the recommended delayed financing methods, was to pay all cash with the added rehab put on the HUD-1 and then have the lender finance 100% of the HUD-1 when a tenant was in place. My question is, is it possible to have part of that all cash offer funded by a hard money lender? With time-to-money back in about 10 weeks I presume it seems possible, however, I not sure how that works with me getting approved with the lender for my delayed financing. Other options include saving up the entire amount, partnering, or private money.

Thanks!

@William Matory

I think that’s a great point to rehab up to what the tenant needs and not what you would want. At the end of the day the trend seems to be to rehab up to comps and what’s in the class of neighborhood but not to go much beyond that at risk of getting the same appraisal for more money sent.

Congrats Cherie! I'm looking to do my first BRRR soon. Did you use any creative financing to come up with the initial cash for purchase such as private lending or hard money?

Does anyone have experience using a physician loan? I've heard mixed things about the down payment. From most I've heard you need to live in the property to get the loan. Would you be refi the same way with this type of loan to complete a BRRRR?

Welcome Adam!

I am also starting out on my journey and I like the having money work for you rather than trading your time for money. Straight from the words of Rich Dad Poor Dad.

Have you gone to a local real estate meeting yet or REIA? I'm going to go my first one tomorrow and I hear it's a great way to network. Like you I am limited on time as I am a physician, without the family atm, and would like to start small with a single house hack, live and flip or out of state BRRRR. For me I would have a property manger involved even if I own one property and factor that into my numbers.

 Daniel, I will PM you with details. 

Thanks everyone for the warm welcome

@Michael Ealy The truth is always better than lies. I've heard the same thing about of out of state investing as a starter and thats why I am cautious. I think seeing how a BRRRR actually goes down in my backyard may be a good way to start to understand what goes into the rehab, seasoning and how the cash out refi really works. I've always been a fan of the working for free method in the beginning to gain experience (i'm a resident physician and have been doing this for years essentially). I also like the idea of a partner to bring in capital and experience. I have contemplated the idea of a hard money lender in the beginning which may not be the best way to go right off the bat. At the same time as my out of state investment I was going to buy local FHA multi family and house hack which may be better to invest my time into first.

@Armin Nazarinia Thanks for the quick reply buddy. I'm actually going to my first REI meetup this Thursday in Ballston Virginia. Asking contractors would be a great idea to get a lay of the land. I think materials vary by location, but I will start getting an idea by asking local investors what they pay for things in my market.

@Cassidy Burns Thanks!

@Tim Swierczek Thanks for the advice Tim. I think you are right that books can only get you so far. Finding a mentor will be important to understand all the fine details with the process. 

Do you guys have any good book/blog recommendations in terms of rehabbing and flipping?