All Forum Posts by: Ben Fernandez

@Kerry Baird These are renovation loans traditional lenders sponsor to help homebuyers. These loans allow buyers to purchase and renovate all in one swoop. The partners between a realtor like myself (proficient in renovation experience), a general contractor, usually a loan consultant to support the buyer and the lender, (along with a buyer and seller of course) are the parties involved.

I come across so many homes perfect for 203k or HomeStyle buyers, on and off-market, it isn't funny. I do my best to be the intermediate between the consumer and the seller, simply by bringing awareness to a buyer's potential. I think most people have no idea about theses products.

In these times of tight inventory, I've been promoting for years that buyers should consider these types of renovation loans, or to buy new builds. These are two ways you could solidify your equity. Passing up something that would allow you to make it your dream home isn't necessary. You just need th right partners.

I say, if you're buying flipped homes anyway (which of course people are), why not do them yourself...Especially if you're waiting on the side lines letting time pass you buy. 

I'm a licensed realtor in PA with renovation experience for anyone that wants to connect. What I'd like to do is help homebuyers achieve down payment assistance, use a 203k or HomeStyle and potentially house hack as well. That's what I call the ultimate trilogy. Helping people " make your next move your best move".

Is anyone using the 203k or HomeStyle loan locally to help homebuyers? Especially during this time of challenging inventory issues...

Oh lol...so you know! "Lankisster..."

Interesting. I'll have to give that a try to see what it spits out. Thanks for sharing!

Foreign LLCs will cost you more from a fee perspective. 

Tax basis will relate to your filing status and entity structure which is best spoken to by your attorney and CPA.

If setting up by yourself, you'd risk anonymity concerns which relate to asset protection. If you aren't going to set up the LLC correctly, for asset protection structuring, you might as well buy it in your personal name. It'll be cheaper financially.

Gotcha...I like your goals utilizing the lease option. The connection to the other business ventures is interesting. Even if you don't find someone able to chime in on that niche, you sound creative enough to make it a success. Keep up the good work.

Only entertain this if you feel you can perform.

A lease option will require a down payment, more than likely, followed by a balloon payment upon a payoff due date. If you default, you'd lose all that has been invested in the property. If that is the case, just let them take it to market to sell.

You could offer to manage the property and have them to rent it out now where you pay them a flat rate every month and anything you make over that amount is yours to keep. This could allow you to buy time to get your financing in order and buy it later.

Just be sure to run a cash flow analysis so you know whether it will cash flow based upon its current expenses. If you need a tool to help you with that, feel free to connect.

I think it depends on the deal that comes your way.

If you can find a cheap plot of land that's buildable and the profits exceed a potential flip's (you could also acquire), go for the build.

Vice versa. If the flip is more efficient, and delivers a better profit, go for the flip.

Notice, I made hence to efficiency. That is a thought that's in the back of my mind regarding all the red tape you may encounter on the building side. Keep in mind, time costs. So a flip and a build with the same profit margin, but one is less time arriving to the goal, the shorter time span option is the better deal.

It's always worth doing something you're passionate about. Go for it.

Just don't sign up with a brokerage that will charge you monthly fees.

You sound like you have a lead source through what you do as a firefighter and you should follow your first mind and become a direct source for those people your getting acquainted with and building rapport. After all, if you can't service them, you could refer them to another agent you trust and earn a portion of the commission.

You need to get licensed. These would be simple referrals.

Otherwise, wholesale them for a flat fee. Either the owner can pay or the buyer. However you structure it. You could also sell the lead to another company/person. There's plenty of people ready to pay for hot leads.

If those aren't options, and you are focused on owning them, seller financing, subject-to, and lease options are the only remaining options.