All Forum Posts by: Benjamin Pflaumer

@Dave Spooner thanks for replying. For my application I just planned on using one I could find online. Not sure if you would recommend this or not. But if I do find a form online would you recommend for the prescreening requirements that I just type that up on my own and make it the first page of the application and like you said have them initial or sign that page as part of the whole application?

Thanks!

Hello BP, 

I am working on getting all my documents and services lined up as I will be turning my first property into a rental in the next few months. After much research I have come up with what I want my pre-screening requirements to be. My question is do you list this pre-screen requirement on the application anywhere? If not, do you just make sure all potential applicants are aware of the requirements via the ad or posting online? 

Thanks!

A question for all investors who own SHF. If you have a property that has a yard and driveway in a region that sees all 4 seasons is it better to have the tenant handle minor landscaping such as cutting the grass and shoveling the snow or is it better to hire a landscaping company? If you hire a landscaper is it better to get quotes before purchasing the property or just get a general idea for cost of landscapers in the area? Any and all advice would be appreciated. Thanks!

@David M. with each response it is making more and more sense. This made me do a little more research on cash out refinancing and I would say I know understand the process much better! I really appreciate you responding and helping getting the wheels turning on this for me!

@John Sledge thank you for your reply. In my thought process I hadn't given much thought to the ARV and what competitive comps in the area would be. I am glad you said that I might have over looked or not thought about it as much.

@David M. thank you for your reply. The process does make more sense now. And just a quick follow up assuming you had to take out some kind of loan for the renovation would you use the cash you got back from the refinance to pay that loan off? I’m sure there are many factors that would play into but looking at the big picture. 

Hello. I am hoping I can get some clarification and explanation on cash out refinancing. From what I have read and heard investors speak a lot about buying a property, doing some renovations and then doing a cash out refinancing. This concept this has me a little confused. It always helps when there are some numbers involved. 

Let’s say the property is $100K. Investor puts 20% down and gets a mortgage for the rest. Investor puts 30K of renovations into the property. This is where I start to get confused. I would assume now the property would be worth at minimum 130K. When doing renovations does an investor always have to have the cash on hand to do the renovations or are there loan options? Does the lender giving you the loan on mortgage also able to loan you the money for the renovation? Once the renovation is done, from my understanding, you go back to the lender and ask to refinance the property for the new appraised value and if there is a positive difference between what you own the lender and the new value the lender will give up to certain percentage of the cash?

Any help on helping me further understand this would be greatly appreciated. 

Thanks!