All Forum Posts by: Benjamin Z. Pickens

I am shopping around for a loan on my first investment property in SC. I managed to find a lender with a decent product (SAFE Federal Credit Union). However, they only loan 80% of the purchase price for investment properties. Maybe I am missing something? If the purchase price of a home is $100,000 and needs $20,000 in rehab, they will only lend me $80,000? First issue is, it doesn't even cover the entire price of the home. Secondly, I'm left paying rehab costs out of pocket. Aside from that they seem to offer decent terms with 20% down at 7% interest for 15 years. I just feel like they may be losing out on a lot of business due to the 80% rule. Has anyone else used this lender? Perhaps I misunderstood the 80% rule? 

I found a for sale by owner in my area. I sent a text message to the listed phone number with an out of stated area code. I received a phone call back almost immediately. Caller said his name was Andy. He said he was living in Florida and had bought the property from someone who had some personal reasons for getting rid of the property. So I go to the assessor's website for the county to research the property. Turns out "Andy"  is not the the listed owner of the property. Also, the owner's address was a P.O. Box that belongs to the local sheriff's office. 

I called the Sheriff's Office and reported it. It is most likely a scam. I say that to say this: It is highly beneficial to perform due diligence to the greatest extent. I am new to investing and learning things everyday. Just thought I would give some insight for others that are just getting started. 

Navy Federal Credit Union will loan as low as 10,000. The full amount must go towards purchase price (rehab costs cant be financed). I am in the mortgage process with them currently.

Is a title search as simple as approaching a title company to reseach the title? Or is that something I can do on my own?

I am doing some due diligence on a property. Just thought I might get some opinions. I am looking at a property that sold for 10,000 in 2008 and the current owner purchased for $0.00 (Acorrding to county records). Asking price is 39,000. Owner states house has no major issues currently (will be getting appraisal and inspection) only,cosmetic repairs may be needed. Currently has tenants but will be moving by the end of the month. Owner wants 10,000 down on land contract. I will have 13,000 in funds available without borrowing money. (Tryon to avoid borrowing on my first deal) Just curious what others may do in this situation. 

Sure thing! I have a few properties I'm looking at. Here are the details on a couple.

Property 1

Triplex

Rent: 550-800 per unit

Asking price: 79,900

ARV: 78000

Rehab: 0-1,000 (currently rented so im assuming minimal work needs done if any) 

Propert 2

Duplex

Rent: 650-800 per unit

Asking price: 49,900

ARV: 63000

Rehab: 0-3000 (current owners recently cleaned and painted both units) 

I will have about $13,000-$15,000 for a down payment on a property of my choosing. I'm concerned. If I use the full amount for down payment on a decent property that needs minimal work I am left not having funds for closing. On the other hand if I make a cash purchase Which will need work I have no money for a down payment on a rehab loan. Just looking for advise on which route would be best. The purchas would be for a rental property. This is my first REI experience. Thanks

Welcome to BP! I have some questions about wholesale. Can I PM you? 

I've started working on deal and wanted to get some input as I am new to this.

2/1 with 1,126 sqft. Asking $19,000 but in need of repair. Listing agent said I could get the home for "seriously less" they are offering special financing. 2.9% interest with 20% down. Zestimate is 28k.

A couple of questions:

How do I analyze cost of repairs without viewing the property?

With such a low mortgage payment and a low ARV would it be more beneficial to buy and hold or flip for profit? (rent in this area is 750+ per month)

Use your money to fund the better of the 2 deals. Without knowing what the second deal is it sounds like the one you laid out is better. Cash buy means fast closing(I believe). Additionally, you are essentially walking in to 35K in equity with the gap between purchase price and ARV. Re-negotiate 2nd deal (you still wanna deal but only after the other one). Then cash out re-fi or HELOC to capture the second deal.