All Forum Posts by: Oliver Trojahn

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Can someone email me a wholesale purchase contract that includes assignment to an end buyer for Missouri?

All help would be appreciated.

Congrats!

What method did you use to acquire this property?

I am a KC investor mainly sticking to long term buy and holds in the Lees Summit and Blue Springs areas. I would also like to start rehabbing houses in this area as well. Let me know if you have anything in these areas.

Sincerely,

In all honesty now i would do the following at first glance:
Become a full time investor.
Invest $1,500,000 - Purchase Municipal Bonds at 7% tax free interest = equivalent to 10% year over year return in a taxable bond. This will provide my salary of $105,000 a year tax free distributed two times a year.
$500,000 - since I have so much time on my hands I would consider either using this money to trade stocks daily (scary in this market) or with my 105k distribution and the newly found time I have on my hands I would start investing in long term rental properties and potentially flipping properties full time. I would even consider conventionally financing some of them to really make a dent.

I find myself running into the same issue sometimes. I have yet to borrow from anything as described above, i just wait and save. My word of advice would be to only borrow if you are 100% sure that you can pay the temp loan back my next summer. I will entertain in the future for a deal I cannot pass up, using one of my 0% balance transfer's on my credit card knowing that my year end bonus from my employer will pay it back instantly come year end. So in essence I am getting my bonus early to fund my deal.

Now, with that being said you must know that you will have X amount of dollars saved up to pay back the down payment, rehab etc. The last thing you would want to do is be over leverage for a prolonged period of time. During that time your cash flow will be severely hurting.

Finally, borrowing from your 401k in this market may be a great opportunity for an almost 0% loan if the market stays stagnant. If the market goes down you actually make money on the loan. Again, this is to say you are paying it all back by summer no matter what.

Besides two chicks at the same time?

I would do nothing.

I would relax sit on my *** all day.. i would do nothing.

^^Office Space^^

Matt,

Note sure what market you are in but I just purchased a rental property last year for $38,000 with conventional financing. I used a mortgage broker and my loan ended up with Citi Group. The pre-approval started at 60k, however, we ended up picking the place up for much less. This year we are pre-approved yet again for a 60,000 loan. This time we are using a local bank that will sell this loan to freddie and fannie after they sell it to us. In short, I know BofA wont go that low anymore but many big banks will loan to that amount, Citi being one of them.

I can refinance with a 1% pre-payment penalty within five years. I need to discuss with them more on the max the rate can go up after the five years. I am also unsure if there is a limit on how many of these I can do.

My strategy is to hold for 20 years at least. Which is one reason i do not like this ARM.

I wanted to run these numbers by everyone on this forum to see if this local bank might be the way to go in lieu of conventional financing for our next purchase. There are both pro's and con's to what they can offer(We are looking at 60k max houses for rentals:

They hold all their loans in their own portfolio and 50% of their business is rental properties locally.

Rates are 6.5% 5/1 ARM (ARM ouch!), 20% down, 500 dollars closing costs.

Can include capital improvements in loan amount.(e.g. new roof).

Can Loan directly to our LLC with personal guarantees (this personal guarantee does not show up on personal credit report until you default). After a few properties and five years in we could refinance with them and include all properties in one loan (portfolio loan).

My partner and I are barely able to get a conventional loan. However, I think we just qualified (he bought car which is tilting our debt to income ratio a little and our first rental is shown as a complete liability as we do not have 1 year tax return).

What is everyone's thoughts on this local loan program? I almost think the fact they will loan to the LLC is a deal maker almost, also the low closing costs are attractive. I am excited to see what everyone thinks.

Thanks.