All Forum Posts by: Ryan B.

Your gonna score more with consistent base hits than occasional home runs.

I have a certain level of cash I like to keep in reserves for the rentals. But once I can scrounge up enough extra cash I'm itching to buy another property. I am getting ready to close on a REO in 2 weeks. Just looking at it from a purchase standpoint it was not a homerun (asking price was $18,600 and I got it with a final bid of $20,000). What made this one special was the bank is giving me a construction loan up to 85% of the ARV then allowing me to refinance into a regular portfolio loan with them. If I do everything right I will have not spent a dime of my own money on the property.

I will take deals like this as much as I can. Besides cocktail parties aren't my thing, I prefer a cold sixer in a friends garage.

I don't think it should be required. I can say though when I am scanning through a topic I always slow down when I see an avatar of someone I remember.

I agree that most of these flip shows are just a joke. I remember watching one where an investor kept telling the sub to do all these shortcuts and the sub was telling him it should be done correctly. The investor's response was "I don't care, I'm not gonna be living here". That takes you straight to d-bag level in my book.

I always really enjoyed the one will Richard and Trademark properties in South Carolina. I don't remember there being a bunch of drama crap on that show.

Read and re-read as much info on this website as you can until your friggin eyes hurt. There is no guru book out there that will teach you as much as everyone on BP can.

David,

I try to stick to where rent is at least 2% of purchase and rehab price. I think they do split it up into the income and debt components because in the past my rental income has been included with the income from my regular job. Then on the debt side, PITI is included as a debt.

Thanks for the advice, I thought maybe I was just completely blind to something.

I have only been a customer with this bank for 3 years (the only rental property I have with them I just bought 4 months ago). I have our home loan and the one rental property through them along with all of our personal and business accounts.

I plan on purchasing as much rental property this way with them until I hit my DTI threshold. Since I have a full-time job I do not take any cashflow from the business accounts. When I hit my DTI threshold, I will just pay off one of the loans as fast as I can with the cashflow and repeat the process.

I use a very small local bank for all of my personal and real estate business. I was talking to the loan officer the other day about purchasing some more rentals.

She offered me a construction loan to buy and rehab houses. I will get the first draw to purchase the property, and then 2 other draws during the rehab. At time of purchase, property will be appraised using my repair estimates to obtain an ARV appraisal. They will then loan me 85% of this ARV.

After rehab is completed the appraiser will come back out to make sure I did all the rehab that I said I was going to do. The bank then refinances property into a normal balloon loan they do for investors.

I then essentially have a good rental property with nothing out of my pocket except for closing costs (which with this bank have only run me about $750 with the other deals I have done with them).

What am I missing here or is it just a good deal? Is anyone else getting offers like this?

Hey Will, I am guessing it really was a crap shoot. :mrgreen:

Sorry I couldn't resist, the 10 year old boy in me came out.

I have some low income property and yes it can be difficult to find good tenants, but they are out there. The #1 mistake you can make is trying too hard to fill a vacancy and accepting the wrong tenants. Just stick by your guidelines and you will find someone. No matter what, do not let someone move in without deposit and first month rent. If they can't come up with that, good chance they are not going to be paying rent in the future.

Rusty is correct I was pretty much explaining the "cliff notes" version of it. I didn't pull a permit to do it either, I agree it would probably be a waste of time and money for the permit.