All Forum Posts by: Billy Bell

Hello,

I'm trying to figure out how I can buy a property with none of my own money down, since I am picking it up for well under market value.

Here's the details for more accurate advice:

Duplex in Indianapolis, IN.

3/1 each side. Currently rented at $700/per side, tenants pay utilities. 

Fully renovated in last couple months.

Perfect comp a few doors down just appraised at 120k.

I'm picking mine up at 88k.

Conventional lenders are forcing me to put down 20-25% of purchase price even though this will appraise much higher than my purchase price. My purchase price of 88k is 73% or theoretical appraised value.

So how do I find a lender that will loan me 100% of the purchase price and use the built in equity (difference in value to purchase price) as my down payment, so I don't have to fork over a big chunk of cash for a downpayment?

Or is there a refinancing hack I am missing?

Thank you all!

Billy Bell

Hey All,

I have been using Skipio.com to send out a text message blast to my cash buyer database, and it is great in a lot of ways, and not so great in some ways. Looking for other options that might solve my problems with it.

The main problem I have is that it is very slow and sending the mass text messages. I will schedule a "blast" to go out at 8am, but it only sends out one at a time. With having a relatively large list, I am hearing that people are getting the message sometimes a day later. I need everyone to see it ASAP in order to sell to the best offer from my entire list. 

What I love about Skipio is the user interface. It contains all the messaging on the website rather than redirecting to my phone and melting it down with hundreds of replies and notifications. It's a great thing to be able to manage all the messaging on the website and reply using my computer calculator. It makes managing all replies really nice. 

For all wholesalers not using a text blasting service to market properties, you must do it now. Biggest life changer EVER!!!!

Anyways, I'm open to all recommendations for other services to try.

Thank you!

Billy Bell

 What marketing strategy(s) are you using? And how do you research and decide on new markets to move into?

Thanks!

Billy

@J. Martin I'm in for it.

Good Morning Dick,

The grandfather rule stays with the property, therefore is passed on to the new owner. Had the pump and inspection done on current system and was in impeccable shape. My cash buyer that backed out was a buy and hold investor, but just got spooked about this problem, even though it "should" handle the load. The spetic conpanies said they would be a little worried if 5 people lived in there, but 3 or 4 people shouldnt be a problem. It could be a great buy and hold. Cant really find a property that rents for $800 that cheap anymore.

Thank you,

Billy Bell 

Hey Nick!

I am trying to wholesale it. If I had the cash I would fix and flip it for a higher return for sure, but I don't have all that cash in my bank account, hence the wholesaling method. Closing cost and title only come out to 1,200. Taxes per month are only about $100, no HOA. So a flipper could easily make closer to 20k for just painting it! And yes this is one of the nicest homes in the neighborhood and the other nicer comps are in the 70's-80's.

I think investors are just scared of premanufactured homes, for a decent reason, but this one is relatively new and in excellent shape! 

Thank you! 

Billy Bell

Hey Rich, please see my response to you and Bevla above. 

Thank you for your advice!

Billy

 Hi Bevla!

I agree with you and @Rich Nickel, it is a much better buy and hold, and that is what my buyers plans were for it also, he just got spooked about the septic. I would love to keep it as a rental for myself, i just dont have the personal funds or financing set up to do so, especially in such short notice.

Thank you guys for your ideas!

Billy

Hey Danny, 

I was hoping it was that simple also. If we were to get permits, the county would force the 20k job to be done. I already got the seller to lower the price by 5k to allow for the illegitimate tank swsp, but my buyer refused to have it done without permits, which is understandable. 

Thank you,

Billy