All Forum Posts by: Deyano M.

had to take a break from from our planning, but now we are gearing up to make a property purchase in the fall- closer to winter. We initially wanted to go for a HELOC for the entire purchase of a property, but that is pushing it a little. We are targeting places that are approx. $120-140K and would rehab and sell for $250K. We would be using a family members equity (obviously) which is only about $155K, so we would have to use some low rate credit cards for some of the rehab. We would be pretty much maxing out her equity and the monthly payment would be climbing. We do have some accessible money- savings and other investments, but really only about $15K- we have agreed to try not to tap into that. We are now thinking it may be best to get funding from a hard money lender and use a smaller HELOC for the rehab.

Any thoughts?

not sure if it helps, but we would be doing this as a family project. I have credit score of around 690-700 and my Mother's is over 800. In addition, my wife has a very good salary history. Collectively- (not sure if the buying power of 3 were an option) we have a yearly income of around $180K. Given that my Mother's mortgage principal is down to $90K and house is valued at $250K. My condo does not have enough equity at this point to really use for much. Hope those specifics help...

Hello all mortgage brokers, lenders, and financial gurus!

I am looking to buy an investment property in the $90-$145K range. Initial thoughts were to take a HELOC out with a family member on her home which we could get for around $150K max. Figured most could be used for the purchase, and some for the rehab.

With the softening market, a realtor friend has suggested renting the property for at least a year. The area I am searching in has rental potential. He also suggested traditional mortgages as an option, but we would never reside there- that wouldn't be possible; would it?

We could potentially invest around $10K ourselves although that would be directly out of savings- we would like to avoid that if we can. We have also tried to lean away from taking a loan on our retirement accounts (401K) and anything that would be a poor financial decision. We have several credit cards which could be used for some rehab funding, but that would only be ideal with a flip so we could pay them off with the profits quickly- not a rental situation.

If we were to get a home for $140K, what would be your approach. Any tips/hints we might be missing? We have the money and sources- just don't know what would be the best strategy. If you can provide examples, we would greatly appreciate.

Thanks all!
Deyano

the partnering with a family member still stands. We would each handle very different aspects of the projects.

Yes- the financing I was referring to is a HELOC.

Right now we have temporarily postponed making the first move, but then again, the market is leaning towards buyers. Might consider renting for a year or so....

I also am curious of that scenario ?? It seems as if my business partner and I can easily get personal loans/mortgages. But I wonder if that will affect my own life with credit issues.

If we take out a loan in our names and then transfer the profits into an LLC formed along the way- is that even legal? Or does that even make sense to do that?

thanks Greg...

From what I understand, I should probably start speaking to a CPA and lawyer. My day job keeps me very busy, so I will need some experts on my side...

I have been using forums for about 8 years, but thank you for the tutorial.

You answered only one part of my question.

Have a good day.....

Yeah- I hope some of the experts on here can steer us in the right direction. I feel like I am almost there, but need a compass to sort out the priority of what I should do next....

anyone??

So- I have targeted a few properties that would be ideal for my first flip. I have another family member that will be an equal investor with me. We have discussed forming an LLC, but I don't know if it would be necessary for the first project. I want to do this first project as efficiently as possible.

I have consulted with my financial advisors and they can assist with a loan that would take less than 4 weeks to become available.

Should I worry about forming an LLC first, or start securing contractors?

What about an inspector? I plan to do about 3 flips/year. Is it better to get the team ready in the wings, or just roll with it step by step. I want to minimize holding costs (obviously), I just don't know how detailed I should be at first. I also don't know if I should have a CPA and lawyer ready or if I should wait until the job is moving along...

I would love if someone could point me in the right direction, ie: step one, step 2, step 3....
I know there are alot of options and some can be opinions, but the more advice the better!

Thanks!