All Forum Posts by: Blake McWilliams

 Thank you Max!  I'm familiar with some of these but not all.  I'll give them a look!

 Hey Zach!  I believe the answer to this would be dependent on your long term goals.  It sounds like the risk could have some decent risk involved.  When you say break even, do you take in to account cap ex and maintenance at higher than anticipated amounts for the finished side?

In my experience, properties typically underwrite slightly better than their true performance.  If I were to look at this property, I would want to know I could make the mortgage on my personal income (or rental portfolio) if push comes to shove.  

There's no doubt there seems to be upside in the deal, but can you ride the wave in the meantime?  

Hope this helps!

 Hey Candice.  I do not handle assumptions unless its for a client of mine (I'm a realtor).  I highly recommend just calling your lender and asking to speak to their assumptions department.  They'll be happy with the transparency.  Cheers!

 Hey Ashley! Congrats on your first house hack going so well.  Out of curiosity is there a reason you do not wish to repeat the process with a new purchase?

Typically, in my experience, lending requires 20-25% when you will not be living in the property.  I have seen individuals take a lien in the secondary position to decrease that downpayment, but you would most likely need to use a good lender who would be comfortable with and allow a secondary.   

Another amazing option is using creative financing directly with the owner.  I personally have found an abundance of deals where older landlords no longer wish to own but do not want to pay the capital gains tax.  These are ideal opportunities to offer seller financing.  One downside to not having a 20% equity hold, per my attorney in Illinois, in the event we miss a payment (we haven't and hopefully never will) the owner is able to actually use the eviction process rather than a true foreclosure.  That's why even with seller financing I find a way to hold a 20% equity hold position.   This could be different in your state, always check with your local attorney.  

Cheers!

 Hey Rowdy! Welcome to the BP Community.  It is a wealth of resources and knowledge.  

 Very interesting that took so long!  We did one in 60 days with Veterans United.

 Hey Brad!  First of all, Welcome to the BP community!  This is an incredible community and I'm sure you'll find it helpful.  It looks as if you are considering distance investing as your first investment.  This can be a good strategy; I say this with one large caveat.  Build your team before you buy!  

Investing in a new market even as an experienced investor can be quite challenging.  Things I personally try to build before breaking into a new market.

1. An operator who will partner with me on deal 1.  When I say operator I truly mean it.  Anyone can buy real estate but you want someone to partner with who's drive is unparalleled and is creative enough to pivot in the event numbers get tight.  

2. An investor friendly Agent. You do not have to know all the ins and outs of a new market but you should interview multiple agents who invest in that area.  Between your operator and agent this will be your boots on ground.  

3. Tradesman.  Even when not doing a rehab property, every property will need maintenance at some point.  I highly recommend interviewing multiple contractors and ask them for references.  This can be your largest pain point if you are not thorough.  

4. An incredible attorney located in the county I'm investing in.  Every state and county can come with different legal challenges and having a great attorney who's versed in real estate can be a game changer.  

I also like to tell first time investors to attempt to find a turn key property for number one.  Rehabs can have great upside but the risk when education is low can be detrimental and burn you on investing before you hit your stride. 

All in all, remain flexible and keep pushing forward.  There will be setbacks but as long as you can creatively pivot, you'll do great.  

I currently have a few great deals in my pocket if you have interest in the midwest.  

Cheers!

Hey Candice! The VA loan actually offers loans to be assumed. You will have to call your lender and ask to speak to the assumptions department. Once, there they will require you to apply to assume the loan. They can walk you through those steps.

If it's a matter of removing him and not an assumption and they are asking you to refinance; you may look at moving the property into a trust.  Talk to your attorney, but I believe this can help not enact the due on sale clause.  

Hope this helps!

Can you send me the deal?

 Hey Marcus!  Completely anecdotal and just talking out loud here; but, would you consider this to be more of the market getting back to what should be considered normal?  Our normal market cycle in central Illinois is 6 months of supply with a 90% lp to sp ratio.  We have not seen this since pre pandemic.  We currently have 2 months supply and it is leading to home prices continuing to outpace inflation.  To be honest I would be very happy in the above scenario because it should lead to better opportunity for a buyers market and negotiations.   

Thoughts?