All Forum Posts by: Brian Ellwood

Either a HELOC, or just do a cash out refi, or sell it and put proceeds into a 1031 exchange.

Great post - one of my first mentors told me "with every deal you do, make sure that you have MORE THAN ONE exit strategy!"

So if you're doing a flip, that thing better double as a rental if it doesn't sell. I'd personally want to do cheaper/lower risk flips if I were a flipper right now. Where the rent/price ratio was such that I could easily turn it into a cashflow positive rental if needed. 

Hey man! I don't do trades like that but if you give me more specifics on exactly the areas you want to learn I can definitely point you in the right direction or send over any resources I have. 

That deal sounds skinny on the surface - typically you do ARV x .7 minus repairs, and that equals the max you can pay, and builds in a profit for you as well as holding costs. If you tie it up, you need a due diligence period to really dial in the repair estimate with your contractor, as well as talk with realtors about the ARV and get closer on that as well.

Hey Robert! The answer to that question is always "help your mentor achieve THEIR goal". When I first started, I helped my first mentor find 8 deals that he bought (I went out and hustled and talked to sellers for him). 

Not only did he pay me 1K finders fees for those, but he constantly taught me and invested time in helping me grow as an investor.

So start by asking your mentor what would be most valuable to him.

Hey man! What are the rough prices for duplexes where you live? And approx what would each side rent for? Trying to determine if it would be a cashflow positive situation or not. 

Regarding bankability - you usually need 2 years tax returns, but you really never know until you schedule a call with a banker and talk through it. A lot of people wonder about their bankability but haven't actually asked a banker - I'd get a call on the books and let us know what they tell you.

The answer won't in any way stop you from investing, it would just change the strategy you could use in the next year or so. 

Hey Sara - do you live in/near a market that might qualify? That would change things. If you want to invest long distance, I really like Clarksville TN and Huntsville AL. But there's a ton of good markets. It boils down to rent/price ratio, economic diversity, population size & growth, vacancy rates, landlord friendliness, and REI activity.

I wrote a long post about this here on BP you can probably find it through my profile. 

The rules are different in each state in regards to whether you can wholesale properties period, as well as whether you can wholesale a listed property. I'd check with people in NJ about that who are already wholesaling. 

Once you get the 10 conventional 30 year loans and max those out, you can get an unlimited amount of commercial loans (which range from 5-20 years). I know a guy with 600 houses and most are on 5 year balloons. 

Most deals that have been sitting on the market that long are definitely not good deals (at the price they're asking), which is why it's just sitting there. I'm guessing I'd want to get that house for probably around 70K for it to make a good investment property, since it needs a good bit of work.