All Forum Posts by: Account Closed

Oh it is very possible. Either become a RE agent or partner with one. Find a property that's on the market but underpriced and that's a value add play. Get a hard money loan/conventional, credit your agent commission to your closing costs and first month (some cases two months) of carrying costs. Within that timeframe either renovate and flip or rent and refi into a conventional mortgage if you go the hard money route.

Hello!

So in your example, lets say your bank will loan up to 70% of the property's value. If your current loan is for 320k and the property is worth 465k then 465 * .70 = 325k. Then 325k-320k = $5k available for your cash-out refi. You'd only be able to pull out and pay back 5k of your rehab money. The numbers aren't favorable for a cash out refi here... 

Two things; one, many banks will lend 80% LTV so try and shop around for one that will. Two, putting 40k in for something that will only increase by 65k is not a great return on your investment at least for a refi. If I were to put 40k into a property we look to have it increase in value by at least 100-120k.

I hope that helps

Personally, I'm against putting more money than necessary. Leverage is a blessing given to us and there's no need to pay off these assets faster than the banks require. If I were you, save that cash and try and use it to purchase another property. If the fourplex increases in value you can use it as collateral 

People like turnkey properties because they don't require much work. The downside is there's usually a much lower cap rate (bc you're getting less of a deal) and there's little room to add value which will ultimately help you to scale quickly. Also, you won't learn as much about the business with turn key properties. But generally, there's nothing wrong with them if you find the right one/s. A deal's a deal!

Have you read Bigger Pockets Long Distance Real Estate Investing by David Green?

Have you looked for single family opportunities in the suburbs of Philly? It' may be best to start where you're familiar. In my immediate area there's 400k homes that will cashflow close to 1k per month if you're creative.

GL!

That's a good question... I'd try calling @DRJoeAsamoah and see if he'll share with you

That's a good mentality. Honestly, I'd go check rent comps and see if fenced homes are renting for more then use that price to see how long it'd take to make a return on your investment. 3500 is like 7% of the purchase price haha so it may not be worth putting cash into the property unless you can find a way to build it into your loan. Just something to think about.

It looks great man, congrats! Seems pretty turn-key to me. You could transfer utilities to the tenant if that's not already the case. Some cool light fixtures in the bathroom above the mirror or some nicer modern/industrial ceiling fans can go a long way. 

Whatever you do, I wouldn't spend a lot of cash adding unnecessary things in an effort to increase rents.

I've called lots of people in your very same scenario. Most likely he wont say yes right when you call him anyways, so having the financing right away isn't a big deal. Cold calling sellers usually takes time, and a few no's before you get to that yes. GL and don't hesitate to call and get rejected!

As long as the property is a "good deal" just add a longer study period so you secure financing. 

First off, look at the contract and see if it has a paragraph on specific performance. In some contracts, the buyers EMD is meant to serve as a liquidated damages in the event of a seller breach.

It's not likely that a court will enforce specific performance against the seller. While it does piss you off, it's likely not worth it, unless you really want that property.

Read the contract, then think about calling a lawyer, coming from a law student. 

Lets see some pics of the inside!

Congrats, good work!