All Forum Posts by: Keith N.

I see a Hubzu property that I'd like to make an offer on.

***Now before we get into this, let me tell you that I have in fact researched Hubzu, heard about how tons of people hate it, and am aware of the buyer fees they charge.***

My Question: Can a one of these Hubzu "Cash only" properties be purchased using hard money? I have excellent credit + have spoken with a few hard money lender's, so I already know the lender I'd go with

- Does Hubzu allow a buyer to purchase the home using Hard Money?

- Will Hubzu honor a "approval letter" from the hard money letter?

- Do most Hard Money Lenders REQUIRE a full inspection, with access to interior of the house, before lending money?

... Basically, I'm trying to figure out if it's possible/makes sense to purchase a property on Hubzu using hard money.

@Patrick Crehan yes, I started with about exactly that much in my bank account when I was 23. I house hacked a duplex.... tons of others on biggerpockets have also started out with basically no money and 3% down on their first property. You really shouldn’t be worried as long as it’s a good deal. Owning 1 house with low cash isn’t very risky at all. The average first time home buyer scrapes together money and overpays for a house and they turn out fine..... Now, if I owned 6 houses and only had access to 11K, then I would be worried

Definitely never pay anything up front. Maybe if it's a bigger job like a roof, you could give them a small portion (10%) once they show up at your house with ALL materials and begin working... to show em you have money. But I would try not even to ever do that.

@Ashish Acharya Thanks for the advice, however I want to make sure I fully underatand.....  SO If I did a 1031 exchange to re-invest half ($30K) of net proceeds to a "like property", then took the other $30K and stuck in in my bank account as "extra cash"... I would still only be taxed on capital gains for the $30K "extra cash" and not the $30K which was re-invested (following 1031 rules) into a "like property"? Is this correct?

@Ashish Acharya yes, I understand the other 30K will Be taxed to the full long term capital gains amount. I just want to keep the other (taxed) 30K as cash to have for reserves and whatever else.

I’m going to list one of my rentals for sale in about a month when the tenant moves out.

I will probably net about 60K from the sale (after all transaction fees). My goal is to use about half of this net profit (30K) and re-invest into a new rental house (20% down on a ~100Kish house) to keep myself “in the game” and avoid being fully taxed for long term capital gains.

i know very little about 1031

What QI have you used? What were the fees and stipulations?

I’m in North Carolina if that matters.

Whatsup @Trace A.

if you own 3 or fewer total properties, PENFED will do HELOC on a rental. I got a interest only HELOC on a duplex I own through PENFED. They didn't even require an appraisal in my case. zero closing costs. Great experience

......

If you're asking about A) a single HELOC on all 3 rentals or B) three different HELOC's (one on each of your 3 rentals), I doubt they could do that. but you could ask.

@Sara Taslitt yeah I use Cozy.co and have for years. Good service. Transactions take a while even with express payouts though

@Veronica Martin trusting a tenant to replace air filters. That’s a funny joke