All Forum Posts by: Account Closed

Hi Sean and welcome. Provided you have a pretty solid and steady income, I suggest you find a duplex or triplex to start off with and live in one of the units. If you qualify, which it sounds like you would, take out a 30 year fixed mortgage at a low interest rate to buy it. Since you’ll be living in one of the units potentially, you should qualify for “owner occupied” interest rates...don’t quote me on that as I am not a lan officer, but worse case, you’ll get “investment” rates, which are still pretty darn low these days. Then, once you get comfortable being a landlord, rinse and repeat! Try to buy in upward trending markets and of course remember the golden rule of real estate investing: you make money when you BUY real estate!!! Best of luck, Bryan P.S. - once you get tired of being a landlord, hire a management company to manage your props for 7-10% of rental income. And buy properties with at least a 10% or preferably greater cap rate (rental income minus operating income (i.e. expenses) should net you 10% or more). Last tip, set aside some money for each unit to cover 3 month’s of vacancy and 1-3% of purchase price to cover any major repairs!!!

@Percy 

@Percy N.  Okay, that is great to know.  I thought it was me!  lol  Thanks for the link and info.  Bryan

Thanks @J Scott

Hey everyone,

Does anyone have a solid contractor agreement template I could get a hold of?  It would have to be editable.

Thank you.

Okay, understood.  I'm learning, so thank you for your knowledge and feedback.

@Greg H. Okay, that makes  sense.  The title company kept pointing fingers at Sage.  When I worked with the agent, who was Hud's listing agent, I was never given an option to select my own title company.  That didn't seen right either.  I have felt like I'm getting scammed in this entire flip deal, and still do from the contractor.  It isn't fun being a newbie at this with little resources or trustworthy relationships.  Sigh :/   Thanks for the info.

Everyone,

So sorry for not replying sooner.  I got caught up in stuff and completely forgot.  I appreciate all of your feedback here, it was all very helpful.

Thank you,

Bryan

The company they are using is called Sage FYI...

The HUD home I was referring to took about 50 days to close this property! The title company said that HUD discovered they had back taxes to pay on the settlement statement, which apparently delayed the close, plus, the title company told me that HUD is using a 3rd party now to manage their deals and the new company is disorganized at this point. Have you heard of this by chance?

At any rated, thank you again, I appreciate it!

Bryan

Hi.

I'm working on my first official rehab project, therefore, I have not  established private money lenders at this point.  I have purchased the property with my own money and am talking with a hard money lender to finance the rehab portion and some holding costs for the project.  They will lend me the full purchase price of the property at 16% interest only.

Is it normal for a hard money lender to be the Mortgagee/Loss Payee on a homeowner's insurance  policy?

Also, once the property becomes livable, I plan to live in it until it sells - with the assumption that the market I am in, plus winter months, will take a few months to sell (unless I get lucky and it  sells rapidly).  Is this typically a problem with a hard money lender who will have the first position lien on the property?

Thank you,

Bryan