All Forum Posts by: Carl Crump

@Cory Peters Andrew is right this is built for a hard money lender for sure.  If they like the equity and potential they will do it but the fees will be a bit high.  

Another option is potentially to do a conventional rehab loan.  I am not sure what they would say about the occupancy but you could get financing with repairs built in with much lower fees and costs.  I believe it is called a home style loan.  If this property qualifies it would be your best option I believe.  

 Hey Sheila,

So I am a little late to this thread but want to give you some input.  I did not read every thread so apologize if I missed something.

First of all Chris had a good point about moving to a 2-4 unit property that you occupy. I know you are using your VA but there is not a limit on how many times you can use it... You would just have to sell your current property. I was in the military for 11.5 years and did not know i could use multiple VA's. I was waiting for the magical house I could use my one VA loan on. So selling then using on 2-4 unit will allow the rented units to pay your mortgage and be another source of income.

Secondly depending on how much your property has appreciated you can do a refinance.  I know you just bought it and haven't paid 

much down. If it has appreciated at all you can get 100% cash out of a VA loan. Usually max is 85% using FHA. Also you will skip 2 payments which will save you money too... Depending on your rate you could also just do a streamline refi called an IRRL and just skip the 2 payments.

Let me know if this helps or if you have any other questions.  Thank you for your service!!!

Carl

 @Nicholas Munford  Leverage in this case is simply stretching your money and using it to get multiple properties.

For example if you have $50K cash and wanted to get rentals.  You can buy one for $50k.  Or you could use leverageand put 20% down 3-4 $50k properties.

Of course there are risks to getting more properties at once as well as advantages. You will have more cash flow coming in potentially and multiple properties in your portfolio. Also more units to make up for possible vacancy. However you will have 3-4 investments with closing costs and more potential problems... If you do your homework and run scenarios her on BP leverage could be a good option. It is definitely riskier and maybe not as good for a first investment. Like I said before you can never go wrong with cash especially with the BRRRR method.

Remember also if you are getting the properties at good prices you are getting a big chunk or all your investment back when you refinance.  Hope that helps...

Hello,

I agree with the statements above.  Cash gives you more power and less fees.  initial coc will be lower but you are

getting most of your investment back when you refi.  

Another thing to think about is getting multiple properties using loans instead of paying cash for one.

This is the cash vs. leverage discussion.  There are arguments for both sides certainly depending on your 

risk tolerance and strategy.  I still say you can never go wrong with cash if you have it...

The credit hit is not a big deal in the scheme of things and will recover quickly.  Seasoning is needed for cash out on Fannie Mae loans and is 6 months.  

If you are in a rush to get money out for whatever reason there are lenders as a couple people have said that will allow this.  Rate will be higher and maybe shorter term but still a 30 year amortization usually.  Also it is still conventional just not Fannie or Freddie.  

If your main concern is the credit hit I would not worry about it too much as it takes 3-4 months at most to recover.  

Hello,

I am in the Sacramento area and am trying to find someone with MLS access who can pull list of cash transactions from last 6-12 months. From that I would just need the contact info for all the buying agents in those transactions.

If you can be of help please let me know and we can work something out.

Thanks

Carl

@Tim Kunz,

Got it you are added thanks.  

Thanks for all the responses.  I will definitely let you all know when we get some deals under contract.

Thanks..

Hello all,

I am pretty new to investing and have been learning a lot from this site.  I am now working with a couple private investors in the Sacramento area.  

I am looking for Real estate agents in the Sacramento area who invest themselves and/or have a list of cash buyers that are actively investing.  

We are starting a new marketing campaign, and are looking to get a good amount of properties soon. They will be mostly SFR but there will be some multi-unit properties also.

Thanks in advance!!

Carl

@Gordon Cuffe 

I went on the site and the houses that are going up for auction it says since they are being foreclosed it can't be sold privately only public auction.  I am probably looking in the wrong place.  The ones that are not yet going to auction are the ones I am looking for.