All Forum Posts by: Chad Dunham

 Hi Dee, I would be interested in that script and strategy! I keep trying to find a way to find more foreclosures.

Aaron, thank you for the quick response. I am currently stuck in a BA contract and I do not want to ask to back out, as I do not want to burn any bridges. The Broker is helpful but the agent is more challenging. Not really sure what to do. I feel this holding me back. I have cash ready to buy, but no motivated agent to drive this next purchase to close.

Do you have to sign a buyers agreement for purchasing?

Do you have to sign a buyers agreement for purchasing?

Nicholas L. and Craig Sloan, I greatly appreciate your valuable time spent and advice given towards my questions. If we ever get to cross paths, beers are on me!

Thank you for the prompt response. That does help and make sense.

For the DTI ratio, this through me off as the way I understood it, as long as I show the lender the income/savings expenses etc. from the house I will be renting and my current job paying for the new mortgage it should not be an issue. Please correct me and explain if I am wrong.

As for the equity and using a 1031, I was thinking I could refi on my current mortgage and pull out the equity to buy more deals and if I used the 1031 I could save on taxes, but it sounds like the 1031 may only be used with the sell of a property. Please advise.

Hello everyone, my name is Chad Dunham and I live in Eureka, MO.

Background intro: I am new to investing, although been interested since 2004. Unfortunately, life's obstacles have gotten in the way, until now. I am 43 yrs. old, married, 4 kids, work full time, have a decent savings ($20k), available credit cards ($90k), two 401k accounts ($75k), a pension ($115k) and 800 credit score. Just a few of my goals are to leave my current job, (Data Center Supervisor) hopefully sooner than later and become a full time Investor, accomplish Financial Freedom with a passive income, build a large portfolio for retirement and have a business to hand off to the kids. I have a strong drive to succeed, as failure is merely a learning curve.

1. 1. So above I listed most of my current assets, leaving out home, RV, cars, etc. Should I get an LLC to protect them now, or can I wait and how long?

1. 2. I currently own a 3/3 SF home. Bought in 2010 as a short sale with an FHA (+MIP). The house was originally listed for $210k, on the market for around 6 months eventually dropping down to $198k. I offered $165k and agreed on the counter of $177k. I currently owe $143k @ 3.25%. We are ready to move into another home out of the subdivision and back into the country. I would like to start the process here with the current home by renting it out. So, I have used the BP calculators for BRRRR and Rental and ran the numbers several different ways. I'm not sure which one I should be using. In one aspect I think BRRRR because I bought the property with some distress and since got a HELOC and fixed it up. But, in another aspect I look at it as money already spent and think I should be using the rental calculator. Either way, I would think this is a good start as I already have around $80k in equity and the mortgage almost half paid for. Also, do I keep the HELOC @ 6% and use it for more deals or refi the loan, take out the equity and use (1031) for more deals?

1. 3. With the available money I have, should I use it for my next deals? (obviously the credit cards are worst case as interest is so high) Should I roll my 401k's and pension into a Roth IRA and use only for Real Estate so I can benefit from not paying taxes if I always own the property (buy & hold)? Or is it just better to leverage OPM and protect all my assets under an LLC?

Any advice or constructive criticism is greatly appreciated.

Thanks, and stay safe out there.

Andy, if you haven't already, sign up and attend the webinar for Wed. Mar. 25th. Brandon goes over so much helpful information for getting started.

Investment Info:

Single-family residence other investment in St. Louis.

Purchase price: $177,000
Cash invested: $6,200

This is my primary residence. I bought this home as a short sale. The original listing price was $210,000. At the time I made the offer, the price had dropped to $195,000. I put in an offer of $165,000 and accepted the counter of $177,000.
Since then, I have done several upgrades such as, all new kitchen, all new siding, new roof, remodeled basement, and new cedar fence in the back yard. These upgrades were done through the HELOC from the equity have in the property.
My wife and I have 2 years left until the last child is out of school and at that time we plane to move. Still trying to learn more about all the exit strategy options and what will best fit my needs for growing as an investor.

What made you interested in investing in this type of deal?

Picked this location because of AAA school for kids.

How did you find this deal and how did you negotiate it?

Driving by and negotiated through REA.

How did you finance this deal?

FHA, FTHB

How did you add value to the deal?

Instant equity, and HELOC for repairs.

What was the outcome?

Th estimated value of the property is currently $250,000.

Lessons learned? Challenges?

Should have house hacked.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agent, lender, title company