All Forum Posts by: Chad Nagel

Get the cash up front, everything in writing. Also making sure you address her contribution, having no value or interest when she moves, becomes evicted or you sell the home  

following....

Do you need my info to send the 300k to me?  I will gladly cut you 56k back, once your wire clears. 

Hit up @Michael Reale   

Manitowoc has always been a semi depressed market.  Are you buying for appreciation or are you buying for cash flow? Value of property has lil to no value on cash flow basis once your fixed rate financing is in place.  I used to care what properties were worth as it pumps up your ego, but at the end of the day, thats "paper money". Id rather have solid cash flow.  Figure out your goals and move forward on deals. 

I have bought a few usda foreclosures. It is handled the same way as a typical bank reo. If USDA is already listed as owner then always contact. 

Start with the owner, Usda won't give you any info as it's a confidentiality issue.  Do you want a buyer getting your info from a bank if your behind in payments? 

I have had a HELOC on a home I lived in WI. Due to the value of the home, most banks did not like the idea of 1st position HELOC. It was around 220k on that home. I have other LOC in senior lien position on rentals, those the banks will cap lending in the 70-80% range. Every one I have done is variable interest. The banks need to make the proper spread on the money. Most banks like a 4% spread on money they lend, the issue is tho. A LOC is not meant to be full for long periods of time, so the bank is not getting a constant return. Hence my "evergreen" comment in earlier posts.

As Scott said above, disciple will be the key^^^ Not many investors are able to control themselves with cash available at their finger tips. It most often leads to new trucks, boats, atv etc. Your best bet will be with a smaller local bank. The thing you are rolling the dice on is the interest rate, will you be fine if its 8-10% when we have rate increases? The other thing is a LOC is not designed to be maxed out for a long period ( trust me I know). The bankers refer to this term as evergreen and will require you to take a LOC and convert it to fixed financing. The other thing to realize is most LOC are interest only, so you only pay interest. Keeps payment low but you never get ahead. Again with the discipline.....

google the term, we go look. The have created a biz model to look at homes to cars, etc