All Forum Posts by: Charles Ownby

 I am on the same page with you about 99%. I'm a big Dave Ramsey fan and big fan of no debt. Here's the thing, we have 5 kids so my biggest vehicle debt is our Yukon. Owe about 22K and the payment is $361. The progress we've made over the last 3-5 years has been very much a sacrifice of doing without what we want and sticking to needs. I made a deal with my wife about a year ago that if we sacrificed some things we had already put off and she waited that extra year for another vehicle(the last one was on it's last legs), I'd get something nice for her, nothing new but nice and dependable. We got the Yukon. Selling it isn't an option if I want to keep my marriage. I know on paper and from a black and white financial perspective that isn't the right answer but I kinda like my wife and want to keep her, lol. She wouldn't really leave me but home life would be miserable for a while and frankly, she earned it. The financial cost/value of the vehicle isn't worth it but she is so that's how I look at that. My car is $231 payment and has 9K left. I am actually looking for something else cheaper and better on gas so it's on it's way out. I'll probably get something cash this fall. I have 2 times a year where my job requires 84 hrs a week for about a month to do our maintenance shutdown so with that OT I'll get something cash and get rid of mine. I use CC's for cash back/points but pay it off monthly never paying any interest. We use it for what we already spend and earn back on it. I actually paid for my vacation condo last month with the built up cash back we had. I'll definitely read that. Thanks again for all the input.

 Not to that point yet. I'm trying to get a property I already own fixed up and leverage that equity for my next one. Once I do, I'll definitely have something ready before approaching a lender.

 Valid point. I'd never message a lender that way but I totally agree with the difference you've illustrated. I appreciate the feedback. I was negative in my post because I was being transparent in my frustrations and wanted to be honest in where I am at mentally to get honest feedback so I appreciate all that have replied. I definitely will take this approach and make 150% sure I frame my approach in a manner such as this. Really good feedback.

Totally agree. I've actually been paying attention to mindset based on some of the podcasts I've heard and trying to be careful on that. I re-read my initial post and I can see that. I'm absolutely proud of where I was to now and I have 1000% faith that I'm on the right track, will succeed, and that it's only a matter of time. I just know that I'm really close and I can smell it so I'm frustrated in not being able to find what I'm needing right now, a little more patience is in order. I'm going this week or next to speak to every bank I can fit in a day or two and see what I can either get started or at a minimum, find out what is getting me turned away and fix it. I guess what was coming through my original post was the situational frustration. I'm not afraid of jumping but am a little fearful of who to trust regarding lenders outside traditionally known lenders. I don't know much about hard money lenders or private lenders so I don't know which ones are legit, are predatory, or who to trust. I was hoping to find contacts here on the BP page and the ones I've contacted have not replied, at all. However, I haven't been very aggressive in continuing to pester them until I get a response so that's on me. One thing I've learned from this group and from this thread of comments is that it will definitely take a lot of legwork. If my level of pursuit isn't yielding results then I guess I just need to keep raising the bar until it does.

Thanks for the reply. I net about $8200/month. My mortgage is $2200. My overall debt to income is at 26%. My savings is depleted at the moment because I used savings and profits from selling my previous home to get our dream home. We just haven't restored it yet. I'll have a 20K bonus in November that will replenish that plus I'll be setting that 20K aside towards current mortgage, car payments, insurance in order to effectively reduce my monthly expenses by $1600/month. That will allow very aggressive savings. I have the 2nd house with equity just sitting that I want to utilize towards beginning my RE journey. Assuming 30-60K in repairs(maybe no where near that is needed just being overly conservative) and 175K ARV would allow 140K cashout refi(assuming 80%LTV) minus the 30-60K leaves me with 80-110K liquid to begin. My mom and disabled uncle rent it currently so they'll be covering the mortgage/insurance.

I just posted with more on my personal financial position. I understand your numbers on the assumption that it's a 100K purchase but this isn't a purchase. The current value is 80-100K. 1300 sq ft in good condition for the area brings 135-160/sq ft. On the conservative side, that's 175K ARV. Borrow 30-60K(might not be that much but I'm assuming worst case scenario) then make repairs and do cashout refi based on 80%LTV let's me pull out 140K minus the payoff of 30-60K and that leaves me with 80-110K of liquid assets which more than shores up the savings and funds needed to start. My mom and disable uncle rent the house currently so their rent would be paying the mortgage. I feel like that puts me in great shape to get started. My issue is finding a hard money lender that would work with me initially for the repairs which is what I need to get started.

My actual gross income is 160-170K. My monthly net is about $8200. When I sold my last house to buy my current home, I used profits and savings to reduce my payment and debt to income ratio as I try to keep it down. My current debt to income is about 26%. My annual bonus, net, is 20-25K. My plan for this next year(bonus pays in November) is to take that 20K, put it in bank, and use it to pay $1000/month on my mortgage, car payments, and car insurance. This will reduce my personal monthly debt to income by ~$1600/month. This will give me some financial freedom personally to do things we want to do as a family without needing or wanting to pull from the investment proceeds. We'll have quality of life and the investment side can just snowball and grow. My end goal is to get my cashflow/annual RE income to 200K and leave my current job to do this full time. I know that seems aggressive but my goal is the freedom to work for me and my family and not be on someone else's timeclock. I have a great job and am thankful for the blessing of it but I want my independent freedom.

The 2nd house should appraise for around 80-100K as it sits. It was built in 1940 and houses around it are consistently selling for 135-160/sq ft. House is 1300 sq ft which puts ARV at around 175K based on the low end of 135/sq ft. It's also on a double lot and may be one of the only in that whole town that has that so they may add value or we could separate that extra lot and utilize it later. Regardless, my 30-60K was being being overly cautious. Before lumber soared last year, the roof quote including the detached garage was $7500. Assuming a complete subfloor replacement and hardwood or vinyl plank I estimated 10-15K which might be over the top but flooring isn't cheap. It doesn't have to have it but I'd like to rewire the house and replace HVAC unit cause it's old. Depending on what all the quotes are, there is an opportunity to finish out the attic which would add sq ft and there is potential to add efficiency apartment over the existing 2 car garage which would add sq ft and add to rental income on the property. My wife will not sell it cause it's her childhood home and she wants to keep in the family for anyone that might need including our kids one day. The attic work would add sq ft which would raise the appraisal and the apartment add would add sq ft as well as rental income. This is attractive since my mom and disabled uncle rent it so on the house itself, we'll only charge them enough to cover mortgage/insurance. The apartment would allow it to actually cashflow.

All that being said, assuming the 30-60K and expected 175K ARV, on a refi at 80% LTV that would bring 140K mortgage minus the 30-60K to repay the repair loan which would leave 80-110K liquid to start our RE journey.

My long term plan based on my goals, my mentors guidance, and what I continue to learn would be to do 6 flips between now and December 2023(more if possible but it's tough market). If we don't get 6 I don't consider it a failure but that's the goal. With a criteria of netting 20K per flip that would be 120K by end of 2023 which would put our working capital at roughly 200K. After that, I'd like to BRRRR my way to 5-7 cashflowing rentals(5-7 is my mentors sweet spot) and then going back to flips. Our plan is to maintain a healthy working capital and use flip profits plus rent to pay off rentals free and clear and then start all over. BRRRR another 5-7 rentals and then flips plus rental income to pay off those. Wash, rinse, repeat. I have 1 relative that is licensed HVAC and another that owns drywall business and knows framing. Plus I am capable of a decent amount of work.

I feel like I'm in a pretty good position to start and feel more than ready. I just need to get the insurance issue worked out and then find a hard money lender to get the initial repairs done and do the cashout refi. There's lots of people in much worse shape than I am that seem to be figuring out how to make it work. I just need that first loan to build off of.

Hello. I was introduced by a coworker to BP who is a long time and highly experienced investor and he has poured a lot of knowledge into me, however, I think we're at a point where he isn't going to go any further with me until I demonstrate I'm serious and willing to do my own legwork and I agree and am more than willing. I'm ready to be on the other side and able to show someone else the real estate way one day. I am married with 5 children.

Here is my situation. I just bought our new to us forever home(October 2021). It has some equity and needs some work. The ARV on it would be fairly significant once upgrades are done. In addition, my wife has a home she inherited and it is free and clear but there is an issue. Her dad was keeping up the insurance while her grandmother was still in it and for a while afterwards but he let it lapse and didn't tell us. Now, it needs some roof and flooring work and we've been unable to get homeowners without the repairs but can't get lending without insurance. I've just recently learned about builders risk and am looking into that.

In addition, my credit used to be awful. I've cleared most of it up and as of January this year it was in the low 700's. In April, a medical collection popped up that I truly had no knowledge of and another item from years ago but both have since been removed but my scores haven't rebounded yet. Regardless, I can't currently seem to get approved for anything through traditional banks and don't want to apply anymore as each hits my reports as well.

Between my personal home equity and our 2nd house we have probably 100-120K worth of assets that could be tapped. The 2nd house is worth probably 80-100K and with 30-60K worth of work, would put it up to 180-200K in value. My primary home is currently worth about 510K with 375K on the mortgage. My desire is to get a loan to fix the 2nd house and then cashout refi to pay off the repair loan and use the remaining cash to fund flips/acquire rentals. My problem is I can't seem to figure out how to make it work.

I've read, watched, listened to countless hours of podcasts, youtube videos, and articles and I hear all kinds of stories on using other people's money, using private lenders, hard money lenders, etc. but I can't seem to find them. They seem to be like unicorns. I've contact ones listed here on BP and I can't seem to get any response or find others. Google searches don't yield much of anything except conventional lenders.  I hear a lot of general statements made about just making it happen or finding a partner but I don't seem to find anything tangible to grab hold of or follow to actually get the ball rolling. Most of the stories I hear usually reveal in the meat of it that they had someone along the way that helped, provided funds, had a friend, etc. but we don't have anyone. Both my wife and I are going at this entirely alone. No one on either side of our family has any financial literacy or drive and definitely don't have any funds to contribute, even if we offered some return on it. They just don't have it.

I don't know if I just don't know where to look or if I am doing something wrong but I really want to get the ball rolling and start my real estate journey and change the trajectory for my family. My wife and I both came from not much of anything and have endured so so much in our lives. We came from poverty, I went back to school, got a great job and went from gov't assistance early on to now making six figure income. We've bought our dream home that just needs a little work and are able to support our family of 7 but still struggle at times. We've changed our finances, fought to repair our credit (except one unforeseen thing can popup and set us back months at a time) and are ready for the next step. We're on that last 100 yds to the top of the hill (which is the hardest and requires the most diligence, patience, and tenacity) but we just need a little wind on our backs. I'm hoping that posting all this here will at least point us in a direction or help us identify and remove our own barriers that maybe we aren't seeing. I know there is a lot here and is probably all over the place but it's where we are.

Any help, guidance, tips would be greatly appreciated.