All Forum Posts by: Cherry Meekins

Perhaps you are right though. It is risky. Because I would hv to refi to get out of high interest HML. And if I don't, and I sell the cash flow to someone who can get refi, then yea it would only be a few months in rent that I'd make. Unless it drastically appreciated I that time and miraculously gained a lot of equity that I can get a payout from. Lol. Highly doubt.

 I would do a owner finance on it. So I get it at 105k. 

Get a HML to give me 70%.

I'll Give owner 30% of that upfront. 

Get repairs done using HML money.

Backdoor and sell to buyer on owner fi. 

Collect 25% down.

Pay homeowner half of what I owe and extend for 6 months.

I'll still have money left from HML to pay balance to owner.

Meantime, I hv someone in there, paying their monthly. 

And the only thing I'll be paying is the monthly on the HML.

 The homeowner wouldn't be charging any interest though. It would be one lump sum upfront, one in 6months, then the balance in 6 more months. No interest. Just extended time to pay. No monthly payments. Just 3 bulk payments to homeowner.

 Ohhh ok I understand what you are saying. It would need to be a straight buy upfront. So that I'm not owing two people at one time. I was thinking that because the owner is willing to owner fi, with a lump sum upfront then the rest later with no monthly payments, I thought it could work.

I'm wondering if the owner finance parts are complicating the deal? Specially when reading it. 

But isn't a HML second in position anyway?

 Oh? Ok? Why not?

Hi Community! Here's the deal: I've my eye on this house for sale in North Houston. It's a 3/2. Needs about 15k in repairs. Owners acquired it through probate. ARV is roughly 142k -150k. Rent avg: 1200 to 1300. Homeowners willing to do Owner Fi. They own it free and clear. They want 30% down. Then in 6months they want the balance, or if more time is needed, then another 6 months will be considered (I'm sure another deposit will be necessary for them to do it). No interest. No points. So. I'm thinking. If I get a hard money loan, I could fix it up, put on market for owner fi, 25% down or more, and do at least a 8% interest rate minimum. Since I wouldn't hv to pay the owners anything monthly, I could cash flow on it if the terms of the hard money loan fit. I would take 30% from hard money, give that to homeowner for downpay. Recoup that from my buyer's down payment, 6 months after that pay half the balance. Mean time collect the monthly, then in six more months or sooner pay off the owner. I know a hard money lender would only lend up to 70%. With interest and points. But if I got a low enough monthly payback terms, I could cash flow at least 400. That would be my goal. Of course, I'd want to get it refi, or sell the deal to someone who can get refi. I guess I'm looking for some input from hard money lenders who may be interested in helping me with this deal right?!

 Please help! 

Hi Community!

Houston is the worst when it comes to flood areas. So its no surprise when properties with flood damage come across a wholesalers desk. My question is: Is there hope to turn a buck into a profit with these properties, or just completely steer miles clear??

I have a property that came to me that has flooded before. This house has the potential to be someone's dream home. It sits on over a acre of land. The numbers are actually not that bad although the ARV % is closer to 80%.

The profit potential estimated to be close to $50,000.  

I've done a little research and based on what I've found:

Premiums for flood insurance have increased and are very high.

Not good for anyone seeking conventional financing but could work with unconventional fi.

You can offset costs by raising the monthly payment if you hold it.

And of course the buyer would be required to get flood insurance.  

Does anyone have any advice or information about how an investor could possibly make this work with flood zone properties? Please advise! 

Hi Community! 

Check out this article in U.S. Today: http://www.usatoday.com/story/money/nation-now/201...

What does this mean for Real Estate in that Area?