All Forum Posts by: Christina R.

Looking forward to meeting you too.  You'll find the hardest part is not finding the money, but finding the deal.  Usually the mentoring comes with the money as investors don't like to flush it down the proverbial toilet, lol.  

Start forging relationships. Network network network. Attend more.meetups and reias. What areas do you want to flip and hold in? Thats where you need to start putting in face time. There's the bwi meetup, mareia, baltimore reia, spirits west lunch on Fridays.. all local people and alot of them are on BP. That's how I got started. Amazingly I have these people happy to work with me but it didn't happen by me just asking. You can do it!

If you pay cash, you can immediately refinance and pull your cash out if you have a lender that will do a minimum loan amount for you.  So let's look at round figures.  You buy a house for 70K cash, the appraisal for market value is 100k.  Your lender will do a 70% ltv loan. you can pull 100% of your cash out the next day if you want.  

Now, let's say you are going to force equity through rehabbing and you're holding this as a rental.  You buy a house for 25K, you need to put 45K into it to get it rent ready (this is a common scenario in Baltimore CIty).  Now you're "all in" for 70K.  However, you purchased it for 25K. If you want to be able to pull the entire 70K out - like in the first scenario - you will have to wait 6 months and 1 day from the date of initial purchase for a FNMA backed loan. And, of course, you have to hit the lender required LTV which is usually 70 or 75% in Bmore for investor properties.

Whether it's called "delayed" or "cash out" the thing is you have to wait before you can pull ALL your money out AND your property has to appraise adequately for you to do so.  I don't know what your lender is telling you, I mentioned before maybe this has to do with your credit worthiness/debt-to-income ratios that you have to use the rental income to now qualify to be able to do this, but I'm not a lender I don't know the ins and out.  I agree with everyone else - talk to a bunch of different lenders. Local banks, credit unions, banks on BP marketplace, etc.

Also try Adam Knoll of Hillpointe Insurance in Baltimore.  Google to get contact info.

I have a fannie mae on my first rental that I got via a delayed refi. I had a private lender lend me funds for acquisition and rehab. At the 6 month mark I commenced the refi via my mortgage broker and I was able to refi at 70%ltv.  Other thab hitting the ltv %, the only requirememt was waiting 6 months to do it for this fnma backed loan. This was my first rental so i had zero rental income history and that had nothing to do with qualifying for the loan. That was based on debt ratios and credit like anything else. Maybe if those two aspects are holding you back you need the 2 yr history of rental income but  im not a lender so I dont know if that comes in to play. I agree.. speak to different lenders. Good luck!

I would also recommend Adam Knoll of Hillpointe Insurance in Baltimore, let him know I referred you. He may be able to beat Luray's rates (I've used both in the past). 

@Kathryn Mould - I know you said you keep away from threads but I would advise you to actually do some searching here about being an agent and wholesaling. It's definitely an area that is...... gray (or grey, if you prefer) in Maryland. You are walking a very fine line that usually doesn't get tripped up... until Sammy the third cousin twice removed on Auntie Jane's side decides that you swindled Auntie Jane out of what her property was REALLY worth when you put it under contract and then sold that off for a profit instead of listing it on the MLS as an agent should do. As an agent, you're held to a higher standard period whether it be reasonable, logical or anywhere near accurate. I know that it has been done, it probably can be done ( a million disclaimers signed off by the seller plus you are selling your rights in the contract, not the actual property - all legal points) , but you better know what you are doing if you are an agent and you decide to wholesale a deal.

** no legal advice

networking, as mentioned above, is your best way to learn and develop relationships that will teach you what you need to know.  Check out the bwi meetup (www.meetup.com/bwimeetup) since you're focusing on Baltimore.  That meets next Wednesday, and the general session is always free.

Local REIAS, you in NoVa so do some searches on this site for Northern Virginia REIAs and meetups.  Go to meetup.com and do the same.  You'll find them! Good luck!

There are forms here on the "Tools" tab under FilePlace - check them out.   If you find a true deal, you will find people here that will point you to what you need.  A basic purchase and sale agreement should be found here in the FilePlace.   Also, do a search engine check of "purchase and sale agreement" and see what comes up.  The search engine in the upper right corner of the BP pages usually pulls up a great amount of links.

Good luck!