All Forum Posts by: Chris Davidson

@Steven DeMarco deal looks good, get with your lender. The issue will be the FHA self sufficiency test. However if you can get the property the numbers look to be a drastic cut in your expenses. The deal will likely have to be ran with you occupying a 1/1 to improve the sufficiency. Also they can uses market rents if the unit is vacant, however if there is a lease in place at below market rents then they have to use that lease. If it has been on market and you have some leverage you might be able to negotiate closing with units being vacant thus market rents being used for the self sufficiency test vs below market. However get with your agent they should be able to help you best as they know the property and circumstances better than some internet strangers.

Best of luck keep after it!

@Joshua Rogers you been to any local REI meetups? Figure out who is working in your market and if you get a local you might be able to land a mentor.

Best of luck!

 Reach out to a agent or title company see if what deed of trust or mortgages are on the place. That is a list of who will lend on the property. If there isn't any it will be super tough. Find a local bank/ CU and see if they have a portfolio loan that will work for you and the property. 

Conventional fannie and freddie products wont work.

Best of luck!

@Ryan Cousins great advice from @Chris Seveney the biggest thing is move slow in the beginning. People will come out of the wood work with opportunities and deals. Put some where low risk ok return which you finally can right now. Then invest in education and learn how to manage at least the managers of the funds. Also sticking it in bonds or CD's ties it up to where you can't spend it while working on your plan. one million goes fast when it comes in fast. If you invest in the education you will know what to do when the time is right.

Cheers!

@Alex Padilla you say you have the cash to float it. I would reach out to where ever the cash is deposited and see if you can get a secured loan against it. Once you are finished get a second to pay off the secured line or just start paying it down depending on terms.

If you funds are in a brokerage account you can get loans against them just know you can have margin calls so be smart. You could go hard money, but you likely will get better terms with using your own funds as collateral. Just shop it around.

Best of luck!

@Garrett Pettit for loans from family members it can work good or terribly. It all depends on you and the family member and how things are handled. In short if you make the payments you should be fine, as long as they know they don't get to decide how you run the place it is just a loan not a partnership.

Worse case you both end up at the shrink or never talk to each other again. Best case all works great and they want to lend more money. 

@Daniel Z. congrats on getting it paid off! Getting a LOC on the place is a great place to start as they are cheap to set up and don't cost until you take a draw. Getting the equity out is a different issue compared to asset protection however they both play off each other.

Is the property located in CA? Reach out to investors in the area and see who they use. Getting CPA and attorney references are a lot easier than contractor references. 

Best of luck!

@Baha El Far build up your cash. Ways to get started in real estate without a loan or cash. Look at a master lease where you are renting a property that you in turn rent to a different party to make a spread. This can help you figure out if you really want to be a landlord while making cash. Another partner with someone who has funds but not the time. Look at REIT's, or lending what money you have out to for rehabs (to folks you trust and the deal makes sense) and build up your cash while learning about the game.

Best of luck!

@Mark Rasmussen any update? 10k a property to reach ARV seem rather low unless the seller has windows, HVAC, roofs, landscaping, plumbing, electrical, and everything but paint and flooring squared away.

Do you have equity somewhere else you can use, or can you cross collateralize to get the funds for rehab and payoff off with a refi afterwords?

Look at your portfolio as a whole and your financial situation as a whole. Without all the pieces it is going to be maybe. Start reaching out to folks who can lend and explain what you are trying to do, and your position.