All Forum Posts by: Chris Hamrick

@Ryan Deasy It's a single family, we wish to not escrow taxes or insurance, no HOA, debt obligations $650/mo car note, personal mortgage $1414/mo. If you or whomever wants to message me a quote feel free!

@Andrew Postell The property just needs appliances and a deep clean as far as I can tell. So nope. No rehab! Hard Money is too expensive. Should be a simple transaction but these rates and fees we're finding are ridiculous for such a short span of time from our last deal (December 2021) We got 3.5% with .5 point on an investment property with 10% down and no escrowing of taxes and insurance! Now, the best we can get is 6.625 with 1 point and a $1,600 fee to not escrow and 20% down. 

Hey everyone, we were going with Meritrust with this property of interest. They're now reneging on rates, down payment, and want extra documents (1099's for pension and SS). Anyone can help us out?

Purchase price: $139,500

Appraised value: $250,000

Under contract: Yes

Credit Score: 770

Down payment: 20%

Income: $9,400/mo

Conventional Loan

Low DTI

Thanks!

@Colleen F. Yeah, I figured that out. Did some research, but of course, I'd hire contractors for those jobs anyway. I just won't put the DIY repairs into the contract. Just the big ones. Since the units are old, I'll probably replace them anyway so I can keep more cash for any future investments.

Thanks again everyone. Going to be calling around today!

Charlie that is amazing advice! I forgot all about the 203k loan! And I checked the crime. Not one theft in over 12 months! The cut is clean and the two pieces match right up. It just looks like either someone sabotaged it do they could get it cheaper the solder failing doesn't seem possible as I couldn't even feel any around the cut. It's perfectly clean.

i had it inspected and the worse thing was that pipe being repaired and it's a quick and cheap fix. Unbelievable the VA won't just fix it!

and this house won't need near $35k so I hopefully would be in the clear there as well as long as it appraises. This will leave me with more cash albeit it s higher payment but not by much. Thanks again! I'll work on this tomorrow.

BTW, I hear with these loans I need to have contractors lined up. For the most part, I'll be doing the work myself save the furnace and having more outlets ran to the bedrooms. Do i have to have contractors lined up? Or will they accept me doing the work myself?

thanks again!

Unfortunately the VA aren't the ones who had it winterized according to the seller agent. So they're no help. I have a name and his last name is unique, but in my personal search for him online hasn't yielded much. There seems to be only 2 people with this name in Kansas. One is in jail and the other I spoke to. So it might be the guy in jail unfortunately.

@Colleen F. This is my first time hearing about delayed financing. I'll look into it. As for family and friends... well, that's not possible. I have family and friends with plenty of money, they're just selfish and part of the reason they don't have more. The ARV is up in the air. It's a small town in Kansas and while I know I could rent it for about $1,000/mo; I'd estimate it being between 94-104K but a bank could (and I'd have to assume) they would disagree. Just not enough comps to really tell. I have a budget of 20K I can put into it and most of the work I can do myself. It doesn't need a ton. Most expensive things would be A/C unit and furnace if they weren't operational.

The reason for buying this house is so that I could focus more on generating my passive income without the strain of having to work a 9-5 while also running my business. In this home, I could focus on business and still have time for my wife and kids. 

Thank you for your suggestions though! They've been helpful!

Hey everyone,

My wife and I want to buy a house out in Kansas. Good area, cheap properties. We found a property for $57K. Had it inspected and so far there's not a lot of work that needs to be done. However... the gas nor water was on. It looks like someone cut a copper pipe. It was winterized earlier this year, and now there's a pipe hanging, but it's a clean break which is weird.

I was told that no bank would finance this. One said they'd do it if they could get a report from the company/person who winterized it. We have his name but he left no number on the winterization notice. 

Anyone have any ideas on how I can get this financed? I have some cash, about 40K but I want to put out the least amount of money for financing to anticipate any repairs. There may be more plumbing issues, the furnace may not work, and since it was cool, we couldn't really test the A/C. So I don't want to be cash strapped and it need repairs. 

I thought about hard money, but we want to live in it. 

Any help will be greatly appreciated!

 I understand asking for an NDA for those things. I just asked the guy for the cap rate, that was all. His literal response was, "Sign the NDA". That was it. He comes off rude and aloof which makes me not want to ask him anything because I think he's going to lie. It's a big deal, and my first commercial deal so I may be overthinking flags that are more orange than red.

Yes. It's a body shop, and I have experience in auto sales and repair. My business partner has 18 years experience in insurance adjusting and auto sales and repair. We decided to pass on this deal. For what we originally wanted, this shop is too big. More to manage than we'd like. The income was nice to come into, but for work/life balance and peace of mind, the extra stress of managing such a huge facility isn't worth it. Also, neither one of us knows how to do body work at all and in the event we need to hire... what are we going to do? We can't verify whether a person really knows their stuff or not; and we agree, auto repair isn't a stable business in our opinion.

This is invaluable information, thank you Charles! I have never purchased commercial property before and this is something I would've skipped in ignorance, thank you!

Yes, I understand that. I was saying that they said the gross was around $6 million and the net was $2 million, but I'll get the financials before I believe anything a broker says. Thanks again!