All Forum Posts by: Chris Marte

@Michael Masterson

What was the name of the local bank you used?

@Cassie Montalvo What an amazing job - you guys turned a dump into a beauty.

@Michael Masterson Congrats on the deal! 

Just have two questions: 

1. You purchased initially with conventional loan then refinanced with the same lender? Did you use a local bank?

2. What did you find during the walk-through inspection that caused the price to drop significantly?

Thanks everyone!

@Kevin Romines yup, that was helpful. Thanks Kevin!

Can anyone recommend lenders that are willing to do 90-100% max ltv for HELOC?

I'm looking to get a HELOC on my primary residence. I want to know how much Line of Credit I'm eligible for.
From what I experienced, I'm seeing two different approaches of getting to this number.

1. Found this example online.. if your home is worth $250,000 and you owe $150,000 on your mortgage, you have $100,000 in home equity. Lenders will generally allow you to borrow up to 80 percent of your available equity, depending on the lender and your credit and income. So in the example above, you'd be able to establish a line of credit of up to $80,000 with a home equity line of credit.
2. I went to the bank to see an adviser and was told it's calculated differently. For simplicity, I'll use the numbers from above example. If your home is worth $250,000, you take 80% of this number which gets you $200,000 then back out the mortgage of $150,000, leaving you with $50,000 and not $80,000 from above. 

It can make for a significant difference using larger numbers. Can someone tell me if the bank adviser I saw is right?

Thank you!

Chris

Congrats on the deal! This is an inspiring post. 

After deciding on a market, was your next step finding a realtor?

How long were you paying interest on the HELOC before refinancing? Was it just for the 2.5 months of rehabbing?

How did you come up with the $140K ARV when analyzing the deal? Is this through BP's calculators?

Thank you!

Congrats on the investment James!

Can you talk a little more on how you went about finding the property through online auction and share any difficulties with that process?

Thanks.

Jason, you misinterpreted what George was saying. In other words, he's asking "does an average college degree, lets just say a business degree, yield 50% ROI?"

Probably not. It could be that only the top 20% of degrees (ie. IT, engineering, medicine) are carrying up the ROI to that high because those degrees may have an ROI of 60-70-80% or higher. Perhaps a business degree only yields 20% ROI, who knows.

I agree with your viewpoint as it's objective and factual but the answer to George's question is probably no.