All Forum Posts by: Chuck Ward

Quote from @Chris Seveney:

@Chuck Ward

Can you afford the home if it were conventional financing and you had to convert it to a long term rental?

Most likely, yes. However, the challenge to me is to capture her 3.75% existing mortgage at the same time preserving our cash. She needs to use the funds for a new home purchase, just not sure how much she needs on the front end. The asking price is appropriate for this parcel. Long term rental, not primary, is our goal for now.

Quote from @Michael Carbonare:

Try a long term lease option.  Minimal cash upfront, negotiate a monthly rent, lock in a price today that will benefit from any appreciate that might occur during the term of the lease.

That is a great idea! thanks

Looking at a $1m property. Owner having a hard time selling, we wouldn't mind owning, esp for Short term rental purposes.
Owner owes $249k.
We would like to use very little cash, maybe higher interest rate for the seller, balloon in 5 years should interest rates come down.
Anyone had success or any ideas you could share?

We have other investments, good credit. HELOC is tied up in rehab currently. That will get mortgaged in the next 30-60 days, freeing up $300k.
TIA-Chuck

Yes, you are correct.

Being in a Rural area, I am finding that DSCR doesn't seem to be an option for me at this time. I can cash flow an extra $1,000 per month with interest only payments at current rates.

This would apply to a BRRRR, Buy and Hold property strategy-- Anyone use a HELOC, (interest only) for a BRRRR with success for a multi-year length of time?

Seems that with a HELOC and positive cashflow, payments would accelerate the debt. If you had enough of these properties, you could then combine cash and accelerate those as each property is paid down, correct? And with the correct HELOC, you also have the needed funds for repairs. Why would anyone want a traditional mortgage or DSCR with the rates where they are?

Just looking for opinions- I can talk myself into anything....lol

I just spoke with Jason Park, he's on here - Coastal Capital Funding. Check them out.....https://coastalcapitalfunding.com/

Outside of whatever properties you decide to purchase, give your $350k work to do. I recommend putting that in to some type of investment account producing dividends and other long term growth vehicles. Then leverage that investment through margin lending to purchase your properties. The margin payback will happen outside of your property purchases, your interest on the loan is deductible, and you aren't spending your cash. Remember, it doesn't take money to make money, It takes other people's money to make money.

Personally I did this around 2 years ago and have purchased 3 mobile home parks and multiple SFH with local bank financing. We are now producing over $200k year gross income with $83k debt service. Investment account has a 34% internal rate of return at the moment. We have gone from essentially no retirement, to excess funds while also producing generational wealth for our girls.

Your best deals will be found off-market, so partner up with a few realtors in your area. Get a great accountant and locate a few attorneys- trust planning and real estate. I also have a financial advisor. If you are lucky enough to get the right people, they are going to take great care of you as you progress.

Get started today!