All Forum Posts by: Cody Wood

Awesome! Thank you both so much for the response I appreciate it. Hopefully I have some luck in the coming weeks with this.

Thank you!

So I sent out postcards in Pensacola Florida. I was curious to here your process of what you say in the initial call when it comes in.

I have previously just focused on building a rapport with the homeowner, asking a few question about why they would be interested in selling, take the property address down then call them back with the offer.

Is there anything wrong with this or should I add anything on to the initial conversation?

I intend on BRRRRing these properties buy may wholesale if the numbers don’t work.

I’m looking at brrring a property in a c neighborhood. The property has an unfinished living space above the garage. My question is how hard would it be to rent just that bedroom. No access to kitchen or anything. I am pretty sure I could add a bathroom.

@Brett Potter hey man, that may not be that big of an issue. You are working full time in a w2 job I’m assuming. You have a two year history just not in the same industry. It happens a lot more than you’d think. All lenders have to do is show the ability to repay the loan, if you are established with your company and plan on being there for a while you should be able to get past that pretty easily. If you are 1099 that may be a little tougher. I hope that helps man and good luck to you!

@Jonathan Ramos no such thing my friend! Maybe even be an opportunity for you to rent by room if you are looking for investments yourself. He could be your live in property manager.

I’m hate to hear about the apartment though that is so rough. Good luck to both of you! Let me know if you ever have any lending questions at all.

@Jonathan Ramos build credit and save. I believe he would have to be 18 to be primary on a credit card, but if he can ask someone responsible to be an authorized user on theirs as long as they pay it off regularly that would help. Tell him to try to save $500 or $1000 so as soon as he turns 18 he can get a “secured credit card” meaning secured by his own funds. That is one of the quickest ways that I tell my clients to improve credit quickly. Only use it for gas like one time a month or something. For his first job he will probably want to go w2 with 40 hour weeks for sure. Other types of income like 1099 or part time is just much harder to verify and will almost always require 2 years. Maybe try wholesaling in the meantime. Deal finding is obviously the lifeblood of the business so getting good at that never hurts. Not sure what his interest are but real estate seems to be one, maybe get on a team doing that already and get that knowledge.

@Ed Goble I know you kind of addressed this, but why not a line of credit on the house for liquidity? You would be getting money much cheaper and paying yourself back instead of an outside company. Once you get a deal or two under your belt outside financing is typically much easier to secure. Private money is always good if you want to develop terms with friends and family. With you being very food with money it seems they may be willing. Good luck to you man!

@Jonathan Ramos he would have to have full time income, not part time, also established credit lines. So if he has only been authorized user on a card or never had a car in his name or anything that may be a difficult hurdle. It is certainly possible. They will look for several compensating factors such as credit history, LTV, and DTI. Also, a co-signer wouldn't hurt the cause

@Danielle Moniz it could be beneficial but you have to take into account the amortization schedule. If you are year 7 or 8 of your mortgage a good amount of your payment is being directed towards principle. Once you Refi you reset your amortization schedule to where you are paying 99% interest and 1% principal. So you won’t be gaining as much equity as quickly as maybe you are now. Not saying it’s a bad idea but just be aware of that. Also, you could just do a home equity line of credit on the property which would reduce your monthly payment by even more and you can self direct your principal payments. That’s what I did. Technically they have higher interest but there isn’t an amortization schedule and you are usually only obligated to pay interest only then you can make principal payments as you deemed fit. Just a thought!

@Jonathan Taylor Smith

Thank you for the reply! That makes complete sense. I am newer to investing so I thought the norm was a 14 day due diligence period. Quickly learning that isn’t the case. That is what I offer with sellers calling me directly, but obviously dealing with a wholesaler is a lot different.