All Forum Posts by: Corbin Wafford

Hey BP,

For those of you that have successfully done a deal with a partner(s), how can one approach a partnership deal without bringing much capital to the table?

I feel like it would almost be along the lines of finding a deal and instead of wholesaling it, find an individual that will fund the deal that you bring them for 50/50 of the profit/revenue. 

Are there any other alternatives?

(Thanks!)

@David Weintraub

So are you saying just use the conventional product from the start rather than using HML and refinancing to a conventional loan?

In my post, it may be unclear, but I am trying to say that the conventional route may not work for me with 15% down, however, the FHA may work but would be the timely/strict process.

Currently, I am looking to house hack a multi-family home and I am running into a slight road block with the funding. Instead of saying it can't be done and going back to watching TV, I am looking for "how can I make this work". 

The FHA loan seems to be the only option I have seeing as I do not have enough capital available on the front end for a conventional loan down payment of 15-20% (I do for some properties, however, I would then not have any emergency funds, which I do not want to do). I received the following message from one of the lenders I have been working with:

You must put down 15% or more on a 2 unit/duplex like you’re looking at- you can definitely do 5% down (or possibly less) on a single family home, but the federal guidelines for a Conventional loan require a 15% or more down payment on anything above a 1 unit. We could look at an FHA loan, which would allow as little as 3.50% down on a duplex, but there are down sides to this and we would want to make sure the property would meet FHA guidelines after you’ve seen it- I feel confident we would get approval on this if the home would meet FHA guidelines.

So the FHA route is clearly applicable here, however, I have heard that the FHA is a strict/timely process with lots of additional fees associated with it. What alternatives do I have here? Should I shop around with other local lenders? Should I pursue hard money (although I have read that using hard money is more appropriate for fix and flips)? Should I look for a private lender?

I am doing my best to think of creative financing but would certainly appreciate any sort of help you have to offer!

@Ben Wilkins I would not mind seeing some examples. 

I am a "visual learner" so anything helps and I am sure it will benefit other viewers!

BP,

I am making moves to invest into a MFH home here shortly but wanted to ask those experienced in MFH investing (Duplex to Quadplex), how are you running comps in the area?

I am finding it difficult comparing similar MFH properties to one another as there are multiple variables that do not match up completely. I can't imagine you can compare a duplex to a SFH or a duplex to a triplex/quadplex. Maybe I am wrong. Hence the reason I ask!

Ex) If I find a duplex in an area and within a 5-10 mile radius there are little to no active, pending or closed (past 6 months) properties with similar criteria. How can I effectively pull comps to evaluate whether or not this would be a good deal and determine ARV (as most times, you need this to make the MAO)?

I can surely use my agent to help, but understanding the logic/math behind it would be very helpful so that I can analysis deals more efficiently on my own.

Thanks for the help!

@Joshua Dorkin @Brandon Turner 

Appreciate you guys using this question on episode #239!

The question was a bit drawn out and unclear but it was awesome hearing you guys talk about it. 

Thanks!

Could someone explain or provide some insight on the best way to pull public records on a home?

I am on Trulia and it says this one property I am looking at is "off-market - public record". Just looking for the best way to pull info on the home and to potentially contact the homeowner.

Thanks!

@Niyi Adewole Could you PM your realtor's info as well?

Thanks!

Hi BP,

I am doing some of my first property walk-throughs this weekend and I was curious if any experienced investor could provide some tips/tricks on what I should do before, during, or after the process.

I have heard to take a lot of pictures and check the ceiling for water damage. Any other things I should look out for or ask questions about?

Anything helps,

Thanks!

@Julie Hicks  

Hey Julie,

If you don't mind, can you explain why you encourage hard money lending for a first-time investor?