All Forum Posts by: Cynthia Carrasco

@Sara Pritchard Following. Good questions I am curious as well, also in FL.

I missed it! When is the next one???

@Andrew David Evans I'm going to look at it tomorrow morning to see what type of repairs it needs.

@Robert Guilfoyle thank you for that info on the HML, you are probably right, now that you mention it I do remember reading something like that, that's why I asked my questions. So after I see the property tomorrow, if the numbers make sense, I might just fix and flip. It would be a great small project to start and get my feet wet.

From what I have read and observed, everything you need to know is right here on Biggerpockets.com. The podcasts are very informative and so are the webinars. It's a great start on educating yourself in an environment where people aren't looking for anything from you. There are tons of knowledgeable people here who answer the posts. There are thousands of posts where you will find the answer to ANY question in real estate, you just have to do your due dilligence. If I were you, I would start by deciding which real estate niche you want to pursue, then just dive in to educating yourself right here.

Thank you for responding @Mark Fedorov. From what I understand, and please correct me if my perception is wrong, when you borrow from a hard money lender you are making interest only payments to them. The one I want to use amazingly offers a 17 year loan with a 70%-90% LTV. I would most likely get the 70% as it would be my first deal with them.

Right now I'm spending $1500 a mo. on rent with all utilities included. I cannot see the HOA, Ins & utilities adding up to 900 a mo combined, but am waiting on this info as we speak. Per my assumptions based on my knowledge of the area, my expenses to hold this property will be somewhere between 1000-1200 mo with me living in it, if the lender allows.

Like I said comps are between 85-88K and are on the rise. One thing I do have to check is the condition of the condo and factor repair costs, which could change everything.

This is a creative financing deal. My concern was knowing how to properly put it together with private money being the 30% and hard money being the 70%. I want to make sure I do everything legally, so it does not come back to haunt me later.

Again, I'm still waiting to hear back from the agent as far as HOA and terms of the association, also need to see condition of unit, which I plan on adding a "subject to inspection" in the offer if I make one. Am I missing something thinking this is a good first "buy& hold"? If I am please advise, thank you.

Ok here is the deal, I found a 1 bedroom 1 bath condo in foreclosure for $50,470 don't know the sq ft yet, but based on the 1 bedroom, 1 bath, on the same street within a few buildings, other condos are going for $85-88K. Obviously they are taking cash only offers because of it being a foreclosure. I would have to live in the property for at least a year before I can rent it out.

Now, I have a friend who wants to invest, so I want to use him for 30% down, giving him 12% at the end of 18 months when I plan to refinance, and use a hard money lender for the other 70%. Hard money lender wants 12% plus 2 points, from what I have read on their website, which is fine as this is my first deal and establishing a business relationship. I have an S-Corp. set up for over a year now. I plan on using the corp to buy the property. I know that I will suffer a bit in taxes for it not being an LLC.

My question is how do I structure this on paper with my friend's 30% down and 12% interest? The hard money lender works with a title co. so I will be checking for liens, clear title etc., but is this something that I can share with the hard money lender and they will put it together with their closing team? And will the hard money lender allow me to live in the property for a year?

To most of the seasoned investors, this may sound like a real novice question, but I appreciate your feed back. Thank you for your attention in this matter.