All Forum Posts by: Dan Barli

What are your goals with this property Joshua? Did you get an estimate for how much it will be to repair the home and fix the mold, sump pump, water damage and other "disasters"? Those will have to be paid by you out of pocket. Also, the lender will do an appraisal, so hopefully the damage does not cause the value to come in very low. With the amount of money you may need to spend, you may very well be at the $110K range you see other duplexes for. Tread cautiously. 

My pleasure. Keep us posted on your progress! 

That's great Xavier! You should speak to some commercial lenders and look into certain SBA loans for newer businesses. That may be able to help you. You can of course also deed the property to your personal name and close with traditional residential lenders. 

You should always have your last "R" strategy lined up before buying the property. If you cannot refinance, you may find yourself in a loan that is not affordable or eats up your cash flow. What type of funding did you secure? Is it short term or longer-term? Are you looking to keep holding the properties after you rehab them? 

Congratulations on your first deal!! Good to hear success stories! 

@Tanuja Nihir Shah owning and renting out properties is a great step towards building your wealth. That does not mean that it's easy. What are you looking to gain from owning rentals? NJ does in fact favor tenants, but you can look at other markets in the country that are more landlord-friendly. That's what I did.

@Jimmy Morgan the first thing to do is determine what your goals are. Are you looking to rehab homes? Buy for cash flow? Wholesale? After that you can figure out financing components but they will vary based on your strategy.

It is not "necessary" but a very prudent thing to have an attorney to protect you. If you do not use an attorney, there is no one in the transaction who is representing you. It is wise to have a real estate attorney review all the contracts for you. 

@Steven Merenberg the rate you have isn’t putting money into your pocket. If the actual numbers are better and generating more income for you with a refinance, then I think you should go for it. Cash flow will make you feel better than walking around thinking of your interest rate.

@Murali Murthy I have to agree with Charlie on this. Unless you’re an experienced title examiner and searcher, it can cost you significantly more money down the road. Get a local title company and prudently obtain title insurance.