All Forum Posts by: Darren Landerway

Hello everyone,

Im curious if anyone has heard about this new product provided by the VA that is similar to a 230k loan. Its called a VA rehabilitation loan - currently I live in the DC area and see a lot of older homes that have so much potential but I don't have the renovation money so I'd like to take advantage of my VA benefits. Is there anyone out there who has heard of this and can share the details so i can take advantage? Thank you in advance!

@Jay Hinrichs this is so awesome! As I've read through I see that there has been a similar response to what I was thinking; "If I only lived in ST. Louise I would jump on this!", trying to break into this market and learn hands on this would be a perfect start! 

If this doesn't work out for you in the area I'm sure there are some ppl outside the area who would live this offer - myself included. Happy holidays and again great thing you are doing! 

@bryan 

@Bryan O. this makes sense because I placed an offer in on a multi family in DC last year and was turned down for what i was told a cash offer, offering less then what I offered. As for finding a way to make the deal sweeter for the seller great idea "no money...sellers terms" kind of concept. Love it. 

Bryan Otteson this information is great to walk away with!! Thank you so much! The idea of appreciation with using VA/FHA and refi for 2 years is a plan I never thought of but now a consideration! You mention that VA generally causes a push to buy at full value? I'll dive more into what exactly that may constitute. Living in the D.C. area there are some homes that are being sold at a cheaper price due to location, estates, seller wanting a cash deal etc. so I've come across homes that are being sold thousands under market (that don't stay on market too long), and want to make sure I can get involved in the game. Thanks again for the advice. At the rate I'm going I may need to get you hooked to an I V with coffee so you can keep up! Haha Thanks again!

@william 

@Account Closed thanks for the input and thanks for your service also! 

@Account Closed

My understanding is that I can use it to purchase a multi- family type home? Maybe the verbiage i used "investment" wasn't the correct term. The idea is to purchase a multi-fan and house hack it while doing renovations on the home. So from this do you still believe its not a viable option?

@Alonzo Ramirez

Hey Alonzo, same goes to you sir! To answer your question I used a FHA loan to finance the property. It allowed for me to have low money down on the purchase and use whatever savings I had to do some fixing up. Of course i had to live in the property for a year but it was something that i intended to do from the start. Knock on wood its still a great cash flowing property now that both sides are being rented!

As for the investment idea and using VA, maybe i used the wrong term "investment", when i think of purchasing property whether its a place to live in for myself a rental property or a flip to me I consider it an investment. But you are correct with the statement. My thoughts are to buy next home (multi-fam) with VA benefit, live in one of the units (house hack) and rent out the others to cover the mortgage and some while I do renovations. Thats where I am at the moment with this plan.

Ive looked into the local REI groups but they are slim to non in this area, I've even looked on here to see if there were any groups in my area but ill keep on the search!

Lastly yes this is an overload of information just take your time and try to weed through the clutter! I just recently read a blog recommended to me by a person on BP called "how to develop a good BS meter"! by Bill Gulley - check it out! Good luck sir

@brent

@Brent Coombs thank you sir! I appreciate your 2c - the break down of what the numbers should look like made it a bit more clear for me. 

Hi BP world!

Ok so a newbie at this RE venture and been on BP for a couple months now asking questions to help me find a focal point on where to get started. Id like to toss out an idea and get a thumbs up or ripped apart.

I currently own some property in a different state that does well for me when you look at the numbers. When I bought the property my RE education was low (better now) and all I wanted was to own a multi-family that allowed for me to live rent free. After a few years of owning; I realized that there could be some financial freedom in this game and started trying to educate myself a bit more.

Currently I live in another state and not sure how much longer Ill be in the area; due to the fact that I am active military. So here are my thoughts:

- I would like to try to find a good multi-family deal using my VA loan. The hopes are that the deal may need some fixing up but I get a good enough deal where a small amount of equity already in the home.

- Rehab it then refi the home for close to full value and use money as down payment for another property to repeat on another good deal.

random numbers-

cost of home = $300,000

appraised = $350,000

rehab= $30,000

new appraisal ~ $380,000

refi = $360,000

down payment for new home = $60000

Now I know this sounds very similar to the B-R-R-R-R strategy and it isn't far off from it, but my understanding is that this strategy is done using lenders outside of a bank and paying off the property with cash completely. 

-So the question is... is this possible to do with the means that I've detailed? 

-Will there be a stoppage in refinancing from the banks at some point early in my venture seeing is that I won't have any property that is owned out right?

-Basically ... what am i missing if anything??

guidance would be greatly appreciated!

~Darren 

Hello Bill Gulley where can I find your blog? Also whats your website. Any other book recommendations?