All Forum Posts by: DeMario Drummond

I have two new properties that I need cash for to speed up the rehab needed. I have two other properties paid off, but due to Covid, only one is actually cash flowing. I'm bring in about 10k a month from W2, my credit scores are 655, 655, 595, and my DTI is roughly 18%... Is there any financing options available for me with those stats, is my credit still too low? I do have derogatory private student loans of a total of 7k, and I'm curious to if that alone could be hurting my chances of getting financing. But I'm also a little lost, and uninformed about possible routes I could go. Is there anyway I could leverage either of my paid off properties through a HELOC or something, or do I need Active equity(like a mortgage) to do so? Am I missing a route that could be easier in getting cash for my rehab? Not sure how to go about crowd funding or partnerships? I don't mind just grinding and saving, thats what I'm used to. It's just I wouldn't mine shaving off 6-8 months of saving and piecing together the projects, if there was an option available that I may be unaware of. Any advice and/or suggestions would be greatly appreciated.

@Odie Ayaga

OK I got you. So what would be my best approach to buying an owner occupied home for less than listing/market price? Seeing that the only way you buy auction homes is with cash or hard money loan. I just wanna be able to pay direct to principal to get out of the loan asap.

I would like to buy my next property as my own home and I would like to somehow "hack" the process. I don't want a 15 or 30 year mortgage. I originally wanted to just save up 70-100k and try my luck at a dfw auction for a 4bd+ w/ pool.. I've recently secured a hard money loan, but I can't take it to the auction. I need to have a deal/house in mind before I submit the application. The loan officer said that wholesale or pre foreclosure would be my best bet.

With that being said, Im not sure what's the best approach.. The little RE experience I do have is in buy n hold. With wholesale or pre foreclosure, I don't even know what the numbers would look like for a good deal. Any advice? And could my general idea work? Could I buy a wholesale/pre foreclosure with a 3yr hard money rental loan as my personal home(I have a "friend" ready as the renter of necessary), and pay it off early by paying direct to principal? I don't want to break any laws, so please let me know if any of this would be illegal. Any help is greatly appreciated.

Both responses definitely help. I have no problem saving up the cash myself, it's how I've been buying all my properties, so no biggie... I was just trying to figure out the the numbers/reasons surrounding why or why not. Thanks

I'm currently searching for a private loan of about 100k-120k for an auction property that I would live in, yes live in. But eventually it could a rental property. I plan to grab a house in texas with or without this loan, but it would help me do it alot faster and the requirements seem flexible.

I have two properties in Detroit,MI owned outright that I could use for collateral. One in my name, one in my companie's(if that matters), both bring in 15%+ cap rate and worth at a min 75k together (haven't gotten them appraised for accuracy). I have a 100k+ salary and 10k+ cash for a down payment towards the points.

The problem I'm seeing with my research is that hard money loans are normally for 3-6 months and/or 12-24 months terms. And at an average of 7-12% I can't make that payment, but I can for a 3+ year term. I can even sweeten the pot and up it to 14-17% if given a lengthier term. I plan to pay the loan off in under a year if not sooner by paying over the arranged amount so that it goes direct to principal(at least that's the idea).

With all that said, the collateral, salary, RE portfolio... Would this deal be even considered by a hard money lender? Why or why not? Are they held to tight standards on term lengths and percentages?

Thanks

@Anthony Gayden yea for right now that's where I'm buying. I may grab a few properties down in Texas eventually, but for now Detroit.

@Dennis Maynard Thanks!

I backed into REI a little over 2 years ago. i chose the buy and hold method and i have no real complaints so far. Just looking for someone with more experience to give their opinion or tips. I have two single family properties paid cash. i plan on buying a third, possibly a forth before the year is out(cash). I have an LLC with one property under it, the first one i purchased is still in my name. Is an LLC per property sensible? Any advantages or disadvantages to the way its currently set up?

I have a business phone and number established, but i didnt need that immediately lol. I write it off, but still. Anything else i can wait on, or should stay away from...?? Getting a property management company worked out better than doing the work myself. I  I have a business bank account to separate funds, and thought it would be great to start building my business credit by getting a secured credit card. Is business credit necessary this early on? Any particular metrics i should be focused on(ie. Cap Rate)? In a general sense of things whats a good next move? Or at this point is it pretty much wash, rinse, and repeat? Any suggestions on books and videos are appreciated as well. Thanks

@Andrew Parker Sure, I dont mind at all.

What's going on everyone! I'm Mario, I'm originally from Detroit. I just moved down to Arlington, Texas this past May to finance my Real Estate Business. I work for General Motors as a fork lift driver. The money is great, but the work isn't mentally rewarding for me. So I save as much as I can and buy property in Detroit to rent out. I filed for my LLC in August, and I actually just got my second house yesterday 😁😁😁! The market in Detroit is great (in my novice opinion lol), so I plan to buy and hold until I'm financially free.

I would like own a bar, grocery store, or laundry facility, but for now I just want to build a solid foundation so that can one day be possible. I stumbled upon BP while doing research on the real estate business. So I'm here to hopefully figure out my next steps, network, learn, and give any help I possibly can to others in need.

I have an LLC, with now one property under it. I bought my first one in my name, I want to switch it eventually. I'm trying to figure out who should I get my business bank account with, then I plan to establish my business credit through Quill, Uline, etc.. If that is in fact the best way. I plan to grab a business credit card after that. I also need to establish my team, I have a locksmith, in need of a reliable handyman, etc. I'm wondering do I need to contact a lawyer or accountant at this early stage? Just trying to get established and organized, it's so much information to consume! Any and all input is greatly appreciated! Thanks

DeMario Drummond