All Forum Posts by: Devin Deswert

FHA loans are also typically a little bit more expensive on the closing side. Then refi fees if applicable. But why even do a cash out refi? What's the goal? Or is it because everyone tells you it's the way to go? While chanting the whole other people's money thing? Let's recap what you are doing and the two options: Buying a duplex for 170k valued at 170k and on top of payments you can come up with a extra 20k. While doing so you will be living rent free according to your numbers. I don't know the fees so will have to go simple and not about to do a full pro forma either. Option 1 : 3.5% down for FHA let's call this 6k down plus roughly 6k paid in on the loan though payments. This puts you around 7% LTV then add in your 20k that puts you at 19% LTV. So even if something crazy happened and you saw no vacancy, no maintance, and saw a 10% appreciation in Wisconsin. You could in theory pull out 9% of the value for a total of 15k. Still that's not including all the fees associated with lending. Not to mention what that 15k really cost you at whatever interest rate over 30 years. Option 2 : sit back and enjoy being a landlord for a couple years, improve the property to limit maintenance for when you are not living rent free or position it for sale/1031 X. Keep your saved 20k for the next property or use it to invest with a partner or solo from the safety of your low cost of living. Plan for a 2-3 year time line I would say before this duplex is ready for a cash out refi. But thats my opinion. Also I don't know all the numbers, your goals, home life and my investment views lean more to the conservative side to what's typical of the broader bigger pockets base.

I checked out lending club. Put 3k in to see how it would perform, putting it on auto invest at 40% A 30% B and 30% C. Compared to standard low cost etf's it's either inline or underperforming with higher risk. After some time on the loan they offer a refi which makes it a new note and shows paid off. Then you have the people who seem to default almost right away. So out of my 226 notes at about the year mark I have 37 fully paid off, 10 charged off, 1 in default and 6 30-120 days late. So I decided a few months ago to check the underwriting process. I applied for a 20k dollar just because loan. Submitted my social and stated my income... I was approved and shocked since I didn't send in a w-2, pay stub or bank statement and my employer was never contacted. Honestly not even sure if they pulled my credit. I called them up and said "hey I need the money when will I be approved" they said I just needed to e-sign the last document they sent and would get the money in 24-48 hours once a few more investors funded the rest of the loan. I asked about sending over financial docs and they said they have a algorithm and that be doing so is not needed. So that to me is a little scary the way they vet borrowers.

sounds like you are wanting a park city condo. Can't speak for roi as they are pretty spending and the hoa's are pretty high. But they are supporting a resort level of amenitys not just a typical condo. 

The problem is pretty much you. There has been plenty of threads on this and it all comes down to how you value labor. I am not even a carpenter any more, but the demand for my trade is in so demand that I don't bother putting on my nail bags for under 35 at a hour 6 hour minimum. It's almost a dying trade do to the fact people don't want to pay for the work so there is less and less talent in the pool to choose from. The outlook for this is only getting worse. My generation wants to sit behind a desk anyways and complain about student debt. To back up what Jay said. Why would we even bother. We can just go do our own thing on the side. When I started as a apprentice carpenter which involved a 4 year apprenticeship to include school. I was given the advice from my journeyman. Save up the industry is feast or famine. Once you get to a point start getting rentals.

I can say I find whole thing annoying for a few reasons, maybe even harmful but that's case by case not a broad generalization. Not because of the "deal's" being made but often time lack of transparency between a "wholesaler" and the seller then "wholesaler" buyer. I'm not going to knock them, I feel part of it is the niche is relatively in its infancy. Secondly it some how became a way for green investors to break into REI, can thank the internet and guru's for that. My biggest issue is lack of exit strategy that protects the client. Which no matter how you cut it the home owner is your client. You came to them, you set the price, you told them the home is either sold or will be sold. A business that doesn't take care of clients are not in business long. If they aren't clients then they are just someone your trying to take advantage of. Which is not for me to chastise what consenting adults do no matter how shady. Then once they snag one they become experts and can do a full inspection, estimate rehab costs and figure arv. So let's recap what a wholesaler has in his/hers tool belt or must have when on how they present themselves. • Marketing • Home inspection • Home appraisal • Project manager • General contractor • Broker But the vast reality a wholesaler has is a couple forum post's on BP that typically looks like this: Post 1 "Hi new to BP interested in REI" Post 2 " I have no experience but I declare myself a wholesaler" Post 3 "how do I wholesale" Post 4 "sent out flyers and no bites now what " or " got one I need a buyer now" So here is my 2 cents for wholesalers. Think of how much better your business would be if you didn't have to rely on using some **** clause to get out of a contract or even up against that closing clock at all. Instead have a open and honest convo and bring value to the customer. Take it to market and adjust if need be. Your all ready working outside of the box and sometimes law's. But your using a system and contracts meant for buy/sell and trying to mold it to wholesaling. Why go though all this trouble but not put in place the mechanism to work successfully for you and your client. My 2 cents for the BP community is to relax some and suggest to newbies that wholesaling is not for the inexperienced, depending on the state illegal, and really better paths to take.

I don't know if the ROI is as good as you think. At 160k that's only a 25k increase. Then subtract Realtor fees and taxes on gains since you have only lived there a year. Then you still need to buy a place and that will be closing costs on that side, and your dollar goes less today then it did a year ago, plus rates are a tad higher then they where a year ago.

  You would need to figure out your fees and taxes if any on a sell then what your next Homes closing costs would Be. If you where just selling then ya you might make a little bit but to sell then buy I bet you would end up with a net loss. 

Only real plus side I see is on a 3.5% loan you have PMI most likely and you might be close to being able to take that off soon, But I would imagine that's less then 80 a month. If it was me I would be saving up what I could for when I could make a smart move and rounding up my monthly payment. Like if you are paying 800 a month I would do 1k a month. Actually start digging into princable of the loan.

So many expect to get a cash flowing property with zero out of pocket. Wonder if they would also expect to buy. Profitable business for nothing.

Hey,

Investor in buy and holds never built from the ground up. Was in college for urban planning, but between deployments in the army I never finished. Now I just work 2 weeks in the oil fields then the other 2 weeks I work as a carpenter in SLC as I figure out a good time to head back to school. Ramping up for another buy and hold about 10 months out. I have a presence in Portland And SLC. 

ya I was thinking of working on something like that from mileage. See if it can just pull the distance from google maps then put it on a clipboard then to excel

One problem I see is water always finds a way. Flex seal creates a smooth non absorbent surface. So water would run out to the floor. The result is water running down between the cabinets and linoleum, now you have wet sub floor, discolored linoleum and eventually chasing down mold issues. Or runs between cabinets and ruining more then the one under a leak. Why would you not get a much cheaper drip pan for under the sink?