All Forum Posts by: Devon Remington

I have a friend of mine that ive known for a few years and weve talked about doing deals together but we never made it happen. hes currently in the process of building a house in the greater salt lake area that he has under contract for 750K and current market values of the house once its done put it around 950k - 1.1m because of the rise in interest rates his estimated payment has increased almost $1000+ per month and thats more than he wanted, so his plan is to get the house immediately put it back up for sale and collect his roughly 200k+ in equity and buy something with a lower payment.

Now, where i come into play is he is wanting some money to help with down payment and potential holding costs. hes wanting 50k and he'll pay me 18% ROI his intentions is not to have the money for more than 3-6 months so I would make roughly 10K for letting him use the money for 3-6 months. does this sound like a reasonable deal? and how would i structure it (contract or the like) to make sure were both clear on amount being borrowed repayment plan, and penalties if he needs to hold the money for longer? etc. any insight appreciated TIA.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $14,000

This has been my first real estate investment that i purchased a couple years ago, still trying to figure out the next steps with the crazy Utah market!

What made you interested in investing in this type of deal?

My father has always had his hands in real estate with buy & hold as well as flips. the monthly cash flow he brought in made me realize a young age that it was something I wanted to do, to achieve financial freedom but to also make my money work harder than I do!

How did you find this deal and how did you negotiate it?

I found this deal with the help of my father who also happens to have his realtors license. I was young (20) and didnt really know the game but he was able to help find the deal and negotiate almost 20k of concessions.

How did you finance this deal?

I used FHA for financing due to DTI being tight, but refi out after 1 year to conventional

How did you add value to the deal?

I have added a fire pit and sprinkler system, both of which I have done myself, other than that the deal was pretty much turn key.

What was the outcome?

Everything has gone well thus far. currently house hacking and trying to make another move.

Lessons learned? Challenges?

My biggest challenge has been financing for the next deal sue to house hacking and having several different leases no lender will count the income currently working to overcome that hurdle.

Just got offered an interesting opportunity and need some insight. 

said person is currently wrapped up in what was supposed to be a fix and flip but it was taking longer than expected and over budget so it is now getting turned into a long-term rental they are unable to refinance out of the hard money loan due to credit issues using lines of credit to fund the rehab. I have good credit and they want me to refinance and hold the loan and asked what I would want to be compensated for doing that. Preliminary numbers show the house would cash flow $600 they asked how much of that I would need to make for it to be worth my while and I told them I would get back to them in the morning. I'm not sure what is fair for being solely a credit partner and not having any money in the game but still having the risk of holding the loan. 

as a side note they offered short-term or long-term partnership depending on how long I wanted to be involved.

Please let me know pros, cons, why you would do it, why you wouldn't do it etc.

 i mean no disrespect or disregard i appreciate the feedback, but none of those were solutions to the finance issue besides getting a partner which i have of course tried, being 20 years old i have no friends that have money/job or even understand what im doing, and no one older will give me the light of day which proves difficult. Sub leasing is an option but i presume ill have to leave some margin on the table for that person to take on that responsibility. 

I never said i couldn't, Ive been trying to figure it out, thats why im here. i think you've gotten side tracked from what my original question/issue was, Finding the deals isn't the issue, and affordability isn't even the issue. I can afford another house IF the banks would count all 3 of my leases. with the area i live in renting by the room is where the moneys at.  a house that would rent for $1800-2000 as a whole would rent for $3600+ rented by the room. i don't have a deal finding issue i have a finance issue.

I think that would be the ideal situation but multi-family houses usually sell no less then 750K where im located and thats extremely far out of my ball park, But definitely something to work toward.

I could, BRRRR is actually something that i wanted to try but figured it would be down the road a little further, might come sooner than I was expecting.

Alright guys so ill give a little bit of background, im 20 years old bought my first house 8 months ago and i started house hacking its a 4 bd 2 bath single family house and a couple months ago i decided i was in a position to acquire another property so i called up my loan officer and we were running numbers and he said that because its a single family home the banks will only count 1 lease agreement not all 3 which pretty much makes it impossible for me to approve for another property. My question for all you investors out there who are house hacking or renting in general how is it you are securing loans for additional properties, is there a way to get them to count all the income? ive talked to 2 different local loan officers and got the same answer.