All Forum Posts by: Account Closed

Hi,

I'm planning to buy a 3BD/1.5 BA house (cash) and using 0 % apr credit cards for a year to finance the rehab costs. After the rehab is done, I would rent the other 2 rooms which gives me plenty of cash flow to pay the credit card debt. After the rehab and roommates move in, I want to use a HELOC on the property. I would then buy a condo with 5 % down and use the rest of the HELOC to fix and flip properties.

My questions are:

How soon can I get a HELOC from a bank or refinance the property?

Would a bank be willing to lend me money for another personal home? Wouldn't this be an issue since I'd have a HELOC and a property already on my name? I'm just wondering if this is actually legal.

Hi, 

I'm considering buying a condo for myself. However, I'm a bit concerned because I'm planning on refinancing a property and pulling equity out of it. 

Assuming I buy the condo, is it possible lenders would deny my refinance application ? The property is owned free and clear. Right now I don't have any debt, but if I buy the house my debt to income ratio would be close to 35 %. 

@Jonathan C. Wow, that's pretty impressive, great job this is very inspiring.

How many deals do you think you closed based on your profits? What was your response rate? What was your average profit per deal? and why did you decide to co-wholesale most of the deals? If you go solo, wouldn't it maximize your returns? 

Again, great job and thank you so much for sharing. 

@Sherrice Baines Were you able to find a title company that handles double closings?

@Kim Handelman I currently work with a realtor and he provides Comps, even CMAs although I don't like to ask him for CMAs because they are more time consuming. He provides this information because I give him leads that I don't want  (short sales or people who want to sell the property at market value). You need to provide a benefit/incentive for them and develop a good relationship with them. 

I'm not sure what are the costs of getting a license but it's something I'm considering as well. You'd save 3 % commission fee if you list your wholesale deals through the MLS and if you run mail campaigns, you will run into people who want to seller only for Market value. In which case, you would just offer them to list the property on the MLS, and get your commission once the property sells.

Ps. Just to clarify, the assesor's office is just a value for your reference as well. It doesn't mean the home it's worth that amount. It just gives you a general idea of the property value for that particular area. 

@David Brown Here is a great guide from J scott on how to estimate ARV, It's pretty helpful.

http://www.biggerpockets.com/files/user/JasonScott...

I was using Redfin.com to pull my comps. Right now I have access to the MLS because I developed a good relationship with a realtor. I suggest you do the same. a word of caution, don't use zillow estimates, they can be way off depending on the area you live. You can also use your county assesors office. Google search "your county" assesors office. Every year, your county gives an estimate on the property values around the county.

If you're wholesaling/rehabbing, I suggest you use www.trulia.com and city-data.com. Property values can be quiet different even within a few blocks. Hope this helps. 

REIAs, linkedin investor groups, craigslist, ebay, bandit signs are just a few. I've never done it with bandit signs but I've heard they have great response rate. They are illegal in most areas so make sure you know the rules in your area. 

Yes you can. Of course, the proceeds of the sale would need to cover the amount of the loan owed to the bank. So you would be selling the property for the loan amount + your desired profit. If there's no equity on the house (current loan is greater than the value of the house), then you can negotiate a short sale ( bank would be willing to take less money than the loan amount owed to them). 

From what I've heard, cash for keys is the most affordable option. You basically just tell the tenants you will give them money if they leave the property. You can also go with an attorney so he can evict them. But that will be more expensive. I haven't gone through that process yet but I imagine it would be a bit expensive.