All Forum Posts by: Dominick A.

@Erickson Sainval

Thank you. I will check it out. I appreciate it.

Hello,

Could someone help me out? I’m looking to find financing for a deal but am curious about what private money loans entail? The same with partnerships. Do they fund the entire deal, or a portion like the down payment and you pay the mortgage and the private money back through your cash flow? Do they take equity instead? Any explanation would be welcomed. Thank you.

@Jason Wray

Thank you for your response. I have utilized my FHA loan option this past year for the home I currently live in. Initially it was to be an investment property but I lost my job and decided to keep it as a primary residence until I can rebuild my finances and credit.i have since had my surgery and have found another job but for that 6 months I couldn't work, I had 2 mortgage lates and my credit took a huge hit but it's being repaired through me paying my debts down and paying bills on time since. I also have not been on my new job long enough according to my bank. I am waiting the necessary time period to pass after the mortgage lates to try a more conventional route; also I lack the capital is my main issue. Eventually my primary residence will fulfill its intended purpose or being a rental but I've to get some other things in order with it first before that is feasible. With this being the case, I opted for more "creative" methods of finance.

Hello everyone,

I am am relatively new to this and

I would greatly appreciate any advice or suggestions anyone has to offer as I am stuck in a rut. Recently I finally got the courage to turn the knowledge I’ve been accumulating the past year and a half of me discovering my love and passion of real estate into action and start looking for deals, looking for deals with NO idea on how I would fund them. I believe I have found a great deal and have run numbers obsessively to make sure. I was curious about private money lenders and loans and partnerships and how they would work in this instance. If I found the deal should I look to these sources for just the down payment? If so would I repay the loan of the down payment through monthly payments on top of the mortgage that I secure? Or do they finance the entire purchase and I pay them back essentially taking out the mortgage with them? Or is it that they become an equity partner and I pay them monthly on top of them having an stake in equity or is the equity the term of the deal essentially like they finance and receive half or whatever percentage of the equity that was agreed upon? I’ve been reading that private money lenders are short term lenders and I am looking to buy and hold. If not, what other sources of funding would anyone recommend for my situation? Any advice is appreciated.

Hello everyone, I am am relatively new to this and

I would greatly appreciate any advice or suggestions anyone has to offer as I am stuck in a rut. Recently I finally got the courage to turn the knowledge I’ve been accumulating the past year and a half of me discovering my love and passion of real estate into action and start looking for deals, looking for deals with NO idea on how I would fund them. I believe I have found a great deal and have run numbers obsessively to make sure. I was curious about private money lenders and loans and partnerships and how they would work in this instance. If I found the deal should I look to these sources for just the down payment? If so would I repay the loan of the down payment through monthly payments on top of the mortgage that I secure? Or do they finance the entire purchase and I pay them back essentially taking out the mortgage with them? Or is it that they become an equity partner and I pay them monthly on top of them having an stake in equity or is the equity the term of the deal essentially like they finance and receive half or whatever percentage of the equity that was agreed upon? I’ve been reading that private money lenders are short term lenders and I am looking to buy and hold. If not, what other sources of funding would anyone recommend for my situation? Any advice is appreciated.

@Michael Sato

Thank you sir. I appreciate the information.

Hello everyone,

I am relatively new to BiggerPockets and the community but have been binging on audiobooks, webinars and cramming as much info as I can and am learning a lot. I’ve seen the pro membership and it’s perks here on the website but I just (for financial reasons) cannot afford the annual membership at this time. Does anyone know if you start out as a monthly member, at a later time could you convert to an annual membership and if you did, would you still get the annual price and perks? Or does that only apply to new members who upgrade to the pro membership? Does anyone have any information on this? I greatly appreciate it. Thank you.

@Jeremy Wirths

Thank you. Yes I have run comps for similar homes in my area. The rent estimates I’ve gotten running numbers fluctuate however. The rents I’ve seen for similar homes indicate I’d get enough to generate at least $200 per mo in cash flow if not more. The appraisal I got at the time of purchase indicated I got a pretty decent deal so with the additions and improvements I’ve made I can only imagine it would be favorable. I just feel since I just purchased a little over a year ago it may not be worth it to refi just yet, or am I wrong in that?

@Leopoldo Vazquez

Thank you I appreciate the advice. Since reading this comment I have looked into. I like the idea, my fiancé does not. I've shown her the numbers and she just isn't on board living in a condo. Even if it's in the interim or a short term. She says she doesn't wanna keep moving our family around. I think it comes from her fear or little understanding. I will continue to try to educate her on it as that's a great idea. I purchased my original home with the 3.5% FHA, and I was told I would have to refinance out of it BUT, silver lining is I could use it again. I also have a VA loan I could take advantage of but I think I want to use that on my dream house if that makes sense, idk maybe it's foolish to think that but that's the idea. I have never thought of the idea of renting a condo. I will have to look into more in depth. If I'm not mistaken, aren't there HOA fees associated with condo ownership? It doesn't matter one way or the other, I just would need to get my confidence up when dealing with those as I've read those can be cash flow killers. Maybe I'm thinking too conservatively and need to open my scope a bit. Thanks again for the advice.

@Chris John

That sounds like a great idea. Thank you. I don’t think I have tremendous equity in the property (enough for 2 down payments) because since I bought it as a personal residence, I wasn’t as concerned as finding the best deal. I got a decent deal on it but for my goals, would I need a little more time to let the appreciation work for me? Would you recommend getting an apartment or something for like a year while I collect a year’s worth of cash flow to accompany my equity that I pull out? Thus ensuring I have a bit more to get started with on a second property, and having money come in from my home? I only mention this to combat the possibility of low equity ($10-12K). I like this idea. I really appreciate it.