All Forum Posts by: Efrain Torrez

Thanks guys.  Didn't feel right from the moment they told me about the up front money.  I guess I was hoping I was just being paranoid but thanks for confirming.  I'll get my first deal soon enough.  Again thanks!

I got approved for $250k @ 5% for 30 yrs by a private loan company.  I now have to pay 2 points ($5k) for loan fees up front.  Since everything was done online by email and a few phone calls I'm not sure if i should be protecting myself somehow before I send $5k to someone I've never met in person.  How would you go about protecting yourself in this situation?  This is my first time getting a loan like this and this might be completely normal but I thought I'd ask and see if there's anything I should do.  Thanks in advance!

Thank you guys for your input. If anyone has anything else please let me know what you think. This is how I see it.

Current loan: $48k

Rehab cost: $50k (at most)

ARV: $190k

Cash out refi @70% LTV: $133,000

133,000-48,000-50,000= 35,000

So together with our original investment we'd now have $85,000 to invest plus a newly remodeled house with the space we need.

@Jonathan Greene

Yes the remodel would be something we need. It was either get into a new home and rent our current one or just stay and remodel this one. I've been improving my credit score but I'm still not where I need to be to get a loan. That's the reason I'm leaning towards remodeling the house. I'm just wondering if financially in a year or so when my credit score is good enough I can pull the money I put in and then some if possible so I can invest in a duplex or 4plex. Or do we just kind of keep dealing with the space we have now until we have to in order for the finances to make sense. Does this make sense?

@Jordan Deeney @Geoff K.

According to the zestimates its worth anywhere from $90k to $100k. A couple realtors both told me that if I wanted to sell it as is I could get $110 to $120k for it.

So we owe $48k on our primary home. I've got $50k in capital to work with. It's a 3x2 but if I remodel the place I can add an extra room after I redistribute the space correctly by changing the layout of the house. So 4x2 at the end with an ARV of about $190k possibly $210-$220k. I'm getting anywhere from $30k to $50k on estimates from contractors. I want to do the remodel then pull the equity or get a heloc so I can start investing. Good ideal? Why yes/no?

So does any one know if the property value goes up if you make it an ALF? Or if the value goes down for that matter?

So I've come across a home owner who stated she is just wanting to get out from under her property.  The property does need some work but I'm willing to move into it and rehab it while I live there.  Is it possible for me to simply take over payments?  The house is about to go to foreclosure so she is extremely interested in making a deal.  I won't qualify for a traditional loan and I basically don't have anything to put down other than $10k I have saved but I was thinking of using that to rehab.  She's asking $135k which I can negotiate down to what is actually owed.  Once rehabed the home would be worth upwards of $250k.

 My current home has about $50k of equity and my original plan was to finish rehabing it and then refinance it to begin investing but i ran across this oportunity and im thinking i should risk it and take on the new property if possible and rent my current home. What route would you take? What should I look out for?  

Hello everyone!  I am a new investor and very excited to get started looking for my first deal.  I' in the educational phase currently just analyzing a bunch of properties just to get good at it.  My question is this.  My credit is shot (currently working on it but it'll be a while) and have only a little over $5k.  Should I be focused on building my credit and saving money only right now or is there a way to get into my first rental property to get my investments started?  If there is a way is that even a good idea for me right now?  Thanks in advance for your advice!