All Forum Posts by: Elias Munoz

Hello biggerpockets folks I need your help! I been looking to buy my first real estate property this year and a rare opportunity came through that I cant pass up. We are trying to figure out every way to make it work. We found a off market house in a great location but needs work. My wife and I know the owner really well and we chatted with her about selling the house to us. The house use to be her parents but they  passed away. She now has it as a rental but is willing to sell it us cause her parents wanted the house to go to another young growing family to continue the tradition. The house is 100% paid off no mortgage. The great thing she said shes even open to do seller finance to us if we could bring her a good offer. She doesnt rely on this house income. Here's the tricky part to the story. Her niece owns half the house but doesnt want the house and just wants half the money of what is worth. So here are couple questions I need help with. 

1. Can our friend (half owner that we know) pull money out of the house to buy out the niece? What are the Pros and Cons about pulling out money? Is their any fees? We really dont want to get a loan cause the mortgage payments would be a lot and wouldnt have money to rehab the house

2. If she could pull out money out of the house to buy her niece out what kind of creative finance strategies can we offer. She said to bring her a offer. This is where i need your help. I'm open to suggestions.

3.Here what I was thinking. The house needs a good about of work but its in a B+ neighborhood and its the worst house on the block. I'm in construction so I could do most of the work myself. It has two garage. One is detach so our plan would be to make that into a ADU to help us pay her our monthly payment. Lets say our payment would be 2000 a month and the ADU rents out for 1500. That would be only 500 out of our pocket and could do more after the house rehab. After the ADU is done we would start the house rehab to bring the ARV up. We would do a cash out refi and pay her a good chunk to pay her off sooner. Hope everything I said makes sense. Thank you for your time.

@Scott Wolf what if I know the private lender for years and have a good relationship with him. You still think it’s not worth using?

@Mackenzie Grate I’m thinking about asking the private lender for the down payment and rehab cost which I’m looking for something cosmetic at first.

@Ryan Garrison thank you for the response and advise. Yes I do have the private lenders in mind. They are one of my good friends parents which I known my whole life.

I have a question about using private money. I’m looking to buy my first investment this year. I have the capital but was thinking about using a private money lender instead and having my fund as reserves. My plan is to do the live and flip method. I do Constuction for living so I’m handy and could do the work myself. I would want to buy something with cosmetic work. After 6 months refi and payback my lender. Then repeat the process. Will this work or should I just use my own money? Thank you for taking your time to answer my question.

Thinking about buying a off market investment property that just came up in Muskogee. Just trying to do more research before buying. Property is located on eastside of Muskogee on Virginia st. Does anyone know what kind of neighborhood that is (a,b,c,d) and if it’s worth investing there. Do you any contractor/handy and property management companies you recommend? Thank you in advance

@Rick Jarrell thanks for reaching out. What made you invest in Cleveland? Do you recommend any agents and lenders. Are you hiring a GC to rehab your property

@Michael Swan @Michael Swan wow just read your bio. You’re killing it in real estate! Those are some goals to look up to. I’ll start doing some research in those areas.

@Joshua McMillion thank you this will help.

@Remington Lyman thank you I’ll start doing some research in these areas this afternoon