All Forum Posts by: Eric L.

@Account Closed did you buy 155 N Front St?

Financing was available for the last home I purchased through Auction.com, but most are cash only.  In fact I just did a search for PA homes and this resulted in 361 listings.  You can choose "Financing Available" as filter to your search and this resulted in 1 listing.

Hard money loans are accepted too, however, I drew from a LOC for this purchase.

@Daniel Chu how do you know your partner will take on more responsibility if you don’t even have the deal yet? Finding an agent to work with, touring homes, analyzing deals, finding lenders all takes time and is spent prior to closing. Who will take lead here?

Will your partner be meeting with contractors or will he be doing the entire rehab or will he be purchasing / delivering supplies? Are you looking for a small rehab or full gut?

Who will find tenants (you, your partner, real estate agent or property manager)?

Who will manage the property and collect rent?

I would go 50/50 on the first home going into closing with roles defined and then leave time re-evaluate the equity split after finding a tenant. You also need to define what your options are if one partner wants to sell off his share of the investment. Look to make the next deal more fair once you understand your roles in the partnership.

Communicate frequently throughout the development to find ways to help as an out of state investor even if it is just administrative effort.

@Zachary Penn I like HELOCs because they give me options. I can use the LOC for a home purchase or cover my living expenses. It can serve as an emergency fund if you are cash poor. If you expect your home's market value to drop due to the economy, then I would start the application process as soon as you find the right product for you. I would look for a low rate, interest only HELOC. I have only paid for the appraisal in closing costs. The annual fees are low as well.

@Brad Stafford you may need to put 25% down on each duplex across 2 conventional loans, so I do not blame you for seeking out a commercial loan. Lenders have been raising their minimum requirements and I suspect a 730 credit score may not make the cut with most lenders today. I would reach out to local real estate agents asking for recommendations on lenders that are still closing and contact all local credit unions.

@Russell Gronsky - you may need to evict the squatters with an ejectment or unlawful detainer; confirm with your lawyer.

Is your tenant’s lease still active? If so she’s still on the hook for rent payments.

Leverage your previous tenant to get the POS squatters out or to understand their situation so that you can negotiate cash for keys or at least get their full names for the eviction process. Good luck.

@Andri Grullon - you can store the funds drawn from the LOC in a high yield savings acct to cut your interest expenses by ~ 50%.

You could start by drawing what you think you’ll need to close on a home (down payment + closing costs for your target price point) and continue to draw more over the next few months based on market changes.

I have 3 HELOCs and am applying for a 4th, but I only plan on drawing funds when I’m ready to close.

@Jimmy Lin do you recommend the portfolio lenders that you had used for the previous 3 properties?

@Dr. Jordan E Smith are you looking to purchase rentals? Have you considered applying for the HELOC on your current home and then renting it out until you are ready to sell? You can draw a down payment from your HELOC for your next home (primary or investment properties).

Also, if your home is now worth $10K less, could you purchase your next primary home at a discount?

@Julie Walker - I keep my window treatments (vinyl blinds) lowered all day and I have ceiling fans running at medium speed. The current room temp is 77 degrees and it feels kind of chilly.

My tenant would have been responsible for repairing the leak based on the dollar amount of the repair specified in our lease. You may need to have walk thru inspections more frequently with this tenant. Or find a new tenant who will actually respect your home.