All Forum Posts by: Edward Beard

Hello all, I am a buy and hold investor but I came across a property that may have huge rehab profits. I've always wanted to rehab, but never had the balls to actually go through with it, I would just wholesale it to someone else. Property Details: 4-plex, (2) 2br/1bth units & (2) 1br/1bth units OR if converted 6br/4th 2,850 square feet. Currently 75% rented bringing in 1,775 in rent (there is room to increase rents) Asking Price: 400k There are converted comps at 676k & 755k After speaking with the owner, he stated that he was going to attempt to convert it and gathered estimates that totaled up to 100k in repairs. He's also willing to owner finance 200k. Here are my questions: 1) Does it make since to took keep it as a 4-plex and hold it long term? To me, the price seems too high and the value is in converting the property. However, values are increasing in this neighborhood and given more time, property values could increase more. 2.) How would lending work with this property? I don't have all the cash necessary since this is a higher end deal. The owner is willing to carry 200k, if I were to reach out to a HML, how would that structure work with the owner finance in place? Thanks for all the assistance in advance.

Thanks for your response. However, I meant if I was the party receiving the private loan. Does that loan amount need to be shown as income on my taxes? I know it's a quick call to my CPA but I'd figure I'd ask here first. 

Does a private loan (backed by a property) count as income on my Taxes? How should it be represented? 

Thanks in advance.  

Hello All,

Thanks in advance for all the advice. Here is my current situation: I have a 40k LOC available that I am not using. Currently, Im at a point where I would like to use this money to work for me. If you had 40k to use, how would you use it best for for you.

So I did get around to calling most of the Companies suggested, here are the results:

- Peak, will not finance the property as it is outside of their location parameters. They do finance in Jackson, MS but they use rentfaxpro.com and the property address falls outside of the locations they lend in Jackson.

- B2R, The dont finance properties under 50k. While I think my property will appraise at 50k, I dont want to lose money on an appraisal when Im not 100% sure. Its weird because their website says they go down to 25k. Maybe its 50% LTV

- Lima, was the most promising but they only offer 50% LTV for a cash out refi. Im looking for slightly higher LTV than that.

Still on the hunt.  

@Tim White I will let you know. If you lender falls through, I know another guy that could help you out. He said he could probably stretch you Louisiana or Alabama. Send me a DM, I will  provide his info.

@Justin White I do have 2 others in Jackson. They are currently financed with favorable terms. 

@Darren Eady thank you so much. I will give them a shot as well. 

Awesome... I will check them out. Your help is much appreciated, thanks for your time  

Back in May 2015, I purchased a property all cash, rehabbed it, and rented it out. I am now looking to pull my cash out of the property to rinse and repeat. There are a few gotchas as to why the refinance has been a headache:

1.) The property appraises for less than 65k, which means conventional loans are out of the question. Ive also checked with lenders such as Visio lending, they have a minimum of 50k loan as well. 

2.) The property is owned by my LLC, I dont have a problem quit claiming it back into my name for the sake of refinancing the property.

3.) The property is located in Jackson, MS and I live in North Carolina. Most people are going to say I should check with local credit unions and banks. I have chatted with SEVERAL local banks, they are not willing to lend to me because I dont live locally.  

Any other ideas? I really want to get this home financed into a 10-15 year loan. 

I seem to have a very motivated lead that really wants to get rid of her property. However, there are a few nuances that I have to overcome so that I can properly convey the right message. She mention if I were to just "get rid of her mortgage", I can just take the home.She also stated that she was about ready to just let it go into foreclosure. Immediately, I thought this would be an excellent candidate for a subject-to financing.

Here is what I was able to get out of her. She is currently renting the property out for $1100 (tenant just renewed in March), her PITI is $760. According to her, the balance of the mortgage is ~$181,000. Comps indicate that the property is worth $130,000

I know this is also a candidate for a short sale, but I have no clue where to get started with that. Thoughts?