All Forum Posts by: Erik Manley

Hello everyone! Since we had such a great turnout from or first event, we will be hosting our next meeting on Thursday August 16th. The topic tonight will be on Creative Financing and we’ll get to network as usual. Also we’re excited to introduce our newest resource to the group, the “Master Referral List” To keep us up to date with the best local Lenders, Contractors, Landscapers, etc. (That we all use). Parking in the rear and meeting in the basement as usual. Hope to see you all there!!!

Welcome to the first Milford meetup! We invite you to join us and other fellow local BP members at our new monthly meetup we're holding at the Coldwell Banker in the Milford Green.

This event is for investors new and old, and for everyone whether you're interested in buy and hold, flipping, wholesaling, lending, etc. Feel free to spread the word and invite anyone that is interested in real estate. The first hour we'll be free to mingle and network, and we'll try to have a topic every month, so our first meeting will go over the property buying process, from looking for properties, all the way to closing. See you all there!

All following meetups will be on the 3rd Thursday of the month.

Just my .02, I'm not sure about specific laws in Chicago, but I completed a 203k for my first Duplex since trying to find good deals in my area was really competitive. All in all I had a positive experience and this is what I learned from the process.

1. ONLY go through a lender that has done many 203k loans

2. Contractor doesn't need to be 203k certified, but has to fill out contractor packet, W-9, have HIC License, and carry a minimum of $1 million liability policy and have the lender listed as the certificate holder on the policy (not $500k) which cost me an other week to correct during closing.

3. Streamline is up to $35k with no structural repairs, the full requires a consultant. My project was a full gut and we had to fix a part of the foundation, and cost about $90k and took 3.5 months to complete. I bought it for $151k, reno was 90k, and the house appraised at $300k. This gave me $60k in equity right off the bat and I practically have a new construction house, so it's also low maintenance. 

4. The loan is a major PITA, and will take 3 months to close, so plan accordingly so you don't need an extension. If you're able to deal with the headache I'm an advocate for it. Now I'll never do another one now that I'm looking for future deals, but I truly believe I never would have gotten started or would have no equity and low cashflow like many other investors in my area. 

That's just the tip of the iceberg, and it is complicated, but definatly not as impossible as everyone (thats never tried one) make it out to be. If you don't mind the bumpy ride, then I strongly suggest looking in to it and would love to answer any questions on it if you have any.

Here's a couple photos to show you what's possible, for $17k out of pocket for a $300k house, it's definitely a great way to get creative.

I have many more if you're interested. Good Luck- Erik

Welcome Travis, and good for you for deciding to take the leap! I'm in the finishing stages of my first rehab down in Stratford. The biggest advice I can give you is to not buy at market value if you're trying to buy enough properties to replace your income in 5 years. Two of my other friends bought turn key cash flowing properties with an FHA @ 3.5% down but since they have no equity in the properties, short of seller financing, they are stuck slowly trying to save up for 20-30% on their next one. My route and advice depending on your financial position is to look into 203k loans, where you pay 3.5% on the purchase and the REHAB cost. Now you have a house that cashflows and now you can take out a HELOC on that first property to buy your next in quick succession. Since you'll have your first rehab experience under your belt, taking out a HELOC and hard money loan won't feel as daunting. Then you can refinance the 2nd property after 6 months and pay off the HELOC and HML, then rinse wash repeat on the 3rd,4th,5th properties. Your numbers have gonna be pretty spot on so run them multiple times. Also there are monthly biggerpockets meetings on the 2nd Tuesday of the month in Manchester at 6pm and the last Wednesday at 7pm in Fairfield. Good luck with your investing journey!!

@Christopher Phillips

Thanks, I'll be sure to read all of these!

@Mike 

@Account Closed, I'll definitely check it out. 

Hello everyone, I'm currently set to close on my first two-family using a 203k at the end of October, and after going through the loan and legal process, it's crazy how expensive it can get to acquire a new property. Ever since reading Brandon Turner's book on investing with low and no money down I've always been interested in seller financing and I know it is going to integral if I'm going to buy more than one property every other year. I've tried to search as much as I can online but I've never found an indepth explanation of how the interest is paid, like if the percentage is calculated monthly like a regular mortgage, or on the lump sum. Plus the legal process for seller financing. If anyone knows of any great books or resources on seller financing I would appreciate it because I'm trying to learn as much as I can to get ready for my next property, as well as help my friends out that are also trying to get their next ones too. Thanks!!