All Forum Posts by: Ethan G Stine

Hi Leah, might be a little late but I am local to Victorville I can recommend my GC. I just had a pipe burst in my rental in Spring Valley Lake and he handled it like a champ. Feel free to message me and I will give you his contact info if you still need! 

Hey Ian, I can put you in contact with my GC. He is very reasonable and reliable. Send me a message and Ill be happy to give you his info!

 Appreciate the advice!

Got it, that makes sense. Would it make sense to use the second, if I was able to secure it, as a hard money loan to do more fix n' flips and set a aside reserves to cover the debt service on the second. So, while it wont be cash flowing any more with the second, I would be able to have the tenants paying down the principal, and use the money to put in another deal, all stemming from essentially nothing with the seller financing.

*Disclaimer: I know this is pretty erroneous, I am just trying to think of unconvential ways I can make deals while using OPM.*

I appreciate the advice!

Jonathan,

First off, congratulation on early financial success! It is definitely exciting being in such a comfortable financial situation early on in life. I am sure it will open many exciting doors in your investing world.

While I am not sure I can offer substantial advice, I can relate as I feel we are in a very similar situation. Early 20's, attending school in Los Angeles, early in my investing 'career', self-employed (online businesses), cash, no W-2 job, and lastly, we both are not quite sure which investment path to take. 

One piece of advice I could recommend from previous experience is trying to find partners that are interested in investing in real estate with W-2 jobs but maybe do not have the cash to do so. I know this is one way around the rare, 'cash in hand but can't qualify problem'!

If you ever need someone to bounce ideas off of I am always looking for like minded individuals to talk investing/real estate with!

Best of luck,

Ethan

Hey BP, 

So I recently opened escrow on a property that I was able to secure seller financing on. The financing and numbers are structured like this: 

ARV: 250k Purchase Price: 210k Estimated Repairs: 10k-15k. Avg. Rent: $1400 Seller wants $1000/mo for 5 years, ballon payment at the end of 5 years. 5% interest.

So with that being said, the numbers are not out of this world good, but it was something I was able to get owner financed so I jumped at it. My question(s) is, would I be able to BRRR this property? I would like to keep the property as a rental as it is in a very desirable neighborhood in my area. Would I be able to fix this property up, rent it out, then refinance it out at 75% LTV to get my money out and keep the seller financed loan as well as the refinance loan, or is that not possible? In my naive real estate head it seems very risky, even if it is possible. So then I would have $187,500 loan from the bank, and my loan with the seller at $1000/mo due at the end of 5 years, which when I run the loan amortization calculator I will have $150,000 due at the end of those 5 years.

If this is not possible, I plan to hold on the the seller financed loan for the duration of the 5 years since I will be able to cash flow during that time. Although, I am open to all advice and suggestions!

I know this is a stretch and the more I think about it, does not seem possible, but thought I would as the oh so helpful BP community. Thank you ahead of time!

Ethan

@Jay Hinrichs, thank you for the suggestion, it looks like this site will be very helpful!

I appreciate that @Ozzy Smith, I will definitely take a look at Dayton!

I appreciate the advice, @Account Closed. I am pretty frugal with my money and currently have a property in my area (California) that isn't producing the returns I would like in terms of cashflow. The appreciation is great but that could all go away tomorrow. 

Awesome tips, @Account Closed. I will definitely take all these to heart when purchasing my first OOS property.