All Forum Posts by: Account Closed

Hi @Kemonte Bateman - every situation is different! Pulling a HELOC depends on what you will be using the $$ for.

What kind of property investments are you looking to make?

Awesome profit and nice work living there for 2+ years to get the $250k deduction!

Look for a second lender here or ask if that originator has someone more senior that can help you. Definitely a few moving pieces and he/she is probably newer.

Finance the house with an FHA loan in your personal name with a 3.5% down-payment.

You have to live in it for one year. After closing, I would quit claim the title from your personal name to an LLC owned by yourself for liability purposes.

You can't get an FHA loan if you try to buy in an LLC.

Plan A seems do-able. Start with that.

In the hard money space, I would go with whatever lender has a better reputation. It sounds like lender B due to their ability to close.

"I was thinking of holding the hard money loan for as long as I can until the ARV comes out to what I need it to be, but this sounds risky."

Don't do that, it is risky. What happens if home prices drop and rates go up you are still in a hard money loan.

@Maryam Mostafa I would be happy to help answer any questions. I am a mortgage lender that focuses on working with first time investors!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $705,000
Cash invested: $200,000

We purchased a 2-family property on the market back in June '21. We did a full gut renovation and now have it leased out to college students.

What made you interested in investing in this type of deal?

There is a strong demand for student housing!

How did you find this deal and how did you negotiate it?

On the market! We bid higher than everyone else!

How did you finance this deal?

Conventional Loan!

How did you add value to the deal?

Full gut renovation of both units.

What was the outcome?

Strong stabilized rents to students.

Lessons learned? Challenges?

This was our first full renovation. It was more expensive than we originally thought!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

AFC Mortgage Group!

In our market, we rent to students for 9 months and beach rentals for 3 months!

I think we can make more $$ from students on a monthly basis since we are not charging them for 3 months they do not live there.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $180,000

First single-family purchase back in March 2020. I turned it into a student rental.

Light cosmetic work to the house since I purchased it. A interior renovation will be needed in the next 3-5 years.

What made you interested in investing in this type of deal?

Great market for student rentals. We run a 9 month lease and then 3 month beach rental.

How did you find this deal and how did you negotiate it?

It was right before COVID. I went under contract in late Feb 2020, it was sitting on the market.

I used a buyer's agent to represent me.

How did you finance this deal?

Conventional loan, 20% down.

How did you add value to the deal?

New floors, created another bedroom, created open floor plan in kitchen/living room, new paint job (interior and exterior).

What was the outcome?

Fully leased student rental for the last 3 years and looks like that will be the case for the next few years as well!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My lending company, AFC Mortgage Group!