All Forum Posts by: Guye Ferg

@Reed Starkey

Thanks for the tip!

@Ryland Taniguchi 

Very, VERY CREATIVE. Thanks for the great idea.

@Ryland Taniguchi

@Jay Hinrichs

That is stellar insight thank you. The take away I get is, it [100% HML finaicing] is there, but not for the noob or inexperienced.

@Account Closed

I will look further into wholesaling this one now. This property is a REO and I have a buyers aggreement with realtor, who showed me the house, not sure if either of those things make a diff. If I have her make an offer and I then assign the contract before closing...how does that work? Is she just out a commision at that point? Is the new seller obliagted to work with her? Is it even doable?

@Mike Barry

Hey Mike,

Unfortunately I can't answer your question accurately so I won't try.  But I would like to suggest you find out when eviction hearing are held in your investment county, and sit in on them.  In my area they are in the same room of the courthouse, same day, and time of the week.  You'll pick up a ton of info and insight just sitting in on one session.  They usually run through the whole docket in a couple of hours.

BTW, where I am in VA, when you do follow through with the evection process, the court only issues a "judgement", that they have to pay the fees(back rent, legal fees, etc..) and the gives you the right to evict. You still have to decide to and follow-up with the sheriff to have them vacate the premisis, the county doesn't do it automatically. I say that to say this, be ready for the tenant to pull on your heart strings yet again and try to negotiate staying in the home.

Sorry I didn't answer your question directly but I hope this helps.

Travis Boyer

Thanks for the substantive and thorough response. In all honesty, yes, at first I did think 100% meant "purchase, rehab and closing costs, appraisal, etc..." Essentially I though as long as the numbers were solid and I didn't exceed their LTV, I would be set. That being said I'm defiantly willing to put up my own capital, to get the deal to go through. My thinking was that my money would be used for those holding cost you mentioned as well as to cover the repair work while the draws clear, plus any unforeseen cost. I completely see your point as well about the HML being 100% at risk if the deal goes bad, and that makes total sense. As it stands, coming up with a sufficient down payment, monthly payment, holding cost, and reserves, seems like kind of a long shot w/only 10-15k in my market.

In your experinece with HMLs, would they frown on me bringing a partner or two to cover the costs mentioned above, or getting the contractor to take a second position mortage to do the work so their loan would be for acquisition costs only?

Thanks Again!

Hello BP!

I'm brandy new to investing and have a "potential" deal(not under contract yet). ARV 215(5-10K below market for quick sale), repairs 40K Conservative, Max offer 115K.

I don't have a lot in liquid cash less than 15K. I though I could leverage that by using a HML, but all(so far) want monthly payments for 6 month loans, and one is asking I bring 50K to closing!!

Am I just being new and naive thinking I can do a deal like this only bringing 10K MAX of my own money, or should I just keep shopping?

BTW, My plan or hope was to use my cash for reserves and to pay the contractor while I wait for the draws to clear.  I'm in NoVa if that adds any perspective 

Thanks for the feedback guys.  I appreciate the insight.  Carson, you mentioned "the people you are in contact with".  If one's focus is wholesaling would be more beneficial to be available in the evenings, to receive calls back from potential sellers and visit properties since that is when most people are getting of work, thus checking the mail and available themselves?  Conversely, if one's focus is rehabbing/flipping is it vital to be available during more traditional "business hours" to visit your projects, and work more quickly with industry professionals (contractors, lenders, etc...) 

Helllooo BP!

If you are a Wholesaler or Rehabber/Fix & Flip(er), with a full time job, and have to choose between time of day to have free, mornings/afternoons, or evenings.

Which is most important or productive to you?

I'd guess the answer is different for the wholesaler as opposed to the rehabber, but I would love to know what this community has to say.

I've been learning (in books & tapes) about real estate for a while and now I'm geting started. I'm focusing intially on Wholesaling and Fix & Flips and then plan to grow into other areas.

I currently work evenings (3-11:30PM) and am wondering if I go back to days would it make investing more diffcult.

I live in NoVa are but grew up in Maryland(PG co.) and spent alot of time in DC.  So I'm comfortable and familiar with much of the DMV.  I've been loving all the info and perspective from BP.