All Forum Posts by: Timothy Gillette

The 28th would be great for me. Most of the local REI clubs hold meetings on Tues or Thurs and have a great turnout. Once the date is set I'll try to pass the info along to some local REI clubs.

Another idea is to contact Pine Financial once you pick a date. They're a popular HML based in Denver but lend in Minnesota. They have a large contact list to help get the word out to investors in the Twin Cities area. They do a lot of free classes for investors.

I'm looking for General Contractors with experience working with investors for rehab/flips in the Minneapolis/St. Paul Minnesota areas.

I'm planning my first flip project in July and am trying to put together a list of GCs with flipping experience. I have a couple so far but thought I'd ask the Bigger Pockets community for some referrals.

Thanks!

Welcome Matt Knutson

I'm in Saint Paul, MN and am also beginning my Real Estate Investing journey.

Have you attended any local RE meetings? Pine Financial has some great weekly "Happy Hours" meetings plus there's MnREIA and TCREI that get together ofter. Check out www.meetup.com if you're interested in finding meetings.

I'd love to get on your buyers list. Shoot me a message on here when you start putting your list together.

Good luck with your Wholesaling!

Welcome!
I'm also in the Twin Cities. Have you had the opportunity to work with any investors as an agent?

Yes, thank you for the math correction!

I'm planning to begin my serious search this week. I'll post what I find.

I figured 8 months of holding costs in the above example because I can't start the refi process until 6 months after purchasing the property and that process can take 30-45 days from what I was told.

I'm a new investor and have a goal to purchase 2 SFH in 2013 to hold as rentals.

My strategy is to use Hard Money for the purchase and rehab. Then refinance after a 6 month seasoning period.

My financial situation:

- Married - Together we make a little over $100,000 a year.
- We have about $15,000 in savings right now.
- Our DTI is currently about 16% comprising of just our home mortgage and her student loans. No credit card debt or car loans
- My credit score is over 800 and hers is around 720

The HML I've speaking with will finance 100% of the purchase and repair costs up to 70% of ARV.
They charge a $685 loan origination fee plus 4 points. Loan term is 9 months @ 15% making interest payments only. All fees can be rolled into the loan.

I spoke with a traditional lender and they said they would Refinance the loan after a 6 month seasoning period up to 80% of ARV as long as there was no cash-out.

With this strategy I feel like it's possible to purchase a property with zero money out of my pocket and possibly even get the refi with no money out of my pocket.

These are numbers completely pulled out of no where for the example below:

$50,000 Purchase
$20,000 Repairs
------------
$70,000 Total

$70,000+685 = $70,685+4% = $73,512.40 (Total Hard Money Loan)

ARV would need to be $105,000 in this situation.

$105,000 x 70% = $73,500

I would need to come to the table with $12.40

8 Months of holding costs would come out of pocket. (or until a tenant is found)

$73,500 x 15% = $11,025/12 = $918.75 month + Taxes/Insurance costs.

After 6 months I start the refi process.

$105,000 x 80% = $84,000 ->That's enough to cover the HML loan and the refi fees.

In the end I would basically only have the holding costs invested out of pocket and I would have a property with 20-25% Equity already in it.

Is this a solid strategy? Is this high risk?

Again these are completely made up numbers but they follow what I see in my market.

Jerry Puckett Thanks! I'm sure I'll be asking a lot of questions as my investing moves along.

Dev Horn Thank you! Hearing this helps me feel like I'm on the correct path at least.

Bryan K. So far I have a handful of ideas for finding properties.

1. I have a close friend that is an RE Agent and owns two duplexes who said he'd help me out.

2. I teach Brazilian Jiu Jitsu and gain a lot of contacts through my students and other people in the martial arts scene. One of those contacts is an REO Agent in the Brooklyn Park/Maple Grove area.

3. I'm planning to get involved in the MnREIA local real estate club run by Mike Jacka. I continue to see his name popping up when I'm doing searches for local investing and house flipping.

4. I've also been trying to find a good local wholesaler. I'm on a couple of email lists but rarely get updates and none of the properties I've seen so far have what I'm looking for. My guess is all of the really good ones are sold to the wholesaler's go-to investors and what's left over is what's sent out on the email list.

I'm open to any other strategies or ideas. I haven't looked into direct mail or bandit signs at all yet.

Thanks Brandon! Just got those set up. BTW I liked your Webinar on Analyzing a rental property. Pretty entertaining actually.

Keep up the good work!