All Forum Posts by: Glenn D.

Grand Investors

HELOC's - What are they - How to get them - How to use them to expand your territory!!!

• When:   Dec. 1st at 6:00 PM
• Where: 1003 James Avenue SE, East Grand Forks, MN  56721

Come and find out: 

1. How we financed 2 more deals using HELOC's
2. Get an inside track in our group for foreclosures!!

Who is in your local area that can help you find and do your next deal!

Now Is NOT the time to go into hibernation! As the weather starts to finally turn colder, many people think the real estate market is cooling down too. It is not for those still willing to work. The perfect reason is that the holidays are here which means more people pull back and shift into slow. This is when the competition thins which means more deals for you!!! People still need to sell, but don’t think they can because the “Market slows down”! Now is the time to send out your marketing, Facebook and Craigslist post!

For this MeetUp we have a couple of guest speakers coming so bring your pens, pads and business cards because this one is going to be good! Many of you know how hard it has been to find deal funding, well I found some in a surprising location – the BANK! Alerus to be specific. In the form of a HELOC. Kari and Lindsey are coming to talk to the group about their awesome products and how we have used them for 2 deals in the last month and more to come.

It is getting cold BUT the deals are still HOT!!!! Our lives, I am sure like many of yours, have been crazy but we have to keep going, because life and all of the real estate deals are not waiting around for us.

SO - let's get out there and GO GET THEM!!

As always the pot luck starts at 6:00PM – with the REI meeting will starting at 7:00PM. After we fill our tummies and have a good time socializing the REI meeting will start at 7:00PM.

I look forward to seeing you all there.

Glenn Out!

@Zach Crawford

Welcome to the BP family.  I wish you luck.  My advice would be to connect with people like @Kim Younkin and have them show you the ropes, get your financial ducks in a row and GO!!  The biggest block that I see is people wanting to do something and never taking the proper steps.

Educate and then execute!  I wish you luck.

@Bab Adetiba

Why do you think you can't get a HELOC. In my example we got the HELOC on the property we purchased not our own residence. And the bank did the HELOC knowing it was an investment property.

Let me know what seems to be your road block.  =0)

@Jamie Wilson

Be not discouraged!!!  Wholesaling is a fantastic option.  Like @Brett Snodgrass stated it takes some work, BUT is a great way to break into the industry with little to nothing out of pocket.  So many of have either time or money and usually never at the same time as the saying goes.  The 1st biggest thing is to DO SOMETHING!!

1. I encourage you to connect with your local real estate investors (REI) groups and find out who wants deals and what kind of deals.
2. See if you can find a local mentor and if not use US on BP as your long distance mentors.
3. Do some driving for dollars, scoure FB, and CL, Zillow and any other source of finding properties for sale
4. Get them under contract and sell the deal to someone you met in step 1 or on BP.
5. REPEAT!!

This has the potential of building you up a nice wade of cash to then start purchasing your own properties.

I wish you well.

@Bab Adetiba

There are tons of options for financing. Hard or Private Money Lenders are available etc. BUT I would say that you can probably do better. Here is one example that we just completed. We purchased with savings, rehabbed it, rented/sold it and then used a bank to get a HELOC so that we got all of our money back out of it PLUS.

Here are some of the details. We found a property that needed a lot of interior cosmetic rehab and bought it for $10,000 from our savings.  We went to Lowe's and got a line of credit from them and used their 0% finance deals to buy almost all of the materials and did the work ourselves.  

All the while we advertised it through FB and CL- we had not gone pro yet and didn't understand BP at that point and so did not advertise it on BP.  Our plan was to have multiple exit strategies.  

1. We advertised it first as a Wholesale.  If we found a buyer before we actually purchased it who would pay us what we wanted we were going to sell it wholesale.
2. Once the purchase went through we advertised it as a rehabber flip and started the demo.
3. During different stages we added our desired profit and advertised it as a fixer upper.
4. During that time we found a buyer through FB who wanted to purchase it once we completed it.

We contracted it to them on a Lease option Purchase which means at some future date they can exercise there option to purchase but until then they are strictly renting it.

So all that being said, we bought it at $10,000 put in about $20 in rehab (personal loans for some of this) and sold/optioned it at $67,500. We then used our local bank to get a HELOC for $56,000.

Just wanted to illustrate a possibility for you.  I hope you do well.

@Mike Wolsky

That is awesome. 20 buy and holds is great.  So I have a couple questions: 

1. Who did you use for your HELOC's? I found Alerus and they have been fantastic but of course I would like to expand my portfolio of available cash.

2. Additionally, I have a MeetUp group that is happening in East Grand Forks on Dec. 1st.  The young ladies from the bank will be coming to speak to the group and I think it would be great to hear from another investor who has done so many deals using this approach.  Would you like to come to our meeting?  Here is the meeting link. https://www.meetup.com/Grand-Forks-Real-Estate-Inv...

@Michael Schmalzer

I agree.  We have connected with 1 lender here in the local area and they have been great.  But of course I would like to expand my portfolio of available cash.  Do you do any lending this far North or are you just in the 7 county metro?

@Madeline Burke - very small world in deed.  I have not run into Sarnen Steinbarth yet, but would love a warm introduction.  We have only lived here for about 2 years now and have started investing here in the frozen North - lol.  We currently have 2 rentals and are looking to pick up more which means I need screening.  

I will check out your site.  Can you tell me a little about why I would choose you over SmartMove?

Glenn

Hello @Andrea Collatz thanks for your reply, but I am looking for a more public non biased opinion.  But I will connect with you if I have any questions for you - thanks.

BP Family,

I was recently re-minded of the HELOC and have found success with 1 lender in North Dakota which is working out fantastic. Has anyone found other HELOC or similar sources for Upper Minnesota and or North Dakota. We are in Grand Forks ND and East Grand Forks MN.