All Forum Posts by: Grant Anderson

Hi all thank you for reading my post.

I am currently looking into buying more properties in Indianapolis. Ia m interested in buying properties with my partner through an LLC. Currently we own four properties in California that are owned personally. We are looking to expand out portfolio and continue our purchasing model. What we do is purchase a property with cash, add value by fixing it up, rent it our, then refinance at the new higher market value. Typically we like to get loan between 70 and 75% of the new appraised value. We are looking for lenders that would be able to do this type of loan for us. Some of the loan may be under $50,000. Does anyone have any lender recommendations?

 Michele - That is what I have been doing in the past. Evaluating everything but not being so concerned about credit score. Although, I have been building my portfolio of rentals, currently 9, I am getting another and next year my goal will be 4 more properties. As I grow, I have heard that you need to create minimum qualifications so the potential tenants know what to expect and therefore cannot sue you for discrimination. I am in California.

Amanda - First you need to figure out what the property is worth. Then figure out what will it rent for. Ask your friend what they are paying per month to the mortgage company, does it cover property taxes and insurance too, or only principal and interest. If the house is close to the $130,000 value you have a couple options to help them.

First you can help them "sell" though a lease option. A Lease Option means you find a buyer willing to buy the house at a future date for a specified price which is the option. They lease the house out and pay "rent" monthly. Normally there is an option fee the buyer pays upfront which you could split with your friend or give them the $3,000 they wanted.

Second, you could purchase the house subject-too and rent the house out yourself. You would only want to do this if you can make a profit between the mortgage, utilities, and allowances.

Hope this helps.  

Hello all, I have a few rental properties that I manage myself. I have been hearing from some people that I should set up some criteria to base my decisions on. The criteria I have come up with is income must be three times rent, satisfactory rental history for past two years, satisfactory credit 640 or higher and no delinquencies for past 6 months, No past evictions or owe money to past landlords. I have been trying this with a property that I currently have available, but most people are under the 640 credit rating. Is that too high? Are there any other criteria I should look at?

Thanks for all your help.  

@Greg F.

I plan on continuing what I am doing in Sacramento, buy, rehab, and then rent anything from single family residences to multi units, probably not going higher than 20 units.

 Thanks Lori - How did you choose those markets? Where can I get preliminary information to start researching these or other markets?

Hi Everyone,

Currently I am looking for buy, fix, and hold opportunities in Sacramento, where I live. Since prices are rising it is becoming harder to find deals that make sense without going into really bad areas. Therefore to avoid this, I am thinking about going into a different market in another state. I have a couple cities in mind but want to know the best way to research a city from a distance to find out if it's a good market for my strategy. Also, if you have any recommendations of cities that would be welcome too.

Thanks for you time.

Grant Anderson

Welcome. Bay Area Wealth Builders runs a meeting similar to Nor Cal REIA and Capital City Wealth Builders. Sometimes you will see the same investors at all three.

Is the property in California? Do you personally own it? If so, just completed one and just purchased two more that I am going to do the same thing with. My mortgage broker said it is called delayed financing. If you PM me I can provide you with his information. Depending on your particular situation we were able to get up to 80% of the appraised value of the home up to 100% of the costs we put in. Although, it does need to be all cash. You can send me a message and I will get you my loan brokers information. He works in California.

The contract I use for all my purchases has many different options on it, depending on the box I check, there is cash, bank financing, seller financing, or subject-to. If you currently have a contract that you are using just add subject-to. Although you will need a couple other items from them. One a power of attorney over that loan and a non-disclosure agreement that they will not tell the bank they have sold it.