All Forum Posts by: Hoa Nguyen

I recently discussed with a fellow investor who claims he is getting his hard money loans secured for only 10% down. Everywhere I have looked has always been 20% minimum. I didn't dive too much into who he uses as the conversation was brief. Has anyone else done a deal with hard money with only 10% down? If so do you mind sharing who you used? That would be a game changer for future deals for me.

(spare me the "hard money is dangerous" advice")

3 Votes

Quote from @Jacob Sherman:

whats your exit strategy after the renovation ?

This would be a flip, but if push came to shove, refinance and attempt to list on market during peak sale season in my area. I can also hold and rent, but not a crazy amount of cashflow

1 Vote

Hey! Belleville native here! I am an investor-friendly agent and a local Belleville investor myself. Would love to connect!

0 Votes

Quote from @Albert Bui:

Quote from @Hoa Nguyen:

Hey, everyone looking for some advice in regards to financing a potential flip.

I have about 100k in equity in my primary residence and have heard some success stories in using HELOCs for flips. In my market, you can find a home that needs 20k in repairs for 30k-50k.

My question is, is it a good idea to capitalize on the HELOC opportunity if I find a solid deal? Or should I rather seek a hard money lender?

These are the only two options I am looking at. Don't have dp for a conventional.

Hi Hoa,

- Hard money is fast efficient, expensive, it has high rates and points and shorter term 6-12 months or less typically with extensions available

- HELOC typically has no points but prime + 2-3% margin right now is almost the same rate as hard money and closing costs are a lot less than hard money and you can rinse and repeat and reuse it after paying it off so yeah overall its better than HML (hard money lending)

Thats just the beginning of your research, the reality is in real life you might need both sources, make sure to have both ready and start with the best execution or option first and always be ready to use the others if the need arises.

rehabbing is messy AF especially on older housing Illinois housing stock from 1895-1940's. Every wall you open is a new journey in life... =P

@Matthew Kwan

@Carlos Valencia

Realizing the possibility that I may have to use both is VERY real. Appreciate the insight!

0 Votes

@Kerry Baird what about heloc for downpayment on a higher budget (higher reward) project funded by HM?

2 Votes

Hey, everyone looking for some advice in regards to financing a potential flip.

I have about 100k in equity in my primary residence and have heard some success stories in using HELOCs for flips. In my market, you can find a home that needs 20k in repairs for 30k-50k.

My question is, is it a good idea to capitalize on the HELOC opportunity if I find a solid deal? Or should I rather seek a hard money lender?

These are the only two options I am looking at. Don't have dp for a conventional.

3 Votes

Quote from @Chris Seveney:

@Hoa Nguyen

It will go to heirs, for you - you continue to make payments to borrower even if deceased until probate is filed or you get official notice

One thing I see lately is contract for deeds people have not recorded and if lender disappears and it’s not recorded it can lead to problems

Love that you mentioned that, I always record any deals with the county!

0 Votes

Hey everyone! Have a hypothetical question that came to mind. I am currently negotiating an owner-financing deal with a seller who is in their early 70s. My question is what happens if this said seller passes away? The mortgage agreement would be filed officially with the county. Does the inheritor inherit the agreement?

0 Votes

Quote from @James Wise:

Quote from @Hoa Nguyen:

Hey everyone! Have a situation that I want some input on. What financing options do you think is best for this situation.

Lady is selling 6 individual condominiums in the same complex and is willing to do a bundle deal. Each unit is for sale at around 50k. All units have tenants and each unit is in great turnkey condition. She bought the homes with funds via HELOC. I really want these units! But the problem is financing. I love owner financing and CFDs, but unfortunately she isnt willing to. What other options do I have that will give me a lower to no downpayment if any?

You'll need at least 25% down to do this deal.

Actually got a local bank to finance me at a 10% since all properties are undervalued and positively cash flowing already! When in doubt, call local lenders. Lesson learned!

0 Votes

Hey everyone! In my endless journey to find more rental properties, I have stumbled across a deal that has an inground pool. None of my current rentals have a pool, so I am not too familiar with the process. What tips and advice do you have?

0 Votes

All Forum Posts by: Hoa Nguyen

Hoa Nguyen has started 34 posts and replied 79 times.

Post: Hard Money for 10% down

Post: HELOC vs Hard Money for a flip

Post: Belleville Illinois Investing

Post: HELOC vs Hard Money for a flip

Post: HELOC vs Hard Money for a flip

Post: HELOC vs Hard Money for a flip

Post: What happens if Seller dies before Owner financing term ends

Post: What happens if Seller dies before Owner financing term ends

Post: Help, Need Financing Solutions

Post: Things to consider when renting a property with a pool