All Forum Posts by: Hunter Reed

Cash out refi should allow you to recapture your equity. Use any money that is recaptured to invest in another property. Look into a 1031 exchange to evade paying capital gains. Hope this helps. Good luck! 

Estimating Rehab Costs by J Scott is a great read!

Kiersten, have you thought about multi-family investing? Understand the benefits in a FHA loan. Hope this helps. Good luck!

Charles, read Multi-Family Millionaire by Brandon Turner. You'll be instantly motived to invest ASAP! Regarding your 100% private money lender is a great opportunity to get started investing. Look at it from this perspective, a bank typically loans a homebuyer 80% of the purchase price and the other 20% comes out of your pocket. 20% + 80% = 100%. In your case you need to factor in the entire deal structure using a private lender at 100%. Example: 4 unit costs 500k with closing costs and a light rehab (All in cost) your sitting at 575k - 600k. If your private lender is funding a cap amount at 500k then all you have to do is submit an offer at 425k - 400k. The beauty of a private lender means they have cash. An all cash offer means a very short closing time in order to claim the property title. (Attractive offer) If you follow through with the rehab then you could assume a 675k - 700k ARV. Refinance the property at 80% LTV, assuming the property appraises at 675k. You now have a new loan at 540k. Essentially you're putting 40k in your pocket with a much lower interest rate. These are theoretical numbers so don't assume this will work with any property. Crunch the numbers and find a great deal. My mentor preaches OPM. To become wealthy you have to use other peoples money which you are in this case! It sounds like your agent is jealous of a private lender in your pocket. Hope this helps. Good luck!

Anup, I would suggest looking into the multi-family sector. The more units you obtain the more cash flow will be generated. If you have not invested before look into a FHA loan or a 203k loan. The difference between the FHA and 203k loan requires you to establish residency for one year. The 203k loan allows to you flip a property with a low interest rate. There is a seasoning period on a FHA loan but once you live in the property for one year you can refinance. Make sure the lender has a 70% - 80% LTV. This is how I am getting started. Hope this helps. Good luck!

Fran, hiring or possibly partnering with a fix-and-flipper can either hurt your pockets or fill them up. If I were in your position, I would first locate and purchase a property that has built in equity assuming profitable ARV. Once you have found the property start by quoting contractors or flippers. Be aware of zoning laws and building permits for these variables could cost your investment unnecessary time and resources. Before you decide on a contractor or flipper, create a contract that states when and how the rehab will be done. In your contract include clauses that state if the work is done by this specific date then... Or if the work is completed before the deadline then there will be an extra incentive. If the work is not completed by this date then there will be no pay... (Worst case scenario it will be decided by the judaical system) If you are paying cash for the investment great but if you are going to be taking out a loan then I would advise that you look into short term loans. Most flippers utilize a short term loan. Short term loans include higher interest payment but much lower principle compared to a long term loan. Hope this helps. Good luck!

Rob, from the knowledge I've required over the years median income salary is a great indictor for sustainable cash flow. Hope this helps. Good luck!

Joe, it is never to late to make a change in your physical lifestyle. Personally from my experience exercising on a weekly basis allows me to feel energized and motivated! In order to sustain longevity and great health requires exercise and a healthy diet. Keep up the good work!

Rigo, I believe if you have the right script in place cold calling can be an excellent way to generate leads. More importantly deciding to pay a 3rd party service to generate leads for you, will allow you to save time. Opportunity costs are inevitable in the real estate sector. Hope this helps. Good luck!

Ben, why do you have so many liens and helocs? Look to pay the helocs off first.