All Forum Posts by: Ian R.

@Jean Norton

My question would be regarding alternative strategies for paying for a property that was won through auction. The properties I'm interested in would probably go around the $100K-$120K range. I don't currently have that much liquid capital lying around so I approached a hard money lender to explore the feasibility of using an HML to close the deal and then refinance into a conventional loan after repairs were made (sort of a BRRRR approach). I was a little surprised to learn that the lender hadn't dealt with Auction.com, or any other auctions before, and was unfamiliar with the process and whether they could do a loan.

Has anyone else had success with using hard money to buy an auction.com property?  And if so, could you PM me with the name of the lender you used?  Thanks.

@Betty Cruz

No problem!  And congrats on your first deal!

Betty Cruz , A conforming loan is any loan that "conforms" to Fannie Mae or Freddie Mac standards. These are your standard from your typical bank. Portfolio loans such as those at credit unions that lend their own funds don't have to be written to Fannie Mae or Freddie Mac standards.

@Bryan Noth, 

@Tim Macy is a local SA realtor that specializes in working with investors.  You can find several recommendations for him here on BP.

Welcome and Best of Luck!

Another important tip on VA loans is that if you are a disabled veteran (and receiving VA disability compensation) you may be exempt from paying the VA Loan funding fee which could save you thousands of dollars on a home purchase. Also, if you have a disability rating from the VA, be sure to check with your county tax assessor because you may be exempt from property taxes. I'm a disabled veteran and I pay no property taxes (on my primary residence that is). If you are going to use the VA loan to "househack" your first investment, this could be another way to dramatically increase your cash flow.

My understanding is that you can withdraw any contributions you made to the account without any fees or penalties since you've already paid taxes on those as personal income. The penalties and fees kick in when you withdraw any earnings the fund has made based on your contributions. The trick is figuring out where that line is. You'd be best off speaking to your financial planner or whoever manages your fund. Good luck!

@April Rodgers, 

@Brad Larsen is dead on.  San Antonio is quirky in the sense that you can't really target a specific zip code as those can cover a vast amount of area and neighborhoods here can change dramatically within a few blocks.  My advice would be to speak to a local agent that knows investment properties and can help you find a property that will suit your needs as both a primary residence and long term flip.  @Tim Macy is a local agent that has helped other folks here do exactly what you're trying to do.  You may want to reach out to him.

Best of luck and welcome to SA!

I spoke to Security Service FCU last week. They're offering 4.25%, terms of either 10 or 15 years, 75% LTV. They also cover up to $5000 of your closing costs.

Shane Reese , Tim Macy is an excellent local realtor that specializes in working with investors. You can reach him here on BP or if you'd like his direct contact info, feel free to PM me.

@Daniel Roman, I live in Texas now but I'm originally from Broward County (Pembroke Pines area) and still visit family there. The market in Broward (and pretty much most of South Florida) is inflated and expensive. I believe it will be very difficult for you to find properties (SFR or MF) that cash flow at retail price (MLS properties). Your best bet, if you want to stay in that market, will be to seek out off-market deals and distressed properties that need rehab.