All Forum Posts by: James Allen

Thanks Henry!

Hi, 

So I'm finally ready to purchase my first home with my wife. We've started submitting offers and such and are trying to find a good deal in the Los Angeles area. 

So here's the situation:

My wife needs to be as close to pasadena as possible for her to feel comfortable cause her family lives there and she's a stay at home mom with 2 kids. Given that we have gotten pre approved for just over $400k, This limits our options to basically Duarte, Azusa, Covina, Baldwin Park, and Glendora for the most part. My thoughts are to get a cheap fixer upper house with 203k FHA loan so we don't throw away rent to an apartment, remodel the house, and build up some equity. Then I have room to save with the cheap mortgage payments for my first real true investment property that I won't live in. My only concern is that I wanna know if any of these neighborhoods should be of concern for an investor before pulling the trigger on one? Or if any seem like great places to invest in at the moment?

Thanks,

James

What is a good response if a motivated seller asks me for proof of funds when in reality I'm trying to wholesale the deal?

@Jerry Padilla - Thanks Jerry, I'm particularly referring to paying the motivated seller all cash upfront and getting $60,000 of the total purchase amount from a bank instead of a hard money lender to get better rates as opposed to pulling out cash from a refi. From what I'm understanding so far, it sounds like you can't really pull it out but that the seller will cash out the money from the bank during closing right @Darren Budahn? and then we just pay the bank monthly until we Fix it, flip it and then pay off that loan all together. 

@Darren Budahn - Thanks, yea that's what I was wondering. 

@Mark Limke - "I think you're saying you want to borrow money from a lender to pay the seller all his proceeds up front, rather than through seller financing. Right?" 

- Yes that's correct. For example if I want to purchase a $140,000 property from a motivated seller for lets say $100,000 and I promise to pay him all cash. I can pay him $40,000 of my brothers money but still need to pay the other $60,000 straight up. One option is I can do a hard money lender for the rest of the 60,000 and rehab costs. However, what I want to find are lower interest rate alternatives so that I can make more profit off of the flip. So knowing that conventional loans can go for roughly between 3-5% interest rates instead of typical 8-15% for hard money lenders. I wanted to know if it's possible to pull that $60,000 cash out from the loan similar to pulling out cash from a line of credit to pay them the total up front and get that nice discount? 

Hey Guys,

This may be an obvious question but I'm struggling to find the answer. My brother and I may be potentially going in on a future deal together (Buy, Fix and Flip). He has some cash (around $40,000) and I will generate leads and target a potential great deal to invest in. 

My Question is this: If we were to purchase a house and we are trying to pay all cash in order to get the lowest price possible from the seller. Is a Conventional loan from a bank or any other bank loan impossible to cash out or would we have to go through the route of a hard or soft money lender/OPM for the rest of the money? Trying to see if we could go for lower rates overall.

Also, my second question is if it is possible, is it true that the banks not allow you to purchase the property anyways if its in need of repair or if the offer we make is way below the fair market value?

@Adrien C. - yea, that's the only thing I can think of. Did you find that was enough to get the RE agent on board? 

Me and my wife are about to begin our first wholesaling campaign after lots of study and courses. We want to find a investor friendly RE Agent so that we can get access to the MLS and get comps on potential properties and such. My question is what are some incentives I can offer the RE agent to make it a real win win?

Hey man,

Thanks again for the introduction to the group. Learned a lot and made some great connections. We'll be in touch soon I'm sure!

- James