All Forum Posts by: Jay Holder

Hello, I would love to JV with someone on wholesaling whether it be virtual wholesaling or local. I am in the Memphis, TN area so can provide boots on the ground and local communications. I am wanting to gain hands on knowledge in wholesaling from someone who has been doing this and making deals, as I want to use this as a catalyst to move up my REI. I am a hard and dedicated worker and know that I can help and learn from anyone willing to take a shot with me.

If you would be interested in doing this please message me and lets get to work!

I am working with a lender on a property and they seem to be willing to work with me.  The one thing I need help with is understanding their term sheet the way it is written.  Based on the below, it looks like on this 43K plus 50K rehab for 93K and Interest of 4.59% that I am going to be responsible for 471.22 per month and the Closing Cost/Down payment of $4,710.  

They also have 3pts listed on there so I am confused on what that can mean additional to the monthly payment.  With this purchase if I never refinanced or sold then I would end up paying 169K by the end of the 30 years.  

If I took this deal and then rehabbed the property and then Sold at the conservative ARV of 140K, then would be able to pay the loan back at the 93K and make 47K before closing and commission, with a conservative estimate I could clear a 30K profit on this house if sold. The other option would be to cash out refinance the property and pay the loan off early and then rent out the property for cash flow. Then I would have money for the next property and could use this lender again.

Could anyone give me any insight on how this looks and if plan train of thought makes sense?

Loan Purpose: Buy and Hold

Purchase Price: $43,000.00

Rehab: $50,000.00

Loan Amount: $93,000.00

Monthly Payment: $471.22

Closing Cost: $4,710.00

Interest Rate: 4.59%

Points: 3pts

Lien Holder: 1st Lien

Loan Term: 360 Months

Closing Date: 1/13/2022

Payment Option: Principal and Interest Only Payment Option

No Pre Payment-Penalty

CALCULATION RESULTS
Loan Amount: $93,000.00
Interest rate: 4.59%
Loan Monthly Payments: $471.22
Prepayments: No Prepayment Penalty
Total Interest: $76,638.24
Total Payable: $169,638.24
Balloon Payment: No

This is a great post, I am starting my journey and I have been married for 20 years.  She isnt into all of the real estate terms and doesnt necessarily want to be super involved in what I am doing from the business side.  She trust me to make the best decisions for our finances and to succeed.  Now the cool thing is she does like to hear about the opportunities I am looking at, she will listen to me talk for hours on end about the things I am doing and learning, she supports me going to meet ups and seminars, and she honestly enjoys all of it, just doesnt want to be the involved in the execution.  She even loves to watch all the HGTV shows with me like Flip or Flop, Flipping 101, and her favorite is Flipping Las Vegas, but she just likes to see what it could be.

I am hoping that once we get our first couple of doors under us that she will want to join in more and help me design some of the rentals or the flips I want to do.  But if not, I just think it is cool to have a woman I love that loves and trust me enough to succeed and will listen to everything I talk about.... even if she doesnt care...lol

sent you a DM

will you be doing this next week on 12/16, I can not make it tomorrow but want to come

I agree, that is where I am at now with the property, I am getting all of the documentation on it with the rental agreements and the bank statements showing it being paid on time.  Also, requiring the seller to get the Estoppel certificate so I can cover any word of mouth deals. So based on the information.  If I get this loan at 824 plus the 350 for taxes and insurance and then hazard insurance at 240 that's $1414 a month subtracted from 2025 leave 611 of cash flow per month.  If i put that into the capex, maintenance, vacancy i could end with cash flow at 200-300 dollars a month.   

 Would you recommend to have the points lowered and have the interest rate go up?

Ben,  thank you and thats what im thinking on the itemizing of the closing cost.  This is a private money lending company and this the is first proposal from them.  The interest only is something that i didnt see on there and need to ask them about.  Ideally this being my first property, I would look to get it purchased and refinance in 6 months when the interest rates are corrected.

Hi I received the below lender letter from a lender I am working with. My question as this is my first investment is if below are good terms.  It is for a triplex that is fully rented out.  It has rent of $2025 a month being paid.  The monthly payment is not very high so that makes it look good but not sure on the points what those are and the amount I will pay on those.  Also, beings this is a rental property would you go with an umbrella insurance policy? With the umbrella does that cover home insurance or would I need to acquire that as well?

Property Type: 2-4 Unit Residential

Loan Purpose: Buy and Hold

Purchase Price: $130,000.00

Loan Amount: $130,000.00

Monthly Payment: $658.69

Closing Cost: $5,820.00

Interest Rate: 4.59%

Points: 3pts

Lien Holder: 1st Lien

Loan Term: 360 Months

Closing Date: 12/28/2022

Payment Option: Interest Only Payment Option

No Pre Payment-Penalty

Any and all information to help me close this first deal would be great.

I am working on a private lender for my first property and have been talking to Warren Fergane. He said he’s from Freedom Loan Service Corp but it’s a gmail account. 

Just wondering if anyone has done business with him and if so could give me some information. 

In talking with the lender, the loan is at a 7% for a 30 year term with 1.5% of the total loan as the DP.  So the DP is 2400 and the closing cost.  The rent right now on 2 of the units is 675 and 1 is 725.  I do believe that this property would go to 800 per unit in 2023.  This is also in a location that could be used for Section 8 allocation if the property meets it.

I am currently still working with the agent on the details to get everything fully lined out on the property and then will provide more information.  I also do not have to take out the full 160K at a mortgage.  I can take out 130K to purchase then to a rehab loan through the same lender for a lower amount.