All Forum Posts by: Jeremy England

That sounds like a unicorn. 

I've bought cash, but also considered HML which I refi out of at seasoning. You can also look into personal loans, or private money loans with folks sdira

got my start as a builder at 25 years old where alot of the same lessons learned apply, but didn't invest in rentals til I was 40.  I'm far more cautious now than I was then.  I have more to lose.  Plus, for those of us that lost a ton in the crash of 08, we are more hesitant.  So I'm going slow, and not overextending myself.  If the market tanks again, I'll be ok.  

 You likely can if you have good credit.  

Navy fed, USAA.  All these guys have personal loan programs for that much.  Question is what is your plan for 20k.  You arent' buying for that much, but you could certainly fund the rehab for another investor that needs a partner.  

I'll be buying again around the feb time frame, if you are still looking by then.  Maybe we can tallk

I figure if I can get 9 more like the one I have, i'll be set.  10 properties, totally doable goal

You'll need a 4pt inspection for insurability and wind mitigation inspection to get the best rates.  That's across the board.  If the roof is older than 15 years, then inspectors are going to say it needs to be redone.  Doesn't matter if its built with 30 year shingles.  

My advice is free so take it for what it is worth but ensure you have a good exit strategy in place before you buy. That HML is going to come due and most if not all conventional banks are going to want that seasoning period done before they will refi you out of the HML. But not only that, if you don't meet those income and credit requirements, they still won't refi you out.

Were I you?  I would focus on building my cash position, and perhaps working for another investor part time.  

If someone tells me they are buying AND rehabbing a property for 25k, I'm skeptical.  Be sure you are being realistic in your rehab costs.  

But if the deal is as you say then the only downside I see is the variable rate.  If interest rates keep rising you could end up with a more expensive loan.  But that would be an acceptable risk for me if I were given the same terms as you. 

yes. After 6 mo ill refinonce and pull 75k out. This will only leave about 2-4k in it for me and ill be cashflowing over 300

 This is all true its just not as easy as its spoke of on this forum.  Plus i hear of people scaling very quickly on the podcast and forums.

Im not sour on the idea. Its just not what people assume its going to be.  More like buy rehab rent wait.......refinance. 

Ill be doing it again, but people should temper their expectations

What im talking about with the two refis is if you buy, you have closing costs, if you get delayed financing (which is limited to your purchase price) you have closing costs, and if you refi again to get to the 75pct ltv, you have closing costa

Take this latest project. I bought at 62k

I spent 17-18k getting it rented

I can only refi immediately for 62k at 6pct, and a closing fee of like 1000 dollars. So my costs would be about 2200 to close

I would leave 18k of my own money in the project

Scaling, this isnt sustainable without alot of cash to float it. 10 properties = 180000 of my own money in it.  

To access that cash id need to refinance again. Increasing the costs and only after 6 months of renting