All Forum Posts by: Jeshua Patrick

Lawson Ott sorry, post edit. This will tell you what you wanted to know. https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/nc. A quick scan says no, it won't work for you. There may be a caveat for housing providers though.

Lawson Ott the only way to know about USDA loan requirements is to do a little research on the USDA site or ask the lender if there are any special terms and conditions you should be aware of. Most likely it won't be a deal killer. If the deal is good take it.

Look at it this way. A cash out refi @ 75% LTV allows you to pay back your investor, pocket a little yourself for another investment, and collect $3k-$5k/yr in net cash flow. Oh, and did I mention you still have 25% equity built in to protect yourself. With your investor paid, you would then get to keep the cash flow moving forward depending on the terms of your deal. The investor feels good because they got a nice little ROI on their investment. If you find another deal like this one they will likely want to go in with you again on it too. You now have to decide if you would rather have a little higher cash flow now or the flexibility to create even more cash flow sooner.

I have done a couple IKEA kitchens myself and, while kitchens can be done cheaper, I do like the flexibility and space saving design over conventional cabinets. I haven't used any of their vanities as I haven't seen anything that appealed to me yet.

Chris Ayers it's good to know this is a good area to invest in. I hope it stays that way. Stephen Kiser thanks for the offer. It looks like you do some wholesaling. If it's ok, I'd like to add you to my network. Never know when we can help each other out. Chris T. thanks for the heads up about the BP meeting. I put it in my calendar and hope to make it out as it sounds like a great way to get to know some people.

@Chris T. thanks for telling me about this. I will be putting this in my calendar for sure. 

My name is Jeshua Patrick. I am 34 years old and live in Concord, NC, just outside of Charlotte for those unfamiliar. I have wanted to get involved in RE for quite some time and didn't know where to start. I captioned my introduction new learner because for the time being that is all I am. I will not be in a position to take any serious action towards a purchase for another 12-18 months. Why so long? I currently work full time, about 50 hrs/wk, and go to school in addition to a growing family. I realize that trying to add something like this to everything else would likely end in disaster so I'll be patient. Aside from a couple house transactions for personal use I have no experience with RE from an investing standpoint. I am in my second home currently, both involved some level of remodel. My current home is about 80% finished with time being a major factor in the speed of completion. My current expected equity upon completion is about 30%. Not bad for a house I bought on no money down about 4 years ago. My first house I basically got to live in for free for 5 years. My current goals for the next 18 months are as follows: finish school, save $20k, learn about the investing process (deal analysis, financing, deal structuring, business structuring, etc), and develop relationships with local pros (investors, RE agents, CPA's, attorneys, etc). I am definitely looking forward to your thoughts and questions.

I have never been a fan of Manufactured homes despite growing up in them. As for investments, I would also be a little cautious as my understanding is that many banks will not finance them. You may have to make a few calls to determine this for sure. In short sales, the bank has control every step of the way in most instances and will only approve them in limited circumstances. I experienced this myself shortly after getting married. We both had homes and hers was underwater financially. The bank made nice at first, then rejected the purchase offer. We were quite frustrated and sure we would lose the property in foreclosure. Fortunately, a small miracle came our way. When my wife bought her house she got a grant due to her status as a first time home buyer. The agency who administered this grant backed the mortgage note so the bank had little to no risk on the note. They had no interest in helping us and never sent our offer to the grant agency for further review after it failed to meet criteria for automatic approval. Even after I tracked down the agency and agreed to terms for a sale the bank fought us tooth and nail all the way to close. They often failed to forward paperwork to the grant agency, hung up on my realtor, and ignored my emails and calls. In the end though, after much persistence, I beat them and got her house sold. I tell this story, not to scare you away from a potential opportunity, but rather to make you aware of the hard work that will be involved in securing such a deal. If the sellers are unwilling to put in the work required or are unable to gain an advantage against the bank then both they and you will be at the mercy of the bank and you will end up frustrated and empty handed. I for one would only pursue a property like that if I stood to make a lot of money at the end of the fight.

I am new to this site and new to investing. I have no experience with Redfin yet but I can tell you that Zillow and Trulia are full of incorrect property data that contributes to inaccurate valuations. A good example of that would be my previous house which was a 2B/2BA that they had listed as a 3B/2BA and an incorrect sq ft leading to a higher value estimate than reality. I'd have to go back and check my current property again but pretty sure it was wrong also.