All Forum Posts by: Jesse Conners

Ok.. a motivated seller called today. his house is worth maybe 175k. Comps range from 143k-195k a lot of them being south of 175k. He owes 183k ruling out keeping the existing loan in place (right?). He says his rock bottom price is in the 150's ruling out the wholesale. The house was built in the 70s and doesn't need any major repairs but could use some updating. I've heard a lot of experienced investors say they have a strategy for every situation. I'm having trouble finding an end game for this one and would hate to let another opportunity slip through my fingers as I have spoke with a lot of sellers but have not yet closed a deal. Any advice would be greatly appreciated.

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Originally posted by @Kim Vandermark:

Hey @Jesse Conners! Good for you for seeking knowledge to find a better future! Being an owner-occupant as suggested by @Account Closed is a great idea! Talk to your local bank or perhaps get a referral from someone you trust for a good mortgage broker. I believe FHA loans allow you to put just 3.5% down as long as you live in the property for a minimum of 12 months. 2-4 unit properties fall under the same guidelines as single family homes, so purchasing a MFH would allow you to get rent from the other units, live for free (ideally) and make some profit. Minimally you would save on paying rent and can put that money into your next deal. If I was starting out, I would find a new MFH to buy every 18 months or so and take advantage of the loans available to owner-occupants to acquire many properties while stashing away cash to use on bigger deals. There are loans available for properties that are in more rural areas and those that need rehabbing where you can borrow the repair costs, too. Best of luck to you!

Thanks for the feedback! I will contact a mortgage broker I know right away to discuss the fha loan.

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Originally posted by @Account Closed:

@Jesse Conners

Check out information on purchasing a residential property with 2-4 units. You can put 3.5% down, live in one unit, and start pocketing the cash from closing if you play the deal carefully. With a purchase like that, you could toss all of your income directly to savings for the next purchase. The other units should pay all or most of your mortgage and then some.

Thanks for the quick reply Kyle. I've heard about a loan with 3.5% down. Where would you find this type of loan?

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I've been listening to the bp podcast and I know there are some very well established investors here. I would like to put my plan out there in hope of getting some advice and feedback.

I work a full time job (50 hrs a week) and I make 40k a year if I put in enough overtime. I'm grateful for having a job but I dread getting up at 5am every day and breaking my back for 10 hrs a day almost living paycheck to paycheck. For the last 5 years I've told myself everyday "there has to be a better way."

I stumbled upon a guru teaching wholesaling about a year ago and gave it a shot. After talking to one attorney I got discouraged and thought it wasn't viable in my market (Syracuse ny). In the recent months I've jumped back into wholesaling determined to make it work and learned the entire process. I currently have a mailing campaign in action but have not yet made a deal.

While educating myself on wholesaling I learned about other types of investing. When I heard about buying and holding I knew I wanted to go that route though I had NO capitol to put 20% down on my first mortgage or enough cash to offer a distressed seller to take over there's.

So my plan is to build some capitol wholesaling so I can buy and hold. Further more I'd like to continue wholesaling and pick and choose the properties id like to keep in my inventory along the way.

Is there a faster way to start buying and holding to create steady cash flow?

Any advice and feedback would be greatly appreciated and thank you for reading..

Jesse

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All Forum Posts by: Jesse Conners

Jesse Conners has started 12 posts and replied 44 times.

Post: PLEASE HELP QUICK!

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