All Forum Posts by: Jimmy Nguyen

Ok that's what I was thinking! Thanks for the insight and I'll stay away and keep working w/ hard money lenders.

Just weird because I don't get why people would try to do this since they are the ones "giving away money" and not taking it but people scam for anything these days so not surprising. 

Hi All,

I'm going to try to revive this thread. @Jamal White did you ever go through with using a private lenger or anyone else?

I have been seeing more posts from private lenders on my areas REI/A FB groups and they are offering 5% annual interest, it seems a bit good to be true. I don't see why they would charge only 5% when the best hard money lender rate I have seen is like a 8/2.

Do private lenders need to have a NMLS number if they state they are using their own money? 

I'll ask for references too. 

I used Danny from Advance Construction Services. He's also doing a renno on my friend's renno. You can tell him I referred maybe it'll get you a good price

@Justin Fraser congrats Justin! Awesome story! That's def where I have been looking to take my portfolio also so great to hear someone in the community being able to do it. I invest in that Southern VA area too so even better to hear success stories. If you need any other investors for new apartments, I would love to be involved as an investor!

I think we're going to go with the 6 month cash our and refinance. That will free up my HELOC for more buys. I'll most likely go into a 30 year like what @Colleen Goldstein mentioned and try to pay it off in 8-10 years.

FYI - for Propser/Lendingtree, rates are fairly high, in the 10% range for borrowers BUT as an investor I was considering being a lender on there to have an additional revenue/investment stream

Thanks everyone!

That was also my concern about the HELOC for that many years I'm hoping someone will reply also! Still looking for some advice!

Hi All, 

Would love some advice!

My Scenario:

I have 3 properties total

1st house - I have a mortgage on about 50k and I have a HELOC on it that I haven't used

2nd house - house is paid off and I own free and clear, it is worth $120k

3rd house - I just bought this house on a HELOC. For this new property, I still have to pay renovation costs. I bought the house for 55k, renovation should be 40k and AVR I would think is around 120k

I have 2 options for BRRRR:

1) Should I take out cash, put a mortgage on house #2 and pay off the money I borrowed from the HELOC that I bought the house with along with renovation costs, the total should be under 100k. The interest rate on this property would be 5.25% and $4k in closing costs. I can put it on a 15 year or 30 year loan but I'd try to pay it off in 7.5 - 8 years.

2) Should I just pay the HELOC and renovation costs which will prob also go on a HELOC with the rent money when I rent it out? The HELOC rate right now is 4.75% but it would take me 7.5-8 years to pay off using the rent money I get.

Dilemma is that 

1) If I take out cash and put the house on a mortgage, I'd be paying a higher interest % than my HELOC and would have to pay close to $4k in total closing but I'd be able to write off interest on my taxes. 

2) If I don't open a mortgage, I'd be paying the HELOC on my rental money for 7.5-8 years in which the HELOC rate can increase and I might be tied up with no funds to expand. Also, I won't be able to write off interest.

What would you do!? Any advice would be much appreciated!
 

Thanks,

Jimmy

All, what are your thoughts on the raising prices in the Hampton area, is it getting too high? Prices have doubled since last year. I think there are still some room so not panicking but keeping an eye out. Hoping the area won't get overpriced.  

@Justin Pierce I actually just went down last Thursday to meet w/ a few GCs for my new property, they were solid leads. I'm waiting for quotes and will pick one of them to do the job and maybe will stick w/ them for any other properties I get down in the Hampton area. Let's meet up soon!

Hi Donnell, yes I did a walk-through w/ 4 yesterday. not sure which one I am going to go with yet. I can give you the info of all 4 or I can let you know who I went w/. Just let me know. Also these are general contractors, I didn't individual contractors.