All Forum Posts by: Joel Stanley

I have also started the same program. My situation is a bit different. I only have 14k in personal credit. I was at 80% utilization, credit score of approximately 715. I had 10k cash which wasn't enough to get a deal going in my area. I contacted them. They said if I'd use 6.5k to pay down existing credit to below 50% and then use the other 3.5k for their fee that they could get me between 40k and 60k in the "first round". If it's ok with you Doug I will also post on this thread to see how our results vary considering our different starting points. My plan is to refi once I get enough renovations done to get a conventional loan. The house will definitely have the equity when I'm done.

I bought my first home in 2012. I lived there until June of 2017. With a booming economy and rent prices on the rise it seemed like a good idea to get an investment property... but at the same time my family (3kids) was feeling a little cramped in a 3BR 1bath. So when the house next door came up for sale after a complete rehab we jumped on it. The flippers had taken the worst house on the block and made it the nicest. So we moved our stuff next door and found a renter for the old house.... November 2017 we're struggling financially and I came across Morris Invest. I started watching Claytons videos and soon started looking at houses for sale in my area. On our way to look at some cheap properties we passed a large craftsman with a sign in the front yard. We asked the realtor about the house after being less than impressed with the other houses we had seen. She got us access to it... The paint was chipping off of the wood siding,  the roof has a couple shingles missing, the fuse (not breaker) box had pieces of wire that had been poorly installed to add exterior outlets to the house, ugly old carpet, peeling linoleum, dated kitchen, etc.... then we find out the lot comes with 2 houses. The main house (the one that grabbed our attention) is nearly 1800 sqft with lots of room in the attic for a master suite, the house in the back is about 1000sqft and in worse shape than the main house. Originally posted at 150k and now a year later the seller had gone all the way down to 90k... I've done just enough work on my home to know that the remodel on these homes will be expensive and time consuming but I also see a large 4-5 bed, 3 bath house for my still growing family with a bonus investment property. The house is not nice as it stands but it's liveable. The purchase would allow me to make about 300/month cash flow off of the house we live in now after paying the mortgage and setting aside a percentage for repairs and the extra house would rent for 1000/month after rehabed.... we'd also be paying a much smaller mortgage if I could get it for the right price. 

So, I offer 50k. The seller comes back with 70k, I counter at 60k. We settle at 68k (about $25/sq ft). Now to find financing... I pull 10k out of my 401k. But the banks won't do it. None of the ones I found would lend on a house in that condition. I nearly gave up but after listening to hours and hours of podcasts I finally decide to ask the seller to carry the note. He agrees to a 15k down, 600/month for 3 years with the stipulation that I finance the remainder after the 3 years.... So I'm going to sign the contract tonight after I get off work. I have a long road ahead, lots of work to get done to make this a nice home for my family. 

Let me know what you guys think. I'm excited to have 2 investment properties to start off 2018 and a 3rd as soon as I can get that rehab done.

So, I have $10k that I'm sitting on. I want to buy a single family to hold for passive income. Rent where I live is about $1000/ month for a basic 2bed 1ba and upwards of $1250/mo for a 3bed 1+ bath. An investment loan requires 25% down which means I could only buy a house for 40k, less if you include closing costs, not to mention the lenders I have spoken with won't do a loan on a house that's worth less than 60k anyways. There aren't any houses here that are in rentable shape or minimal repair shape for that price... So, through a bit of research I found out about Fund n' Grow. I set up a call with them, they told me that if I'd spend 6 out of the 10 I have on paying down my revolving credit accounts and 3.5k on their annual membership fee they could get me a 0% business line of credit with a starting limit between 40k and 50k and then I would have access to even more funds if it went well the first time, evaluating every 3 months. Payback is 1% of remaining balance per month. Also, money back guarantee if they can't get me approved for enough funds the first go-around....

It seems like a good deal to me and would allow me to purchase an investment property that needs minimal work (in the 50-75k range) using an investment loan and still have funds to do the rehab.... What do you guys think? Is there a better option?