All Forum Posts by: John Graves

Hello! This may be the start of something beneficial to both of us! I'm newly committed to real estate but am looking to make connections and meet people who need a Junior Partner. ( like yourself)

I have a fist full of equity//cash but don't want to spend it all while I'm starting up. So I'm looking for a money partner while I do the majority of the sweat equity. If this sounds like something you'd be interested in, please reach out and lets have a longer introduction. Id love to see if our goals align. I'm here to make myself and anyone involved with me, as much money as we can make, as well as a network of awesome people along the way.

Thanks for your time! 

-John Graves
 

Hello there everyone. As the title says, I need a cashflow loan. Im new to this loan product and would love to chat with anyone who uses this already// Can make suggestions. I found a property that's : 5 1 bedroom units, able to STR in a heavily populated downtown area of a tourist heavy town. Its sitting well below market value and is currently rentable, before rehab, and will cash flow HEAVILY along with long term appreciation. Duplexes in the same neighborhood are selling for over 2 million.

Reach out and say hello! This one is just outside of my reach to grab alone but is very attainable with a partner. Who wants to partner?

Beauler? 

     Hey BP readers, thanks in advance for your time. I know how valuable it is, which is why I’m perusing this route in the first place!! 

     I’ll list my situation and my questions. Basically I already know what direction I’m headed in. I have equity and I’m educating myself every day. I do however want some outside opinions on what I’ve put together from my reading. 

  145k initial loan on my house

  130k  current loan

  10k judgement (divorce issues)

   5k car loan (currently contesting this as it’s my x wife’s)

  240k current market estimation

        (No rehab)

  280k+ After repair value 

        (Possibly a good deal more)

5 true bedrooms 2 full bath 1680sqft, comps to only 6ish properties in the area which are valued in the 500K+ range but all have either brand new construction or a large plot of land. Neither of which is my house so I'm comping it to 4bedroom houses with similar sqft/ land/age. So my ARV is a bit tricky after the 280k mark to really be sure of but it's possible to get more.

Ok that’s the picture of the situation. 

     Here’s what my plan is. Take out a heloc for rehab and removing that judgement from my credit. Pay off the car loan that’s not been paid because I’m tired of it being on my credit even tho it’s “her loan/car”. Thinking 35k ish (15 for judgement and the car loan) then I’ll have 20 for rehab. 

130k + 35k =160k essentially

After rehab, get a cash out refi for the remaining equity ( @75-80%) and then keep up the BRRRR

That’s my plan roughly

Here are my questions and the credit side of things: 

     Wells Fargo hold my mortgage but denied my first Heloc request. Mostly for the judgement and car loan. Which is what I’m working to remove.

It's been a month, my score has improved by over 20pts to a 645, my DTI has improved to 26%, and I've opened another credit card because I have only 6 and they want to see more accounts. Which were the other reasons they listed for the denial.

     Should I : 

    Apply with them again at the same heloc amount of 50k. (Old plan)

    Apply with them again for an amount of 35k (new plan) 

    Apply with them and everyone I can for the original 50k, take the best offer IF I get one. (50k is just more wiggle room for me)

    Apply with them and everyone I can for 35k take the best offer IF I get one. 

    Wait another month or so before trying again. My biggest aim is removing this judgement using my equity without refi. That way I can rehab and then refi cashout for a larger amount. The property already cash flows and I house hack. I’m not trying to flip this house. Maybe a 1031 exchange at a later date if anything. 

   Thanks for reading this far and I really appreciate your thoughts. I think I have a pretty good idea of what to do buuuut outside perspectives is always helpful. 

     I appreciate the warm welcome everyone. I’m hoping this will be less hoops to jump through then I’m thinking... but once I clear out everything and get my house cashout/refi I’ll be in a much more flexible spot @Russ Scheider what’s your niche here in town?

I'm at the dead beginning of this process but I have my plan. I'll try and make this coming month's REI meeting as well. Once everything updates at the end of the month I'll start my heloc search.

     My first attempt with Wells Fargo who holds my mortgage. Was denied for the very issues I’m going to use it to pay for (small judgement for 10k) and it looks like I’m still getting dinged for my xwifes car loan (6k. I’m tired of fighting it on my credit I’m just going to pay it off ASAP with the heloc). Also credit utilization was high but will be under 30% after this months reporting.

     So how should I approach this: 

     Should I try WF again for a lesser amount (30k this time instead of 50k). With a better credit score (20pts up),  Less then 30% utilization now

  Or   Should I try them annnd everyone else in town for my initial loan amount and pick the best one assuming I get a taker?

  Or   Should I try for 30k heloc over the 50k when I do this? 50k is more then I need but the wiggle room is comforting. 10k is gone to the judgement for sure and 6k probably the car loan as well. Which would leave 14k for house rehab/refi.

     Do you have a better suggestion or a preferred lender for someone in my position? 

Initial loan. 145k

Current loan amount: 129k

Current estimate value: 220k

After Repair value: 280k+ 

Wanting to get 30-50k for judgement/car loan/rehab via heloc. 

Refi cash out, roll heloc into loan. Drop PMI

Property cash flows already 

     Thank you for taking the time to read this far and any thoughts are appreciated! 

@Danny Randazzo I’ll have to check one of those out. I’ve been a chef since about 14years old. I don’t mind the work so much anymore but it’s well past time to have some money in the mix. I grew up on James island so being familiar with the are should help quite a bit I’d think. 

     Do you stick with local investing or have you moved into the online world to expand. I don’t have an end goal yet but I do know where the next 5years at least will be going.

Also what's your opinions on the Charleston market right now for BRRR. Rents are astronomical. BRRR vs flip a few to build up some capital.

     I have a notion to open a Green paper product company here in the next 10 years. Legislation is going to mandate all Green products eventually. Charleston is a huge restaurant town and the amount of plastic waste is insain. Seems like a winner to put a company in place ASAP and have it already operating when the laws do change here. Who else is thinking beyond a 50 property portfolio like I am? 

@Danny Randazzo thank you for the recommendation. Any other Charleston SC investors/locals here? Saw a mention for an area close to mine the other day but not sure if they are out of state or not.

     What up people’s and mutual, well, whatever you identify as! I’m Johnny. The internet eventually let me here after looking around at property management/investment ideas. 

I purchased my house via FHA and like 6k down (3%ish) about 5 years ago @ 144k total loan 3.625% interest. Fast forward to today and my value is 100k + without rehab. I'm at 129k owed. Pmi forever until I refi.

     It’s an older house. 68 on the bottom and 86 for the 2ed story. 5 bed, 2 bath .47 acre on the lot size. 

      Sooo without going into too much I’m finalizing my divorce. No alamoney, no kids, house is mine (already signed agreement). Quit drinking about a year ago and decided to get my **** in gear. It’s going well.

      Here’s my rough plan, just seeing if there’s anything I’m overlooking or there’s a better way to go about it. 

HELOC for 30-40k. Rehab the house, probably cost around 20 total after the roof which Has to be done. I can do a lot of the labor myself so 20 is generous but 30 available to be safe.

     I said a heloc of 40k because I have a 10k judgement against the house via my X and some life decisions. So I have to pay that off before I can refi. 

     Rehab is going to be bathrooms, roof, landscaping,  air sealing, windows (little by little diy and budget allowing), fixtures and switches, probably cellulose insulation in attic, odds and ends.

     Do that, reappraisal for somewhere in the 250...mmmaybbee 300 range as I have one of the only real 5 bed houses in the entire area (6 only are Comparable).

Thennnn refi the heloc (which pays off the 10k judgement) into the loan and cash out. Buy another with a large down payment and rehab money. Repeat the BRRRR.

Also I typed this on my phone so forgive any weirdness I didn’t correct