All Forum Posts by: John Verner

@John Oh I would go for it. I assume your not married and have no kids. You can eat ramen if you have to and rent a room in a house.

I think the reward far outweighs the risk.

I currently am using a rental house that is owned outright for a HELOC to fund the interest on a construction loan with my brother. My brother owns a peice of land outright and he is putting it up as a collateral for a new construction loan. We are splitting the property into two lots. Here in MS it costs about $100/sqft to build a house. If we do a lot of the work ourselves with the help of licensed contractors, it will cost us about 50/sqft. It will cost us about $65000 to build. It will be worth about $95000 after conservatively. I do believe it can be done to borrow off of new construction. Make sure you are researching the value based on amenities provided and location of house. Sounds like a winner.

I will be at the conference. Would anyone like to meet Sunday afternoon or night?

I will be there. Anyone want to to meet?

Investment Info:

Single-family residence buy & hold investment in Tupelo.

Purchase price: $33,500
Cash invested: $5,500

Bought an estate sale 1bd/1ba house. Converted the house into 2bd/1ba. Renting for $750.

What made you interested in investing in this type of deal?

SFH that had enough square feet to convert into 2 bd/1ba

How did you find this deal and how did you negotiate it?

My realtor had another investor trying to buy it from an estate sale. The estate lawyer was dragging his feet. The investor lost interest and moved on. She presented it to me, and I just right in. There were no negotiations because this was a hot property.

How did you finance this deal?

Commercial loan with bank

How did you add value to the deal?

Did most of the work myself on the weekends. Enclosed a porch into another bedroom.

What was the outcome?

Rented for $750

Lessons learned? Challenges?

Hire out more contractors.

I would be interested in meeting up. I live in Oxford, MS, but I have done a few deals in Tupelo, MS. I fixed and rented a SFH and I am building 2 SFH. I plan on finding 2 more single family homes by end of year. In the south it isn't uncommon to find 2% instead of the 1% rule and cash on cash returns of 20%.

I will be getting there Sunday mid-afternoon.

I have 5% of 300,000 which is 15000. I believe I can get my hands on more if I have too, but I would need to bring in a partner. The seller does have a loan, and the agent said he owes too much on the house to do seller financing. 

Can you explain an assignment or wrap? 

Hi All,

This is my first real estate deal. I will not take no for an answer. I would like some suggestions on how to make this deal happen. 

It's going for 350,000, and the deal includes 5 single family rental properties. The houses are worth a little over 400,000. The seller won't make the deal unless all are bought at once. Not sure what type of loan I need. I can get 5% down. I am taking a contractor along with me to look through the houses to find stuff that needs repair. I feel I can negotiate the price down hopefully to 300,000. The five places already have tenants and bring in $4000/m. I would cash flow about $1000/m. 

Has anyone done half financing through bank and half seller financing? Is it possible to make an agreement that after I buy the house I can make a larger down payment after I appraise the houses and take out an equity loan? 

I found a bank that would do 10%. Is there anything that might help me negotiate?

Hi All,

I currently live in Tupelo, MS. I am trying to invest in 5 single family homes under one loan for 350,000. The seller will only sell the properties under one loan. I think it may be called a blanket loan. I can come up with about 5% down, but I am having a hard time getting financing. Does anyone have any suggestions? 

Thank in advance.

John Verner