All Forum Posts by: Jonathan Wooten

Good luck man. 
1. Listen to the podcast everyday, it keeps the fire hot.
2. Go look at houses everyday to get a feel for the neighborhoods and comps. 
3. Compare 3 contractors prices and then become friends with as many as possible, they will start to cut you deals of you keep them busy.
4in my opinion, finding deals and trusting your research is the hardest part. Stick with it and make it concrete and become the best at running numbers. 
5. Get financing lined up so when you fined the perfect deal, it's ready to be bought.

Good luck man

Hypothetical numbers here. Value at 100k and your and investors are in at 80k. Loan to value puts you at 80k cash out refi. 80k times 80% is 64k cash out refinance. That's the number you should walk away with in this scenario if I am understanding your post. Gives a bit more detail and the numbers get sharper. 
Good luck!

If comps are running 10-15% higher than your purchase price, be prepared to talk to a few lenders who will offer up to 80% of the value. If the comps are at 200k, your in at 170k then a lender will offer up to 160k leaving you with a 10k deficit.not bad. All hypothetical numbers but multiply the comps by 80% and that's what the lender should be cashing out at.

Depends on your goals. If you're looking to build an empire, you will die in debt (that's not a bad thing nor bad debt) you will be hungry for more deals in the future and if you can show cash flow returns of 1k per month vs 2.5% returns. I'd go with cash flow. 
Also 4% is still great. If you end up waiting, you could be hit with a 6 -7 rate and that's no fun. 
That's in brief ...my opinion
Also, don't forget that Denver is at its peak or close to it so that should have weight in your thought process.
Good luck man!

I like private money. I know it may seem impossible to get private money, but I have found 3 private lenders this month just by asking around. Make it apart of every conversation you have.

Also, if you are using all your cash to buy a house, that does decrease your ability to buy new rentals. And this whole game is based on cash on cash return. If you invest 40k in a property that cash flows 400 a month even after repairs and maintenance, it will still take 10 years, roughly 8-9percent returns. Might as well invest in stock market. Don't do that btw lol just a point. Find a better way to make your cash work for you. Look for 10-12 percent returns. It's more difficult but way worth it in the medium long term game.

Good news bad news. Dti goes away with a seasoning period. 1 to 2 years. A good option would be to find a lender who is willing to overlook the dti in lieu of a higher interest rate. It's a catch 22. I had the same issue but everyday, I called different lenders, Banks, private money hard money etc and found a few different options to avoid dti. Make sure you run your numbers with the calculators to verify income with higher interest rates. If you decide to do that, use this as your seasoning period to refinance with a bank for a lower interest rate and they will consider your cash flow a positive dti. Hope that helps

From Charlotte. I have a guy who is listing my dad's house as we speak. His name is Brian and I can give you his contact information if you want to DM me. They have the highest ratings, that's why I called him. Really cool and straight forward guy.

hey guys,

I work at bank and I had a client come in. He had roughly 100k in his checking and I asked what he did. He was a contractor and we started talking more. He said he built a 40 unit complex for 65-70 per square after everything. Amazed, I asked if that cost was standard for his builds and he said yes. so I can build houses, townhomes complexes etc for 70 a square(if this is true)

Does this sound fishy? hes been doing it for 23 years, but I want to make sure I have something to bring to my investor before I start prominsing 70 a square prices....

Thanks!

make sure you factor in the long hall cost. cap ex (long term fixes like roofs and hvac) and maintenance  (a little leak here and there and damage to a wall) Brandon does an in depth analysis on this. since you already own it you can still run numbers to see where you are currently. if your positive, awesome. if your negative, not a huge deal, but think about some strategies. You can always resell the property, you could pay it down for a few years and do a refinance to get a lower mortgage to increase cashflow. but first things firat, go watch that video and see see where you are. remember, if it's negative or low roi, learn where you made your mistake, don't freak out, you still have an awesome asset that you can do tons with.