All Forum Posts by: Jordan Sunshine

@James C. You're forgetting one major problem with FHA, I need to live in the house for 12 months before I can start to make a profit off of it. The mortgage is approx. $2,500 a month not including expenses. This pushes expenses to about $3,000 with just me and my family living in it. For 12 months that's $36,000 a year of money I'd have to spend not to include the fact that I would be losing out on the profits I could be getting for that year. Yes, it doesn't add up to 80k but I'd rather have peace of mind because I will be deploying in spring of next year and wont be on island to find renters when the 12 months is up. I wont be back until month 18 of the FHA loan. I could hire a property manager after the 12 months but now we're treading into muddy water.

@Scott England How is this straw buying? I'm assuming the loan under my name, I just don't have the time to season the money so I'm adding an investor to the deal to season it for me, that's called a partnership. People do it all the time in REI and in regular RE as well where families pay for their children's down deposit on the house but the child assumes the mortgage. I could get a bridge loan for 6 months until I can HELOC the house and pay off the bridge loan but why would I want to incur massive fees like that when there are easier methods to achieve the same goal?

Where we are at now...

Now that a large majority of the issues have been ironed out I am still behind on quite a few dates that have passed in my absence. I'm hoping the seller understands my situation and is willing to keep moving forward on this deal because I'm highly interested in continuing and I don't want to seem like I'm not just because paperwork wasn't turned in on time.

We are still waiting for the seller to let us know that the electrical work has been completed and the appraiser has been scheduled so hopefully he comes by after the electrical has been completed. Also I luckily found 80k of cash that I can use towards this investment so now instead of FHA I am trying to get a Traditional Investors Mortgage with 20% down (hopefully, read on.) The only problem I have now is this 80k of cash is just that. CASH. It's not seasoned money in a bank account... I cant use it until 60 days has passed and its not easy getting 80k into a bank account that quickly even if I could wait the 60 days for it to be seasoned.

This leaves me in a very interesting predicament. I talked to my loan officer and to make this work I need to find someone with 80k in a bank account that is already seasoned and I need to have them put my name as a secondary on their account as well as get a written statement from them saying that I can use 80k of the money in that account, no more, no less, and then I can give them 80k in cash in place of their money from their account. They would obviously need to provide their routing number and bank account number to my loan officer (I don't need to know it) so the transaction can go through.

Now I just need to find someone who is willing to let me use 80k from their bank account in trade for 80k in cash so that I can get a traditional mortgage on the house instead of FHA and I can get renters into the house ASAP and start earning cashflow from this beast! As soon as the money is withdrawn my name can be removed from the account and we can part ways. (with some extra cash in their pocket of course)

So if anyone is willing to help or knows anyone who might be willing to help I would greatly appreciate it! This needs to happen asap because I need to switch the mortgage over before I incur unnecessary fees.

I hope this all works out and this deal goes through! its been one hell of a ride but hopefully its all worth it in the end!

To be continued...

Hey guys, sorry I haven't written anything on this post in a while. I've been EXTREMELY busy. oh and my realtor decided to quit real estate while I was in the middle of escrow AND while I was in Indonesia where I didn't have access to text or calls, only email! (ya I know crazy right...)

Anyways. Lets start from where we left off...

The home inspector came and did an inspection on the house, he found that the electrical was so messed up that raw grid power was going directly from the road into a wall socket and that if someone plugged in the wrong device into that socket it could practically blow up or at least start a serious fire. (talk about bad electrical work...) he also found some water damage caused by bad ventilation and exposed electrical wiring in a bathroom (seriously. talk about death traps in this place!) as well as some minor structural damage but the foundation is good. A bunch of other stuff that was minor as well but shouldn't be too bad to fix up.

So I went to the seller and showed the home inspection and they said "we will get our handyman out to fix it but it might not be to code" (SERIOUSLY?!?!) That one made me flip out and I told them that the electrical needs to be fixed properly or someone could die. They responded and said that they would hire a licensed and bonded electrician and the repairs would be covered by a transferable warranty on closing (yay!)

With that being worked on I took a 10 day trip to Indonesia for work. While on my trip... my realtor decided to not answer any calls or texts from anyone and no one could contact him. I eventually find out that my realtor quit real estate in the middle of my escrow (wtf?!) and that tons of paperwork was left unfinished and my request for a 10 day extension was never put in (to cover me going on the trip) so when I came back I had a whole ton of work to do as well as a bunch of dates that passed because I didn't get my extension...

The mentor of the realtor who found me the deal (that's why I decided to go with him instead of my usual realtor) said he would continue from where we left off and clean up the mess that was left behind so I had to explain to him everything that happened with this house so far and where I thought we were at and he had to tell me where we were really at. Finally after a couple days of work we start getting everything back on track and the deal started moving again.

Hey guys,

I have never done this before to anyone as I hate asking people for favors but I am in a HUGE pickle right now and REALLY need a favor from anyone willing to help! This needs to happen ASAP! So anyone who is in Hawaii, preferably on Oahu or anyone who is out of state who can figure out a way for me to get the 80k cash in hand to you please read on!

I have the deal of a lifetime currently in escrow, I was going to go FHA and buy the property but I recently came upon 80k in cold hard cash to use as my down deposit for the mortgage. This makes me want to go Traditional Investors Mortgage with 20% down instead because now I can put renters in the house immediately and start cash flowing a whopping 1500-3000$ a month in cashflow!!! YES 1500-3000$ AFTER ALL EXPENCES! (If you are really interested in helping me I will share my numbers but none of that matters for why I'm asking for help)

The reason I'm asking for help is because I need the 80k to be seasoned and it's currently in cold hard cash. It would take too long for the money to become seasoned if I put it in the bank now and I would fall out of escrow on the deal of a lifetime! So what I am asking of anyone willing to help is to borrow a bank account of theirs who has 80k of seasoned money in it and I will give you 80k in cold hard cash in return the same day the money is withdrawn from the account (if you want to bring a lawyer and write up legal documents we can)

What needs to happen to make this work: (at least what I've figured out so far) The 80k needs to have been in your bank account for at least 60 days. (seasoned) You would need to add my name as a secondary to the account and write a statement saying I have permission to withdraw 80k, no more no less, from your bank account. I will then give you 80k in cold hard cash for your 80k of seasoned money in your bank account. (plus your fee for letting me use your account for this one time transfer) The money from your account will go directly into the down deposit of the loan and I will never actually touch the money or access your account. (I don't even need to know your bank account number or routing number but the loan officer will need to know it) The day after the money is withdrawn you can take my name off your account and we can part ways.

If anyone is willing to help or knows anyone who might be able to help, I could really use it! I cant let this deal of a lifetime fall through! This plan was given to me by my loan officer so I do believe it to be legal. If there is anything wrong with this plan please let me know but also give me a workaround so that I can make this deal happen!

Any and all feedback is greatly appreciated, positive or negative, but please don't call me a fraud or scammer because I'm not. I'm an honest investor who just needs one favor to land the deal of a lifetime and I am desperately seeking help to make it happen!

I hope someone is kind enough to help!

Jordan Sunshine

2nd day in escrow:

Woke up and got a response from my realtor that the seller confirmed their availability date for the inspection so I called back the inspector and locked in the date and time and checked that off my list of things to do for now.

Called my mortgage lender and discussed the plan with my mortgage and steps we would need to take. I will be buying this property with an FHA loan initially then in a couple months when my VA is available I will be refinancing but before I do that I want to take the appraisal to the state and contest the current value of the house to make it lower. (Why you ask? because that's less I have to pay on taxes! XD I can always contest the value back up after I renovate the property and decide to sell it, if I ever do decide to sell)

I also called around for property insurance, luckily I don't need flood insurance even though the property is literally right across the street from the beach ^^ but I did need hurricane insurance. I called the usual insurance places. Geico (horrible rates) State Farm (cant insure because its too close to the beach) and some others but didn't like any of the quotes. My mortgage lender suggested a place and she reached out for me and when the quote came back I was stunned. The quote for both regular coverage and hurricane coverage comes to a grand total of approx. 120$ a month! :O This rate is still pending underwriting but in my numbers I had estimated at least 250$ for insurance as month, already making extra cashflow!

With this insurance price as well as dropping the mortgage insurance when I refinance to my VA loan in a few months I will already be cutting almost 400$ off the total cost of the mortgage. Hopefully if I can drop the value of the house and pay less in taxes that will push the savings over 400$ a month. Only other way I know of to save money on the mortgage would be to get lucky and get a lower % rate but currently I'm quoted at 3.75% for the FHA loan (4.773% APR after everything) so that's really not bad IMO. Maybe I'll get lucky and get a lower VA rate ^^

Almost forgot to mention, I called up some termite inspection companies and got some dates of availability for them to come out and sent it to my realtor who will be telling the seller to schedule the inspection (I made sure in my agreement that I would be able to pick the termite inspector and that the seller would pay for it up to $1000 so I'm not worried about that)

After all that was organized I started working on collecting my 2 tax returns, 2 recent paystubs and went to the bank to get my 2 months of bank statements for the mortgage qualification (I had already done this earlier in the year, about Feb, so I knew what I qualified for, what I needed to fix on my credit, and how I could improve my DTI, these papers are just to make sure they have the most recent documents so they can speed up the underwriting when it comes time to do it.) I also took my 1$ check and dropped it off at the title company :)

That's all for today and probably nothing else to report until the home inspection comes in. As always though I'll write anything in here if it happens!

@Lane Kawaoka When the inspections, appraisals and repair cost quotes come in I'll release my before guestimates as well as my recent, more accurate guestimates of the numbers I plan on getting on the property. When that happens please feel free to evaluate my numbers and iron out any errors I might have made. I'm always open to constructive criticism! :)

Just got an offer accepted on a property in Hawaii yesterday, just making this as a record / log for myself as well as others to follow along and give suggestions or recommendations as the process unfolds. Wont be giving much for details just yet, maybe in a couple days when I have more time to write up a good post or two. For now, here is what I did up until today.

Pre Acceptance:

Walked the property and verified the numbers the current owner was getting with the tenants. Also did a rough estimate on repairs and talked to the owner letting her know I was highly interested in buying the property. Did a biggerpockets BRRRR calculation on the property using https://www.biggerpockets.com/brrrr-calculator (I will share this later) and over estimated on all my expenses just to be sure I'm comfortable with what I'll be getting back.

Sent in a low offer to see if she was interested in negotiating the price as what it was listed for was way more than the house was worth. Equity in the house went up almost 100k in one year (WAYY to much for the area and the house) and if you want a hint on the price they were asking, the taxes went up 20% in that year.

Got countered at 50k less than asking and I countered their counter offer with 100k less then that. They rejected my counter offer and 20k below their original counter offer. I declined the 2nd counter offer because I felt the house was still worth way less than what they were asking and moved on.

About a week later I got another offer from them for 100k less than initial asking price I still disagreed esp because I never saw the 2nd floor or did a full walk through in every room. They wouldn't budge at their price and said if I wanted to negotiate the price more i would need to go into escrow.

I nearly walked away from this deal again but decided to give it a go, but just to be safe I made sure I covered my assets ;) My offer was written up for their new asking price and I made sure I wrote in a couple contingencies to back out if needed as well as have the seller pay for an inspection. Oh almost forgot to mention. Earnest money was only 1$ :) with no additional money required.

Had to redo my BRRRR calculations because of the newly negotiated price but it still slightly fell within my comfort zone. Still not very happy with the price currently.

After Acceptance:

Got accepted the same day (yesterday) late afternoon. Figured it would be best to wait till first thing tomorrow to start making phone calls.

Today:

Woke up early and did my research, texted some other real estate friends and asked for referrals for inspections as well as wrote a list of things to do. Also marked out the dates on my calendar of key "need to do before" dates so I wouldn't forget.

Called around to some of the suggested inspectors and asked for quotes and dates of availability as well as called up my mortgage company to let them know I will be needing them to start some paperwork. Let my realtor know about the dates and times the inspectors were available and told him to let the seller know so they can pick a date to open the house up. Also asked the realtor where I needed to go to drop off my 1$ earnest money check :)

Here's a list of things I want inspected for in this house:

Mold, Asbestos, Lead paint, Lead pipes, electrical, plumbing, zoning, permits, setbacks, height limitations, other environmental assessments, land surveyor, pest control operator.

Also since this property is close to the beach I called a couple friends who are working on quotes for insurance.

I'll keep updating this post as the weeks go on and release more of the property information and other info as well as pictures!

This will be a 3 hour event from 3pm - 6pm and will be located inside Stadium Giant Malts and BBQ (Enter and take the stairs to the 2nd floor) It is not required but suggested to buy food from them to support them for allowing us to host this event.

We are a mastermind group that tries to come together every weekend we can and we share ideas, knowledge, deals / business, and try to work together to help each other achieve our goals. If you want to know more about us feel free to go to www.facebook.com/groups/OahuREandB

During this event we will be identifying everyone's strengths and weaknesses and trying to combine our strengths to overcome our weaknesses. We will also be starting to create goals and milestones for our events that we will achieve throughout the year.

If you are good at finding properties then come prepared to talk to people who are ready to buy a property. Those ready to buy, make sure you come ready to tell everyone what you are looking for as your investment.

Those who are trying to find the capital to start investing will be talking to those who know how to save and make money. Those with capital, maybe you are interested in lending to others for a fee.

Those with knowledge of any kind, be prepared to share it with those who are asking questions, and those who don't know what role they can fill, lets figure that out for you too!

Lets work together and share our strengths to help others weaknesses so that we can all start to get closer to achieving our goals. When people start to work together amazing things can happen!

@Edgar Gonzalez

Seeing as you just joined I'm skeptical on what numbers you think you've ran on your house? Not trying to put you down, just trying to open your eyes. Our market is not the same as the mainland and you need to be VERY careful when investing here. Run your numbers multiple times and have someone else verify them as well to be 100% you have a good deal BUT you also have to be quick! good deals don't last long here, like hours at best. unless you find that hidden gem that no one thought about but that usually requires a larger reno budget.

If you don't mind, help me out and lets see what the actual numbers are on that house.

Repair costs:

Mortgage payment:

HOA Fees:

Maintenance Fees:

Water:

Elec:

Cable/internet:

sewer/gas/trash/other small expenses:

Cap Ex:

Vacancy rate:

Turnover expenses:

Property Taxes:

Insurance:

Other Expenses:

Gross income from rent:

Yearly expected appreciation:

If you don't know some of these, feel free to search the forums and find the answers you are looking for, you'll end up stumbling upon some good reads and if you have questions after reading the articles feel free to ask.

@Lewis Chart That's still about 10k bleed out a year or 830$ a month :x if you want to share your numbers in private I would be more than willing to help you find a way to make it positively cashflow. I would have to know everything. Vacancy rates, cleaning service costs, maintenance fees, advertising costs, etc. but I could probably figure it out.

As for being a private lender its pretty simple. You would take your cash and you would lend it to an investor for X % per year. You can structure it as quarterly, bi annually, yearly, or not so common monthly payments. You would get your X % and the investor would get to use your money as they please. You can also make it deal specific so when a deal is done they pay you back everything. Or time wise where they pay you back everything after 1-2 years. Many different ways to work that out too.

There's not much information to go off of but I'm guessing if your condo isn't making you money then I wouldn't invest here. Doesn't seem like your cup of tea. I would take that money and use the BRRRR strategy in your area and go from there but then again maybe buying houses and having rental properties just isn't your thing either. Have you thought about being a money lender? You will take a much more passive role but still get decent returns on your money and wont bleed out like your condo did.