All Forum Posts by: Joshua Herald

We ended up finding temporary living arrangements during the rehab. After things are fixed up we plan to refi and get a tradtional or FHA loan to buy out the hard money lender.

What exactly is a Carryback?

I am about to put a house under contract. Its purchase price is 39k. ARV of aroudn 130K. Needs over 50k of work.

This is a house that my wife and I are planning on living in eventually. 

We have cash reserves for the entire purchase price and closing. However this would stretch up pretty thin. So we wanted to use a hard money lender for half the purchase price and all renovations. I spoke to a few folks and neither will touch an owner occupied property with hard money. I guess there is licencing required for that.

Can I form an LLC with my wife and buy this as an LLC. Then create a contract with ourselves as a lease option? This way i can get the hard money?

We would renovate with hard money within 6-10 months. Sell property from LLC to ourselves personally??

Any help would be great.

@Sam Martin

Everything was lining up until I mentioned living in the property.. they are not licensed to lend to owner occupied.

What options do I have here?Form an LLC and buy it though the LLC? Then have a lease option to ourselves? Then refi later?

Thanks everyone. I appreciate it. I have an investor friend who said they just put a line in the contract that says something related like "if the buyer cant pay for everything cash, they have the option to use a lender" obviously more legalese than that but you get the idea

My wife and I sold our first home over a year ago. It was a 5 year rennovation that eventually eliminated every debt we had. I actually wrote an article about this journey titled. "My first flip paid off my student loans"
https://www.biggerpockets.com/forums/223/topics/706157-my-first-flip-paid-off-my-student-loans

After selling, we decided to put the remaining money in savings and move in with the In Law's. Well that time is up. We have out stayed our welcome but we were able to save quite a bit of money in that time. 

We currently are negotiating with an out of state investor that has a home that needs a fair bit of work. 

Here is my question. We have cash to cover the purchase price and closing but thats about it. I know I can get hard money for the renovations. In its current form, it would not qualify for conventional lending.

I have a hard money lender that I worked with on my first deal but im curious if going through a hard-money lender needs to be disclosed on the offer. I see all of these "buy homes with other peoples money" articles all the time. They claim to buy your house with cash but its not theirs, do they disclose this? Im in ohio if that matters. 

My concern is using all of our nest egg at once. I want to use leverage and have at least half of our money for emergencies. 

If I go the hard money route, would I work with my guy, get the money and it show proof of funds in my account for my "Cash offer" to my Realtor?

 By all means, 

Im here to learn.

This house was a long hold flip. It was my first house. I used it to develop my skills as a home owner, not necessarily a rehabber or flipper. The deal was not sent to me through a "random" realitor. This was a fellow investor/wholesaler. She and her husband now have a large presence here on BP. For all I know, she has read this. But yes, I am establishing new connections for off market deals since I moved an hour southeast from my first home. 

Here are a few after pictures. I have a hard drive with all of the old pictures from the beginning i just cant seem to find it. Anyway, here are a few of the finished. 

@Larry Broadnax jr

Get your education. Join Facebook groups. Join reia. Get a mentor. Create a plan with acheiveable goals. Stick to that plan. You can do this. It's not easy. It's not free.

@Joan Defenbaugh

Age is a number. In my opinion it's an asset. Your life experiences will help you in this journey. I personally couldn't sit idley by knowing this method to wealth was just sitting here. I have told people that of I didn't continue to rehab or rent or flip, that it would be one of the biggest regrets in my life.