All Forum Posts by: Benjamin Cowles

 Thanks Ned

 Thank you! "Find a partner". Forgot about that. Split it as a last resort. definitely something to look into. 

I've heard of that brrrr method. But again you'd need conventional financing at least after the hard money for rehab. Right now the best I'm looking to qualify for is a no doc loan which requires 30% so that's my starting point. 

So yeah, I've just got to find that deal, that situation where I can get something with enough equity to make a second loan to look attractive.

Thanks

how old is Brian's daughter?

$10k a month??  10k/4 weeks/... =about 3 haircuts an hour at what... $25 a haircut?  I haven't gotten one in over 20 years.  holy sh$! I was senior in highschool trying to look good for the ladies.  hmm, interestingly haven't had much luck with them since then.  Anyway, that was gross income no?  Sounds like a good scalable gig.  Just wanted to let you know someone read your post after 12 months lol.  Oh, *bump* on the types of loans you're seeking.  I'm sure you've already looked but I'll just throw this in:

no doc/stated income loans

I specified your area but I think they usually cover many states anyway.

edit: I haven't PAID for one in over 20 years I should have said. I'm well groomed as you can see.

In search to find as much financing possible I'm running into a 70% ltv max. what one should expect to find if they can't qualify for conventional or better right? so what then now?

I'm sure I've read my solution somewhere but my brain only remembers so much. first of all, who funds second loans? people looking to make good returns who trust you? how would that even work especially as I've no track record i wouldn't have much confidence to sell someone on my word. But I don't think I even know anyone who'd be able. 

Is the next logical step to look into how to add more equity to the deal to make the second loan safer? 

Is this basically how it works i.e. say you have under contract a million dollar property under contract for 200k needing 200k rehab you'd get 2nd and 3rd loans all day? 

What other routes can i explore to get those ever-elusive zero to little out pocket financed deals?

Without friends/family or qualifications to get funding >70% ltv, how can I get at least another 15% ltv covered on top of that 70% or all together? 

Just keep searching for that motivated enough seller? just trying to fish for ideas i may have missed so far. thanks

 I think I get indiscriminate notificationsb because after each blog I post on I get this email to "confirm follow" thinking that if I don't it won't have me follow. If I ignore this email will I still get notifications for just replies to my post? 

 ah, thanks for so nicley fitting that into a nutshell.

 'granny this, 'granny that' lol. But good suggestion. Currently trying to get that strategy ingrained in my head as like a third/fourth option, or even earlier as you mentioned less risk for a beginner like myself. I guess as always have an attorney look it over. So these options basically come down to either a business partnership or loan agreement? 

or just any secondary loan. How does the lender benefit from a 2nd mortgage? A higher interest rate? Is that it? From what I understand with a subordinate mortgage there is no room for any collateral for any loan below the first. So.. a higher rate and credit requirement is what I should expect? 

A lender is offering 70% LTV at 8% interest rate. So it would be nice to cover some of that 30% down payment.

Or should I do a buy and hold deal 50/50 with a partner to split that down  payment and I was thinking taking advantage of the opportunity to get experience partnering with someone seems like a good person to work with?

what are common methods/strategies to cover the down payment? So far I've quickly got in the habit of bringing up seller financing and in the short of time I've been doing this and the shamefully little work I've done I'm surprised to report I've talked to a few at least open to the idea. But however I work it I'm wondering what my options could be with financing the down payment. 

Thanks. Yeah, I think hold that statement until I know exactly what all typical closing costs are around here. Well, I guess the point is for convenience and someone has to pay them so it works out that I pay them so long as I figure them into my calculations but I guess I'm worried I'll underestimate them or somehow something that doesn't belong in there or necessarily needs to be paid ends up in there or something.  Eh, I'll figure it out. When in doubt plead ignorance and apologize and/or cry. Lol