All Forum Posts by: Justin Wilcox

That is fine, I just don't want to pay the 8% and need the 25% appreciation when I go to re fiance it so I can get it down to a lower rate.... So I suppose that I will have to try to really get it at a discount in order for that to work...

There is a property that I am interested in that I can get financing through a friend for 8% and he can pay cash for the property. When going to re finance out of my loan with him, what will a bank want to see or do? I understand that they will want a 75% LTV. So if that is the case, do I get the property for $200,000 now and then ensure that it will appraise for $250k when the 6 month window is up? The comps in the area say that it will appraise based off the fact that it has a mother in law suite and has been renovated. And the one I bought a year ago which is a very similar layout, size and location appraised for $275k.

I just want to make sure I am understanding this correctly! Thank you. 

AZ is a tough market right now in my opinion. A friend is doing higher end flips (buying for 425 - 500k range and selling for 675+) and he has been waiting 1-5 months before finding good deals. As a buy and hold investor (185k - 250k) I have been finding 2% deals about once every 3 months. It is tough out here. I am sure there are better places to invest but there are always deals. Just depends on how long you are willing to wait. Good luck!

See post above, still figuring out the quote tool in this forum..

@Chris Mason

 Freddie's max is actually 6, Fannie is at 10. Per borrower. Four is just where lenders start having more overlays.
  

For a total of 16 per person? Or 6 and 10 or.. their personal limit on that person to write a loan for them? 

You have been so much help, thank you! 

@Chris Mason  How do you put 10 in your name and than your spouses while she is unemployed? 

Isn't the max with Freddie 4 and Fannie 10? 

Get an electric key pad deadbolt w/out a keyway... Problem solved. Batteries could go dead but if you are responsible you won't have an issue. I've got one on all my properties and my tenants love them and so do I. 

I would imagine that someone probably has bought the tax lean on it? Good work on the due diligence with it by the way! That's awesome. I for sure would reach out to the family members and let them know that you came across the property and inquire about what they are looking or wanting to do with the property. Good luck!

There are 2% deals out there, we just have to find them. And that is a huge part of doing ANYTHING with REI.

Get creative, search the forums on how people find these types of deals and check out the BP podcasts. They are a wealth of knowledge and will help you source deals that will work for your style of investing. 

While I don't know much about the commercial space, generally speaking for a re fi they will want you to sit on/own the property for at least six months if it isn't traditional lending with SFR properties. Perhaps the stipulations would be different with commercial. If you pulled out the HELOC would that be enough to do a hard money loan? Most of the time they want 20% down or more and the rates gouge the deal pretty hard.

If the #s work with renting it out and covering the cost on the hard money and HELOC and you have the cash to get the property to a state where you can rent it, i would say it is worth the risk. Being your first BRRR property, estimating the numbers may be more difficult than originally planned.... Overall the deal seems a little more risky than I would be willing to do for my first investment especially when it comes to the remodel and market rents....

If the #s work, and you are sure you can get someone in there... Get them using the 2% rule on the property.... Do it.