All Forum Posts by: Katherine Blazer

 Welcome to Knoxville!! 

When it comes to buying houses to wholesale, flip, or make rentals... it's all about connecting with people. Period. How you connect with people is up to you. You can door-knock, build a referral base (but you probably need the business first), send out mailers, do Google/Facebook ads, or use people like Nick and Lead Minning Pros. I know Nick personally and professionally, and he is a great gentleman. I will tell you two things to be true about him. He will answer your call if you call him, and he will shoot you straight. The more people you connect with and talk to, the more opportunities you have to make a deal happen. Each lead-generating process has its pros and cons; door-knocking takes a lot of time, and you may not be speaking with the owner of the house, but you get to talk to people face to face, and it is relatively cheap (you should have a flyer or packet). Mailing is easy, and you are leaving people with a postcard or letter they can keep (I have had people call me 9 months after they received a postcard), but it can get expensive. Texting currently is less costly and can be done relatively quickly with high open rates. I am sure Nick can provide you with all the stats. So I would think about how you like to communicate and start there. 

If he needs to make improvements to increase value, is one reason. He also may be looking to stabilize the property, ie move tenants in, and then refinance. Hard money normally can close more quickly than "regular" lenders. 

Hi Vimal, What type of property?

You may be able to use the downpayment for a fix and flip loan if you are buying a property that needs updating and renovation, and then you would be able to refinance it into a DSCR. Depending on what the numbers look like some of the funds allow you to pull equity out after a few months. which would hopefully allow you to put money back into your heloc. However they will cap you at 70-75% loan to value.

IMO- Building a relationship and speaking with them. Not all lenders are the same or have the same personality, similar to real estate agents. So make sure you find someone that you connect with and will help you reach your goals. 

You can. It would be delayed financing. I have not heard of any banks doing 95% of purchase on delayed financing. Most that I work with are 80% of the purchase on dscr or 90% plus full construction on a renovation. Each will obviously need to still need the math to work. 

I have a 15% down on 30 year but its long term rentals. For STR its 20% down on 30 year year.

 Ok. I would try to do 80% purchase loans on both.

So 70k*80% = 56k loan amount 14k down payment + you will also have closing costs
then 120k*80 = 96k loan amount and 24k down payment + your closing costs 
So you will have about 32k - closing cost and loan costs for an additional investment

It's a great plan. Normally cash-out refinances are capped at 75% and of course, they will need to cash flow positively with principle, interest, taxes, and insurance. You will also want to confirm the loan and asset values minimus. Some banks really like $100,000 loan amounts. And it sounds like you are really looking for delayed financing. 

So your numbers may be a little off but it is doable. Where is the original $70,000 coming from?

$70,000 * 75% = 52,500. You could then do the $24,000 down on the next one, but you would not need to do the refinance. Your original loan amount would be $96,000. so you would have around $42,000 of the original $70,000 in down payments. You will also have closing costs.