All Forum Posts by: Brant Richardson

Analyze using the terms you want and expect to be able to get. If you are looking to compare your cash flow to other investors cash flow this becomes a problem because there are some important variable thrown in there. Like Anish who wants to pay off the property in 10 years.

As far as 100% financing goes, you will only be able to do cash out refinances with four loans, so only your first 4 buy and holds (unless you get seller financing). If you can cash out 100% of your money and the property still cash flows over $100, you're doing pretty good.

I was doing three calculation. 80% financed traditional loan and pay cash for rehab, 80% financed renovation loan (rehab is financed), and 100% financed assuming a future cash out refinance. This helped me analyze my options, present and future.

Every time you make a mortgage payment some of the money is interest and some of it is principal (unless you have an interest only loan). The portion that is principal decreases the amount you owe on the loan and therefore increases your equity.

A renovation loan will let you finance 80% of the purchase and the rehab. You have to use a licensed contractor to do the work though.

Just to make sure... when you received your monthly check, the HOA fees had been taken out of it right? If so, then I would expect you to win the case.

Sounds like you have a formula that will work in your town. Set your parameters and don't stray from them. Keep making offers that work for you, let the seller know what works for you and offer again next month. If you have the reserves to "buy 10 more houses today" and "tenants are begging to get in" then you probably won't get yourself into too much trouble.

With a standard Homepath loan you also do not need to pay for an appraisal as one has already been done.

With a Homepath renovation loan you lose all the benefits as far as I can tell. The banks I have spoken with want to do their own appraisal (you pay for it) and they want 25% down.

The numbers say it is a good buy and hold. I would love those numbers where I invest. But everybody has a different idea of what level of finish a home needs to be brought up to before it is rent ready. Everybody has a different idea of what a good neighborhood is. Only somebody who knows Eastepointe knows how those numberes compare to others, rental demand, etc.

@k.mariepoe

These were straight home loans, 30 year fixed rate for an out of state investor. Not a HELOC, 2nd or car loan. The loans are in the low 40's. I made a lot of calls to smaller banks in the area I invest and only found one willing to go into the 40's and he was reluctant, with the understanding that most of my loans would be in the 50's.

@Rick Baimbridge

Wells Fargo gave me loans in the low 40's earlier this year. I'm not sure what their credit score requirements are.

Podcast 70&71 would be particularly interesting to a new wholesaler, check them out. Put me on your buyers list for that first deal that comes through.