All Forum Posts by: Ken Nyczaj

@Noe Arreola find a bank that will loan on the acquisition of the house and loan on the construction phase.

@Eddie Cumberbatch keep out there hustling and finding deals. Maybe flipping the contract to a local investor will allow you to build more of a personal relationship.

@Christian Fletcher no I don't. I think FHA does...? But I could be wrong. Your lender will know.

@Tia Wilson some local banks will do a renovation loan on top of the property loan. For ours we put 25% down on the purchase price and 20% down on the renovation and they call it a commercial construction loan, even though it is single family. The wording may be different but the loan likely works the same.

@Janelle K. put it under contract and give yourself some time, maybe 60-90 days. Try to work on building your network of a lender, title company, insurance, and those three will allow you to close if you're looking to get a loan. If it's cash, then a different story. Get a home inspection and pest inspection too. During your inspections take a contractor in to get you an estimated renovation budget.

Under contract

Send contract to bank and title company

Contractor walkthrough with inspections

Send bank your budget for renovation if using a construction reno loan on top of property loan

Make sure the numbers still work for the deal

Set up a definite closing date and talk to an insurance company as you'll likely have to pay insurance in full before closing.

@Gary L. search in submarkets for off market deals. I'm not sure if that makes sense in San Diego?

@Robert Sutton sorry to hear about the layoff. Maybe try and bring value to a few of your friends that are into real estate and partner on a deal. Whether it's money, networking, finding new deals etc. If you work for the wholesale company and get good at it, you could go off on your own and wholesale to your one friend of yours that flips.

@Justin K. you could use listsource to download a list of home owners that are out of state, high equity, old age, etc. Any possible reason for them to be a motivated seller, and then write them letters, send post cards, cold call them after you skip trace their name and address.

Or, a less expensive way is to drive around neighborhoods and knock on the door or write down the addresses and send them letters.

@Christian Fletcher If the rule allows you to move out after a year, I don't see it being a big deal whether you tell the lender or not. I just wasn't sure if it's one year or two years. Either way, the lender if they hold the note is getting paid... hopefully... whether you live there or not. Them helping you earn income and move to a new property to start all over may incentivize them to help you more.

@Tristen Livengood house hacking may be a great way to start. A lot of blog posts and forum posts and books on the subject. I helped a buddy of mine house hack a 3 unit in Maryland. Did an FHA loan with only 3.5% down and put an addendum in contract for seller help on closing costs. He got into the deal with around $10,000 and now lives for free and collects $500 on the plus side after all expenses. Compare that to $1500 rent, that's $2,000 a month now being put into your pocket, $24,000 a year, that's another investment property.