All Forum Posts by: Sal Loiacono

@Eric M. I would like to hold the property. I have already talked with the current renters I also know them and they are an older retired couple that wants to stay there the daughter lives in the neighborhood. I would only refinance to get out of a HML loan no cash out.

@Steve L. I gave him my back round because I wanted him to understand I know the banking industry very well. The HML industry is very new to me that is why I posted so I can gain knowledge and better understand what and what can not be done. I have cash to work with but understandably I am nervous to tap into hence the reason why I am even bothering going down this route and also gives me time to repair what needs repairing on my credit report. Thank you for your feedback!

@Eric M. The HML said that would be max he would lend out no terms were discussed. I do have 2 jobs, I do private care(2years) also I am a Property Manager (6 years).

Just to give you a little back round on myself. I worked at citizens bank for 3 years from a teller to a banker IV I moved up in my position all within the first 1.5years and then I moved onto another bank as Retail Business Developer Manager on the north shore area. Shortly after my 21st birthday I opened my 1st dollar store then by the time I was 23 I had 2 dollar stores and also had acquired a laundromat rebuild that business and sold it. I have also been a silent partner in a few small businesses.

As far as the refinancing goes I have talked with a few mortgage companies and I am working with a credit counselor to repair some things on my credit report they advised that over the next 12 months I should be able to get a mortgage.

@Ann Bellamy. I understand what is being said. The property is in Gloucester Ma. I have 2 great leads in the Chelsea Ma happening right now. I was miscalculating the 70% rule. I can get the renovation done on my own with out the extra money. I was re-contacted by a HML today he informed me the max he would loan on the property after receiving the property information would be at 210,000. My goal here is to get the property do some exterior renovations, it has poor curb appeal right now (compared to the comps) and then refinance the property. I really appreciated everyone's feed back I am a quick learner and after looking at the numbers I originally stated it sure would scare me off if I were the HML.

@Damon Armstrong thanks I will have to find the listing to attend. I have everything that the HML requested just didnt post all the info!

@Michael Lemieux we had chatted about him doing that but he is just to motivated to get out of being a home owner out of state. It is clear to me from chatting with him that he does not enjoy real estate! His motivation is my bargain! My plan is to refianance the property after renovation it should bring in about 500per month in passive income!

@Cal C. I have heard nightmare stories. I had made some phone calls about doing that then I was turned off when I heard the stories.

Hi everyone,

The seller of the property I am interested in called me back last night!! I am shocked! He took the house off the market and wants to me a deal!! Now I have been trying to locate HML and everyone thus far tells me I need to gain more experience. I have been a property manager for 7 years and along with owning an running 3 businesses since I was 21. I recently had to liquidate everything due to my divorce hence the past few month have been rough. I am now 29 have met hundreds of contractors on the north-shore and have people lined up to come in to give me estimates this weekend and early next week.

Here is the deal.

Property located on the north-shore

Market Value- $255,00

Purchase Price- $190,000

Loan Requested - 229,000

Renovation - 20,000

ARV-319,00(spoke with realtors about comps and value they said anywhere from 319-329 and the house is FHA approved and 2 homes in the same neighborhood sold above sale price at 347k)

Currently Rented- 1900 + tenant pays everything! taxes, water, sewer.

I have been approaching HML with these number and they all say its great but they want to see me build experience. How do I build that without being given a chance? Any advise on what avenue to take? The seller requested to close within 30-45 days....I have been reading the books done the math everything works out great I cant believe this owner doesn't want to put some work into this house to make the ARV it just amazes.

Hey everyone,

I have been looking all morning on BBB and the NARI for construction companies that cover the Cheslea Ma area and I have been finding that many of the accredited companies do no cover this area? Can anyone recommend any companies that I can get estimates from?

Thanks Everyone for the feed back!!!

Thanks Everyone this is all great information! I have been studying all the real-estate in my area and on the north-shore for about 8 years now. I currently have a few leads and have talked with the owners of these property that just want out. Ill share with you 1 leads so you have have a better understanding of what I am doing and would love feed back to help me better understand if what I am doing is correct or not.

The property I am currently interested in is located on the north-shore. The owner currently has the property listed for 260k..I made contact with him and we chatted about why he is selling and how fast he needs out. He stated that its currently a rental and takes in 1900 per month. His job has moved him closer to the Boston area and he really has no interest in being a landlord. Bingo for me! I found out he only owes about 190k on the property. I did my own evaluation on the property and found that homes in this neighborhood are selling for around 329-347k. I figured If I was able to get the property for under 200k and do about 25-33k in renovations changing the concept of the lay in the home and adding another bath room and having the roof done adding come curb appeal would bring this homes value to about 319-329k. I took it a step further with the landlords okay I contacted the tenants and we talked about the possible opportunities of them living there during a renovation and they said they would def love to stay and possibly buy the house in about 3 years when they are ready. They love the area have lived there for about 4 years now and both husband and wife are retired and don't really want to move because they have other family in the neighborhood.

Here is what I have worked out for numbers. After Reno Value would be around $319-329k. If I can get the property for 194,00+ 35,000 close for 229,000k. If I do the renovations while collecting the rent I would generate around 5390 per year in income plus after renovations I have would 90-100K in equity depending on the finishes. I figure the HML or private repayment would be about 1700-1800 per month. I have been chatting with 1 mentor and she tells investors do 3year deals then after that period I can either re-fiance the property under my company and hold it or sell it for the profits. I see the North-shore area as a hot market right now I grew up in these parts I know the area very well.

Any feed back would be great!! Thanks again to everyone who has commented!!