All Forum Posts by: Klyde Waggsdale

I found a house that I might want to try and get under contract and then wholesale. About how long do I have to find a buyer from when I get the house under contract to when I the buyer is going to want me to close? I want to make sure that I have ample time to try and find a buyer. If I don't find a buyer I will just give up my earnest money and walk. Thanks for the help!

Thanks for all the amazing info. You guys are awesome. I'll keep you all posted on my progress.

Uwe,

The hard money lender is a close family friend so he is helping me out. Pretty sweet huh?

It would be a single family residence. What is the usual "seasoning" on a single family loan before you refinance?

Good catch! Thanks.

Thanks guys!

I am looking into purchasing a foreclosure to use as a rental unit, but cannot get an investment loan from a bank.

I have a hard money lender that is willing to lend me the money to purchase and rehab the house.

Here is the strategy with made up numbers:

1. Foreclosure listing price 80k. Home's value once fixed up 100k

2. Purchase the home at 60k with hard money lender. Include rehab costs of 10k in hard money loan. Total hard money loan of 70k at 15%.

3. Rehab home bringing value up to 100k

4. Refinance 100k property with traditional mortgage at 80% LTV (80k)

5. Payback hard money lender 70k principle plus 6 months interest of 5,250 for a total of 75k (rounded)

6. Now I have a home worth 100k with 25k of equity in it that should cash flow.

7. Find tenants

Please let me know if you see any flaws in my strategy. Thanks. :D

Has the government laid out the specifics for streamlining the short sale process through the "Making Home Affordable" program? This website says that they have all the paperwork and guidelines. I am very interested in looking into this training program but want to make sure I'm not getting tricked into buying something that is bogus. Let me know what you guys think! Thanks.

http://www.centerforassetpreservation.com/center-for-asset-preservation/agent_training.html

:D

Wow! Scott thanks for the info. Its funny because the home prices that you used were VERY close to the deal that I am looking at. A couple question for you concerning hard money lending...

What are some examples of terms for a hard money loan?

At what point in time do you convert your hard money loan into a traditional loan, and what is that process like?

Thanks!!!

Thanks for your quick response!!!

So I would most likely need to form an limited partnership with my friend, have him put money into the lp, and then apply for the loan through the lp.

Would that be a good way to go about it?

Why would having a partnership make getting the loan trickier?

I have a friend that is willing to lend me money for a down payment for my first investment property. My strategy is to buy a house through a short sale, rent it out for two years, then sell the house. I have no idea what to expect as far as the financing goes. My main questions (for now) are...

should I use a mortgage broker to get the house financed or should I deal directly with a bank? If dealing directly with the bank who do I contact at the bank?

what kind of mortgage rates can I expect to get on an investment property?

what down payment percentage will likely be required?

Thanks for all your help! This community is an amazing tool for beginning investors.

Also, I am looking for a mentor to help me work through my first deal let me know if anyone is interested. Thanks again.

I tried again to add the "real estate deals and analyis" rss to my google reader but it still loads the rss for all of the forums. Let me know if I am doing something wrong. Thanks.

B