All Forum Posts by: Brian Anderson

@Bill Gulley The labor is all voluntary, I wouldn't engage in something like that! A lot of the guys just happen to like doing it.

If I only need a total of 110k for this setup, and the ARV is 250k, I wont have to make a loan for 175k to meet the 70% ARV right? I would only want the loan to be for 110k..

@Bill Gulley Haha, thats what I thought. Above you said "subject to financing" so I was wondering what you meant.

Side bar: What do you think about me signing up for a site such as Private Money Goldmine to find private lenders? I am able to get very good labor for extremely cheap because I work with a long term live-in rehabilitation program sponsored by the Baltimore city jail system and church. Many of the people in the program are in their 30's-50's some having extensive experience in remodeling, led by the program directors who are experts. I am good friends with the director so once I told him my investment plans he came up with the idea to do all the labor for only a small portion above cost as it was a win-win for me and his program that has been around 50 yrs. For instance these 2 properties I am trying to obtain are 4 levels each and being turned into 6 apartments, office and an industrial kitchen all for 70-80k. The guys love doing work as a part of their therapy, making a few bucks and staying occupied and away from drugs/alcohol/crime. He said they can build houses from the ground up, its just a matter of finding what I want to do. Also in the next few months I will be running my psychiatric practice and able to save 10k a month so I am looking to invest heavily by way of cash and loans backed by capital/property. Any ideas?

@Bill Gulley How do I do subject-to financing if the properties are already paid for? I don't believe the owner has a current loan on them. I don't think I am understanding what you meant by that. Sorry I am a newb :/

@Steve Babiak When you say "a portfolio", what are you referring to? An investment group? Any idea where I should look? I completely agree regarding the tenants and thankfully they have been in business for years and are very profitable.

I am speaking to my father about loaning me the money at 12% interest but at that rate I would be trying to pay it off ASAP.

@Jon Holdman Doing a refi for $175 would that basically mean I am paying off the 110k and putting 65k in my pocket? The only issue is that multiple years of history will not be possible since the properties need full rehab and have needed so for some time. Are you saying I will need to use hard money for quite some time? I didnt see your post before I replied to Bill, but your another person's opinion I highly respect. Aren't I lucky to have both of you reply :)

@Bill Gulley Great advice, thank you much! I am still figuring it all out. I didn't realize you need to get the bank loan set up prior. Does the aforementioned sound like a good deal to you? I have read many of your posts and highly respect your opinion.

Can someone explain how you go from a hard money loan to a conventional? I found 2 shells next door to each other that need complete rehab for $30k and 70-80k in repair. This property will be considered commercial real estate. I have a company willing to sign a 5yr lease at 4k a month before the start of repairs and purchasing the shells. I am shopping hard money now but looks like I should be able to get around 15% interest only 2/1 in my area. I see a lot of the posts say banks will loan 70% LTV. This property set should appraise for approx $250k. Does this mean I am able to borrow up to 175k? I will only need 110k (30k + 80kmax) to pay my hard money guy off. Does this mean I will get a loan from the bank for 110k at an investors interest rate with a potential for a possible 5yr ARM and shorter amortization? Any guidance would be very helpful

@Tim G. I am in the middle of a small storm regarding 203k. I have a contractor who does 203k's all the time and is charging about 26k and another licenced, insured contractor who will do the same job for 21k but never done a 203k before. Looking at all the requirements it looks daunting. I see your phone number on your website, would you mind if I reached out to you for a few mins?

Brian

@Raquel Thomas They are basically section 8 properties but supposedly a little better for landlords. I am still learning myself but no major differences from section 8 I believe.

@Nicole A. I friend requested you since I feel like maybe we can help one another in the future. Yes I completely agree, the county is much better. Have you used MBQ at all? My mentor has a few MBQ properties and has had nothing but good things to say. He too cautioned, "Screen your tenants well!"

@Nicole A. - I had considered renting out in dundalk because the cashflow is nice but how have your tenants been?