All Forum Posts by: Manmath D.

My primary residence is now occupied by tenants back in WV. I'm currently living in WA state. I'm thinking of getting HELOC on that property. I've approached local credit union here in WA and Wells Fargo for HELOC but it didn't work. What other institutions do you recommend I approach?

Approaching my friend to lend money on a deal. Couple weeks ago I started listening to BP money podcast. Very first podcast I listened to Mr money mustache. I liked his message and started reading his blog. Within 2 weeks I paid down my debt of $40k. With income coming in from my 2 properties, I've just a little bit of cash flow and no more housing expense. I bought a duplex 6 months ago, live in one unit and other is rented out. I also have one SFR in WV. Quite frankly I was looking forward to just living frugal and saving as much as possible from here on. I wasn't thinking of going out and finding a deal yet. I make $10k a month and don't have any debt. I'm saving 65% of my income. I also have $300k in retirement account that I plan to move into self directed IRA.

I'm still educating my self as much as possible everyday on RE business. So I get a text 2 nights ago from my agent that he just listed a REO property. I'll be putting down 70% of the listed price. I've a friend who has surplus money he's wanting to invest. He has mentioned before he would invest with me if I have a right deal. I've never done a flip before but I'll be working with a contractor who works for a very successful flipper in my area. My initial plan was to save for a year and approach this flipper with capital and see if she is interested to do a deal with me or invest in small(15-20 units) multi family. But now this deal shows up and I'm really interested in pursuing it. I may or may not get this deal since there are other investors looking at it too. But this got me thinking how do I have an access to private money within mins when I come across a deal.

Since I’ve never borrowed private money before, how do I approach him ? What are the things we need to put in place to start this process and structure a lending contract ? How do I put all this together?

This is very helpful. I live in WA and have one single property for rent in WV. For now I self manage and collect rent. All this info is very good and I’m taking down some notes.

@Anthony Gayden congratulations! Glad you were able to pull out of this. I’ve lost close to $600k so far in last 10 yrs due to lifestyle issues. I personally didn’t know much about finances. It’s only after I came across BP in last 2 yrs and BP Money podacast and Mr Money mustache 2 weeks ago I’ve started to scrutinize my personal finances.

With all the money I wasted, I could have bought decent size apartment and living financially independent life by now. 😭

Awesome. Congratulations on your success. Just this morning I woke up and was getting ready to goto work. I was calculating in my head how many units do I need to be financially independent. That number came out to be 50 units if I’m able to find a deal that could generate $200/unit. I make $10k a month.

Just bought a duplex last year. Finally I do not have any housing expense . Its not a slam dunk deal but pays for my mortgage and few expenses. After listening to my first BP money podcast 2 weeks ago, I realized how important it is to first clean up personal finances before going out for investment. Also realized I was throwing away $2500 every month in lifestyle. Within2 weeks after listening to @Scott Trench talking about Mr money mustache, I started reading MMM and made few changes in my life. I put into action what MMM recommended and will be debt free in 2 weeks. Also with drastic lifestyle change recommended by MMM I’ll be able to live on 35% of my take home salary. If I keep pushing through I should have enough capital for a good multiplex deal in a year or two.

Again congratulations on your huge success 👍

I'm glad to come across this post. I have one rental in WV which was my primary residence 3 yrs ago. But had to relocate and put on rent. I'm now thinking how do I protect myself by forming LLC considering it still has mortgage. If I were to put it under LLC, wouldn't bank come after me for due on sale clause ?

I've a property in WV and it is financed through suntrust. 3 yrs ago I reached out to Suntrust bank to open HELOC and was told they wouldn't do it. To get HELOC do you have to find a bank from the state ur property is located or can any national bank do it ?

I moved to WA 2 yrs ago and I just bought a duplex 6 months ago. I'm looking at getting a HELOC on WV property soon.

I just read the flipping book (Updated version). And I'm going second time over. 2nd chapter talks about different financing options, advantages and disadvantages of each strategy. It will give you general idea of each financing strategy. Point 5 in that chapter talks on HML , benefits and drawbacks on page 42/43. There's also a column in that chapter simplifying different strategies and how they work.

Congratulations!! on early start 👍 @Shannon M.P. Lewis.

I’m in the same boat. Have 50k sitting in the bank. In last month I’ve read J Scott’s “ flipping houses” and few other books. I’ve met several people in local market who have or are doing flips. Just looking out for a rehab property. Today I’m also going to get a list from list source for absentee landlords in my town. Anyone here have any idea how much listsource charges per lead ? There are also other flippers doing flips in my area. I’m trying to reach out to them if they are interested to partner with me. I’m also thinking of proposing that once I learn the trade, I won’t compete with them but will partner on several deals for few years.

Few days ago I met a flipper/broker for lunch and asked him if he was interested to partner with a newbie like me. He has done several deals in the past. He is not flipping currently but is willing if I bring the right deal to him. So I’m working on getting my first deal. I also read a blog by Perry Farella where he talks about home investor style loan for fix/flip. I’m going to reach out to him and see if I qualify for the loan. I would like to get my fix money in order while I’m looking for a property.