Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Mike B.

Mike B. has started 5 posts and replied 101 times.

Post: How do you describe your Value Added

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Bryan, if you are solely going to be wholesaling the property then you should either already have Qualified cash buyers buyer lined up and interested in the type of property you plan to get under contract, and/or, have a clause in your contract which you will talk to sellers about that allows you to give the property back to them if you dont sell your contract.

Getting a property under contract at prices that most investors would pay (discounted 35% or more) will be extremely challenging.  Most people want the most money possible for their property, even if they have to wait a few months.

I wouldn't look at this as if you're providing a "service" per say to the seller - rather a solution, and in a nutshell, here's your solution:

You (or a partner or another investor in your network) can buy their house right now and Relieve the seller of the Problem.  That's it.  You Buy Houses Directly, Fast For Cash.
   When a seller NEEDS/MUST/HAVE TO sell their property Right Away (because of whatever super distressed situation they have), you can buy their house Fast (20 Days or Less), All Cash, Any Condition, No Hassles, No Commission, No Cleaning, No Repairs, and you even Pay The Sellers Closing Costs, you handle all the paperwork to get things started and then everything is processed through escrow/title/attorney.  When you buy their property, there is no need to wait for bank financing, no appraisals or home warranties or seller credits, no listings and showings and negotiating various offers.  By selling the house to you Right Now with all these Benefits, they will sell for a discounted price in order to get rid of the property and move on with some cash in their pocket.  When selling a house traditionally, they will have 10% of their sells price eaten up in commissions, closing costs and holding anyway, and have higher taxes to pay which reduces profits. Yous can relieve their stress, worry, headaches, hassles, and just get this property off their hands at a fair price for the current state of the property and their situation.

Personally, I'm not a big fan of sales and trying to convince a seller that wholesaling is their end-all-be-all only solution.  I'd present it very friendly and matter-of-fact, and if you're able, present other solutions as well, including a lease option or seller carry type scenario.

If you have a Truly Motivated Seller, all this stuff will make sense to them because they Really Need to sell their house right now, otherwise, they'll probably decline and hold out for more money by listing.  Wholesaling will work best when that Must/Have To urgency exists with a property, otherwise probably not.  Either way - always be polite, understanding, and Honest.

Post: House hacking using va loan.

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Yeah definitely. if you're going to live in one of the units for at least a yr, it should fly for the VA loan. Good plan

Post: House hacking using va loan.

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

VA loans are for owner-occupied properties and have several regulations. It's a good idea but just check out all the details a bit further.

Post: House hacking using va loan.

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

http://www.benefits.va.gov/HOMELOANS/

The VA loan is generally Not a 0% down loan, that's only for qualified disable veterans.

Post: What would you do with 100k?

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

It really all depends on your strategy and market Joshua.  For example, $100k here in Los Angeles won't do much good.  It could be used as a down payment, maybe pay for some rehab work, etc, but I'd be hard pressed to be able to purchase a property for that amount.  In other parts of the country, you could fully purchase 2 or more properties all cash, maybe even including some repairs.  Consider how soon you need/want your money back as well as how the market is performing for returns in the area you're looking to invest in.  You'll also have to account for any marketing costs, holding costs, permits, closing costs, taxes, insurance, etc, etc...

You might consider diversifying your investment by let's say just for example's sake:

- Buy a $20k house with $10k repairs, and re-sell for $45k
- Buy a turn-key rental for $40k for cash-flow and appreciation
- Buy a private mortgage note for a property valued at $50k at a discount for $25 and receive cash flow payments and appreciation
- Buy a $100k house on a lease option/purchase for a 3 yr term with $2k down, then sell it on a lease option for a 2 yr term, receiving $5k down and future sales price of $115k

Your Options Are Endless

Post: New to Bigger Pockets!

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Hi Kenneth - 

VA Loans are intended for Veteran Owner Occupied properties and have several regulations. You can read more of the details here --

http://www.benefits.va.gov/HOMELOANS/

The VA loan is generally Not a 0% down loan, that's only for qualified disable veterans.

Good luck out there.  

Post: Using TSP to help with down payment

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Just a quick note Hill- VA Loans are intended for Veteran Owner Occupied properties and have several regulations. You can read more of the details here --

http://www.benefits.va.gov/HOMELOANS/

Post: FIRST INVESTMENT

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Brooke - Both FHA and VA loans are lower down payment options, but also have certain requirements to be met, so you'll need to research it further.

VA Loans are intended for Veteran Owner Occupied properties and have several regulations. You can read more of the details here --

http://www.benefits.va.gov/HOMELOANS/

The VA loan is generally Not a 0% down loan, that's only for qualified disable veterans.

Post: House hacking with VA loan

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Sounds like a good idea. You can also get into a place with your VA loan live there for at least a year and then if you decide to move , you could keep that property as a rental . Then if you have any remaining entitlement eligibility, you could use that to buy your next place that you would live in.

You might find it easier and possibly more profitable however, to just buy a duplex or something similar assuming it meets current VA criteria, and then you'll be set.

Post: Using TSP to help with down payment

Mike B.Posted
  • Investor
  • Los Angeles, CA
  • Posts 176
  • Votes 93

Definitely restructure your contributions/allocations. After that long with so much invested you should have $100k or more in the account by now...! Anyway, TSP Loan is not a bad option. There is a tiny $50 fee.

Make sure you read up on the regulations, as I believe the loan has to be for an owner occupied residence and there are other certain stipulations involved...

Best part(s) of the TSP Loan is when you pay back the loan with minimal interest (like 2-4%) you are actually paying back your own TSP retirement account and there is no additional loan added to your credit report. If you get all the paperwork processed correctly, you can have funds in your account in less than 2 weeks.