All Forum Posts by: Michael Randle

@Jim Freeman, Thank you for the input. I am trying to stick to that policy of make money when I buy not when I sell. A little more re-assured since it is taking people a couple months per home right now.

@Gabrial Carter Good to see a fellow investor looking for a second house also. Good luck to you also!

@Bill S. I have not been driving for dollars or done direct mailing. Any suggestions on where to start, procedure wise?

@Matt M. I am trying to stick with Buy and Holds also myself. Trying to find a flip for a first time flipper in this market would be brutal. If I even wanted to go down that path. Do you have a wholesaler you work with or are you finding your own deals?

Hello Fellow investors.

I am running into some issues getting a second property and I am hoping for some guidance from the locals with feet on the ground doing deals. I have been looking at houses with an agent off the MLS for the last 2-3 months. About 5-10 every weekend, depending on availability, and making at least 1-2 offers a week. I have not been able to close on a property.

My budget is around $300k and mainly looking in the Aurora area, inside the freeway loop. All the properties are going for generally above asking. And running the numbers they do not work, so I would be into playing the appreciation game which I am not a big fan of right at this time.

So my question is to people actually closing on properties and deals. Where are you finding the leads or what seems to be the winning strategy right now.

I am looking for the $300k and less. SFR as a buy and hold. I hope to either house hack, BRRR or pure rental. I hope to say in the Aurora Freeway Loop. This isn't my primary job and I use real estate to supplement my other investments. I am wanting to find something that cash-flows $200 a month since I will be self managing.

Are my goals un-reasonable in this current market or am I completely missing something while I am out looking for properties.

Any help, advise, or directions as to where I might find my answers is greatly appreciated.

Seth

Hello!

I was hoping to get some insight on where everyone goes to acquire starting capital for a foreclosure sale. My understanding that all the funds need to be paid in full within 24 hours of the auction and although I can see how people would have a few hundred thousand laying around in the back. I am assuming the vast majority of us do not.

Are people using HML, 401K loans, traditional banks, family members, souls from Lucifer?

Thanks for your help!

I am spit balling an idea and I wanted to run it by you all.

Can I use a HML for a foreclosure and then refi into a conventional/VA loan after X months?

Or would the HML vetting process kill the idea of using HML to quickly close on a property and then refi out on more traditional terms?

Thanks!

Thank you all for the answers. I know know I am on the right path and will look at the next step.

Thank you all for the information. Looks like I have what I need to take the next step in the process.

Hello BP, I want to run a scenario by everyone too see if I grasping the fundamentals of Hard Money Lending. My understanding is that HML can be ~70% LTV and can be used for improvements and repairs. Let's say I find a house for 10k. It needs 60k of work due to fire damage. Neighborhood dictates market value of 100k for comparable houses. If I bring the numbers and written quotes from qualified GC to a HML could I get a loan for 70k based on after repair market value of the house and the neighborhood? I kind of want to stay away from the question of rehabilitation of a fire damaged home and want to focus on the theory of my idea and if it would work in the real world. Thanks!

Hello BP, I want to run a scenario by everyone too see if I grasping the fundamentals of Hard Money Lending. My understanding is that HML can be ~70% LTV and can be used for improvements and repairs. Let's say I find a house for 10k. It needs 60k of work due to fire damage. Neighborhood dictates market value of 100k for comparable houses. If I bring the numbers and written quotes from qualified GC to a HML could I get a loan for 70k based on after repair market value of the house and the neighborhood? I kind of want to stay away from the question of rehabilitation of a fire damaged home and want to focus on the theory of my idea and if it would work in the real world. Thanks!

I do not see anything wrong with that. He is putting down a deposit that you request to hold onto and in return you hold the apartment for him. Then he asks to pay rent on essentially the first day it is due, when he moves in. If you make an offer on the house, and the seller requires erest money (deposit) and one month mortgage (rent) before you close on the property would you take the deal? Personally that seems more fishy to me then someone willing to put a down payment to hold the apartment and secure it from future damages and then the rent the first day he moves in. You are asking for two large payments and all you give is a promise in return. Doesn't sound like a fair trade to me. Tell him you will accept the deposit but if he backs out you keep 50% or something like that.

Justin Cooper , shoot me a PM. I would like contact information and possibly run deals by you in the future. Always good to have a HML on hand for those flips.