All Forum Posts by: Mike Smith

Hi,

I own a single family home rental property in Ohio that I live near.  The property next to it is going to be sold.  The price is approximately 128K.  I would like to purchase this property and have it paid off in 15 years.  I have about 30K that I can put down.  I can charge about 1K per month in rent.

The seller has not listed the property yet.

I would like to purchase this without using bank financing and paying 200K or whatever (with interest) and closing costs, etc. 

I don't really have any experience doing any deals so I'm not really sure what kind of offer/terms I could propose to the seller that would make it worth his while.

Does anyone have any ideas/recommendations?

Thanks in advance!

Hi,

I have three rental properties and my home. Pretty much fell into being a landlord (bought a house to live in, friend was selling his FSBO it was nicer I bought that and moved in, repeat a couple more times).

Given that I'm not a "dealer" of real estate - never really did anything besides smartly shop for personal mortgages and refi when appropriate. 

I do want to purchase one more rental and a co-worker has told me that they have a rental they want to get rid of.  Here is what I know: 

Zillow values it at 36K; 

Zillow recent neighborhood sale amounts validate the 36K. 

The place is in good shape.

They have a first mortgage on the property for about 88K.

They have a second for about 11K.

They were charging $700 per month in rent ( tenant just moved out).

They are planning on contacting a Realtor to sell the place.

They seem motivated to sell - fed up with it - want it out of their hair.  Obviously very upside down.  

I'm certainly not going to assume any mortgages or do anything where I'm paying more than the 36K + or - so my question is does anyone have any creative ideas on what type of proposal I could bring them besides I'll pay you 36K?   Maybe there isn't anything else - just curious for some input.  As I said I haven't really done any deals.

I have a couple goals... 1) want income 2) want it paid off as soon as possible

Thanks

FYI, I previously stated that Navy Federal Credit Union (NFCU) and Pentagon Federal Credit Union (PFCU) have investment property HELOC products which is correct. Although you must become a credit union member at these institutions to be eligible. NFCU membership is only available to those in or retired from the military or having family in or retried from the military. PFCU membership is a little more open... Make a one-time donation to a military approved charity, donate blood, etc. Contact them directly for more information.

Second FYI, I contacted Middlefield Bank out of Dublin.  I had a conversation with a couple associates in the residential and commercial lending department.  They expressed that they have flexibility to do a lot of different deals if the numbers work and they sounded eager (unfortunately no investment property HELOCs though).

FYI, I contacted all of the companies in the posts above asking if they have a HELOC product offering for single home investment property in Ohio when they are not the first mortgage holder.

Navy Federal Credit Union has a product.

Pentagon Federal Credit Union (PefFed) has a product.

Thanks for the help!

Hi, I have an investment property with about 50% equity in it. I am interested in leveraging the equity to do some more real estate investing. I have approached a few banks (including the current mortgage holder) and a few credit unions about obtaining a HELOC on this property. I have been repeatedly told things like: 1) we don't do HELOCs if we are in second lien position behind the primary mortgage holder 2) we only do HOLs, 3) Etc. I have checked with the primary mortgage holder and they do not offer HELOCs.

Does anyone know of any lenders that will do a HELOC in this situation?

Or does anyone have any other ideas on how to leverage this equity?

Note: I'm not much interested in the home equity loan type of offer as I'm not sure when I would pull the trigger on a another real estate transaction (real estate is the side job).

Thanks in advance.