All Forum Posts by: Nicholas L.

Hi @Ivan Palacios I am not sure what he means by "investor deal." If the house is not in good shape, maybe he means he wants an investor to buy it since it would not be suitable for a family to live in. Either way, it doesn't matter - you should still use a real estate agent, have your financing lined up, get an inspection, use a good title company, etc. and cover all your bases regardless of what his intention is, or whether or not he's using an agent. There is no separate process for an "investor deal" - the purchase generally works the same way whether an investor or a family or an owner occupier or an LLC is buying the house.

@Isaac Bazek

• -Buy, Rehab, Rent, Refinance, Repeat by David Greene (RE)
  -Real Estate Investing Gone Bad by Phil Pustejovsky (RE)
• -Investing in Real Estate by Gary Eldred (RE)
• -Quit Like a Millionaire by Kristy Shen (FI)
  
• -Playing with FIRE by Scott Rieckens (FI)
• -I Will Teach You to be Rich by Ramit Sethi (FI)
  -The One Thing by Gary Keller (Inspiration)
  
• -Am I Being Too Subtle by Sam Zell (Bio)
  
• -Shoe Dog by Phil Knight (Bio)
• -The Big Short by Michael Lewis (Business)
• -Liar's Poker by Michael Lewis (Business)

Hi @DJ Henderson if you're truly purchasing with all cash then you're not adding any debt to your personal balance sheet, but you're also changing the mix of assets you hold (you would have a property and less cash reserves, vs. more cash and no property.)  You'd want to ask your lender if there would be any impact and if they're confident you have the cash to close on the purchase of your primary.  

I bought a rental property prior to buying my primary using a conventional mortgage, but I had reached out to a lender beforehand to make sure it didn't jeopardize the purchase of the primary.

Hi @Andrew Enriquez if 15% is "quite a bit of money," how expensive is this deal?  And does it really pencil if you're trying to purchase it with basically $0 of your own cash?  I'm assuming you're going to try to refinance to exit the hard money loan - are you confident in your numbers?

Hi @Nicolas Mitchell it depends on what metric you are using. If you're going to BRRRR a property, you need to look at the ARV to understand how much cash you might be able to pull out after the refi. The goal is 100%, which may or may not be realistic. Pulling out 100% of your cash means you were able to substantially increase the value via the rehab. The down payment (if you're financing the purchase) is important but only represents part of your cash outlay. You'll also have closing costs, the rehab, holding costs, refi costs, etc. These are all cash outlays. It's difficult to BRRRR with conventional financing for multiple reasons - you will pay financing costs twice; you might not be able to get a mortgage on the property; etc.

Hi @Account Closed are you able to share any additional information about the specifics of some deals you're looking at? Tax and HOA aren't the only expenses you'll have - so $10K divided by $100K isn't really the right way to analyze a deal. Say you're looking at a property that will rent for $1000 a month that you could purchase for $100K. It MAY cash flow - but you would need to do further analysis, especially with an HOA payment. That's a big wild card.

Hi @Austin Wheat are you working with lenders that specialize in VA loans? There are some here on BP, see if you can find some relevant threads. With respect to co-signing - that is an option, just remember the co-signer stays on the mortgage until it's re-financed or paid off, so the debt counts against both your and their DTI for the life of the loan.

Hi @Bud Evans congrats.  What neighborhood?  Flip or rental?

Hi @Bob Veitch if you haven't already create a Credit Karma account, it's a good way to generally monitor your credit from month to month

Hi @Heval O. I'm supportive of renting in the short term because there are no entry or exit costs like there are for purchases and sales.  You just pay rent - it's a great deal (again, in the short term) because of the flexibility.

With respect to pulling equity out, it's definitely worth considering.  See what kind of rates you'd get.