All Forum Posts by: Norman T Eng

I'm in the process right now. This is a zombie house with water damage to the foundation, etc. , one room that is blocked off as the floor may fall through, etc. I'm going to hire a structural engineer because of the degree of damage on this house. If it's cosmetic, you probably don't need one.

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Originally posted by @Tony Robinson:

Originally posted by @Norman T Eng:

Awesome job! Thanks for laying it out, but I have a couple of questions. Was the cash out refinance option from your primary residence and at a rate cheaper than 4.75%? Also, you said that the 30 year conventional was more expensive at that moment, but escrow, property tax, and insurance would eventually have to be paid, correct or was your cash out refi cover the entire purchase? thanks!!

Hi Tony! You said you can do a cash out refinance after the 6 month interest only loan period was finished. I wasn't sure how you would be able to do that since you didn't have equity in the property. I'm new at this game and am trying to learn all the math and maneuvers. Again, congrats and I'm pumped for you!

Thanks Norman! I'm a little confused about the first part of your question. My primary residence wasn't involved in this deal at all. My only point on the refinance was that I was only paying interest initially. My insurance and taxes still would've been due, but it wasn't automatically bundled with my mortgage payment. Once I refi'd, my payment now included PITI so the reduction in interest was offset by the inclusion of principal, taxes, and insurance.

I hope that answered your questions!

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Hello all,

I'm a total noob and have a question. I saw a 3b 1 bath and was wondering if converting 1 small bedroom to a bathroom would be better than keeping it 3/1. Hope everybody is staying safe!

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Originally posted by @Kiera Underwood:

@Norman T Eng if the down payment is a concern I'd find a good deal in a market that's more approachable from a price point perspective. In OKC you can get cash flowing deals on 60k properties.. so you're looking at 12k down and 5k in closing costs and prepaids. A bit easier to swallow!

Thank you. unfortunately here in Atl, cash flowing deals are a usually around 150+ so it's a bigger chunk. Thank you for your help!

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Originally posted by @Jacob Sampson:

Originally posted by @Norman T Eng:

Originally posted by @Jacob Sampson:

Originally posted by @Norman T Eng:

Originally posted by @Jacob Sampson:

A good W2 income that you live way below. A lack of capital can make even the best deals a nightmare.

Hi Jacob,

This would be an investment property. I already have a home. Sorry if there was any confusion.

I understood. I was stating that focusing on building a great W2 income and then saving as much of it as you can (for the down payment) is the best way to prepare yourself to invest.

So what are your thoughts on hard money, heloc, 401k, or finding partners? Tying up 75k of my own money can be difficult. Thanks!

I'm a pretty conservative guy. I'm sure many investors would have different opinions, but here is my take.

1. Hard money is too expensive.

2. HELOC is fine. I prefer it for flips vs buy and hold because you get your money back quicker and can get the HELOC paid off.

3. Don't touch your 401k remember the market has 100s of years of history showing it can turn a positive return. You don't have any history of showing a positive return. Heck I only have 15 years of history which is nothing relative to the market. Leave your money in the 401k. If real estate doesn't work out youa re going to want that.

4. Partners are like marriage, most end badly. You can do it but be careful and be picky. Of my 5 different partnerships I have been in, only one has remained intact.

The more creative you have to get the more risk you are taking on. Simple is better. Save up the 20% (or use HELOC) and get a boring old bank loan.

Thanks for the response! I appreciate your feedback.

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Originally posted by @Derek Harris:

Originally posted by @Norman T Eng:

Hello All,

I'm looking at my first purchase and based on my analysis it is a good deal. I'm a newbie at this so I'm trying to figure out the best strategy. However, the down payment will be 75k. What are the best ways to get the funding? Rich friends? 401k?

Norman, if it is a great deal then the funding will be the easier part. If you don't have enough for the DP, consider partnering with someone else or wholesaling the deal. There are many ways to get creative with financing. I suggest reading The Book on Investing in Real Estate with No (and Low) Money Down by Brandon Turner.

Thanks for the suggestion! I just bought the book! Do you leverage heavily for your DP or do you prefer your own cash?

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All Forum Posts by: Norman T Eng

Norman T Eng has started 9 posts and replied 20 times.

Post: General Contractor in Atlanta for a Flip

Post: General Contractor for flip in ATL

Post: General Contractor for flip in ATL

Post: When should you bring in a designer / architect on your flip?

Post: Completed My First BRRRR (With $0 Down) ! + Photos & Details

Post: Completed My First BRRRR (With $0 Down) ! + Photos & Details

Post: bedroom vs. bathroom

Post: Funding for my first purchase?

Post: Funding for my first purchase?

Post: Funding for my first purchase?