All Forum Posts by: Paul Ivanov

@Marcus Burleson I will give him a call. Thank you very much! I appreciate it.

@Brent Coombs we owe $220k on the house and current market value is $450k.

The banks we have reached out to have said that our DTI ratio is high and they won't count the rental income until we've seasoned for 2 years as property owners. So for now the rental is showing just debt. I was hoping there is another way around or a lender that does not need to see the 2 years.

Patience has been difficult but necessary part of my learning experience so far.

Thank you Lee Judd, yes I have but I am also wondering if they are seeing a high debt to income ratio. I will continue looking at other local banks and other lending options.

Hello BP,

We are excited to finally join the Bigger Pockets group of motivated Entrepreneurs! 

My wife and I are looking to cash out refinance our rental property in Richland, WA to further expand our rental portfolio. I am a GC in the Tri-Cities WA area and we currently invest in New build residential spec homes for sale and have been using private money. That being said, we would like to add rentals to our portfolio and take advantage of the low interest rates to unlock the equity. The home has been renting for 4 months now and has about $230,000 in equity. This is our first rental property so I can see why banks have told us to wait 2 years before we can cash out on an investment property being that we are new to this part.

So our question is, Are there other options to use this home to purchase future rental properties? If so, what are they? Any insight is helpful and much appreciated.

Thank you!

Investment Info:

Single-family residence wholesale investment.

Purchase price: $95,000
Cash invested: $2,000
Sale price: $123,000

Three weeks later, the property closed and we walked away with our original $2,000 earnest money plus the $28,000 profit from selling the contract.

Purchase Price: $95,000
Cash invested: $2,000
Sale Price: $123,000

At Closing:
Earnest Money Returned: $2,000

Profit: $28,000

Investment Info:

Single-family residence wholesale investment.

Purchase price: $95,000
Cash invested: $2,000
Sale price: $123,000

First wholesale that turned out to be quit the success!

We purchased this property from a gentlemen we had previously done some contracting work for at his personal home. It was used as personal storage at the time since he moved several years prior and lived a few minutes away. Looking to liquidate the property, he asked if I was interested before he listed it on the RMLS. With no experience and little cash, we decided to purchase it after inspecting the home. With only $2,000 in the account for the earnest money we agreed to a price of $95,000. This quickly forced us to get very creative! I had mentioned this deal to my brother who then referred me to an interested party willing to take on the contract at $123,000 one week into our initial purchase agreement.

Three weeks later, the property closed and we walked away with our original $2,000 earnest money plus the $28,000 profit from selling the contract.

Purchase Price: $95,000
Cash invested: $2,000
Sale Price: $123,000

At Closing:
Earnest Money Returned: $2,000

Profit: $28,000

What made you interested in investing in this type of deal?

Honestly it happed by accident, I declined the original offer 3 times until he mentioned that he was going to list it with an agent. Although I am very interested in doing a buy and hold for future deals to build our rental portfolio.

How did you find this deal and how did you negotiate it?

One of our customers we had done some contracting work at his personal home. We offered $90,000 and his countered with $95,000.

How did you finance this deal?

We put $2,000 for earnest money which we got back at closing after selling the contract to a third party.

How did you add value to the deal?

None, SOLD AS IS

What was the outcome?

A huge learning curve and confidence boost plus $28,000 profit.

Lessons learned? Challenges?

Lessons learned:
1) Writing up a purchase agreement
2) Writing up An Assignment agreement

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

Investment Info:

Single-family residence wholesale investment.

Purchase price: $95,000
Cash invested: $2,000
Sale price: $123,000

First wholesale that turned out to be quit the success!

We purchased this property from a gentlemen we had previously done some contracting work for at his personal home. It was used as personal storage at the time since he moved several years prior and lived a few minutes away. Looking to liquidate the property, he asked if I was interested before he listed it on the RMLS. With no experience and little cash, we decided to purchase it after inspecting the home. With only $2,000 in the account for the earnest money we agreed to a price of $95,000. This quickly forced us to get very creative! I had mentioned this deal to my brother who then referred me to an interested party willing to take on the contract at $123,000 one week into our initial purchase agreement.

Three weeks later, the property closed and we walked away with our original $2,000 earnest money plus the $28,000 profit from selling the contract.

Purchase Price: $95,000
Cash invested: $2,000
Sale Price: $123,000

At Closing:
Earnest Money Returned: $2,000

Profit: $28,000

What made you interested in investing in this type of deal?

Honestly it happed by accident, I declined the original offer 3 times until he mentioned that he was going to list it with an agent. Although I am very interested in doing a buy and hold for future deals to build our rental portfolio.

How did you find this deal and how did you negotiate it?

One of our customers we had done some contracting work at his personal home. We offered $90,000 and his countered with $95,000.

How did you finance this deal?

We put $2,000 for earnest money which we got back at closing after selling the contract to a third party.

How did you add value to the deal?

None, SOLD AS IS

What was the outcome?

A huge learning curve and confidence boost plus $28,000 profit.

Lessons learned? Challenges?

Lessons learned:
1) Writing up a purchase agreement
2) Writing up An Assignment agreement

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

@Michael Fleet Congratulations, great deal!

@Collin Schwartz thanks for your testimony. I am truly inspired by this post. My wife and I are looking to venture into rental properties heavier this year. Looking to Aquire 24 units this year with 2 already under the belt.

I am currently in the new build aspect of real estate investing as a GC builder. This allowed me to see the potential of both build/sell and renting since we build for personal investments and for silent investors in the Tri-Cities WA area with 90% of our investors from out of city and state.

If anyone could recommend networking groups in the area, we would be much appreciative. Mean while I will keep looking.

Again thank you for your inspiring post!