All Forum Posts by: Jennifer Ryan

I had a similar scenario w/ one of my properties. They were great tenants & wanted to attach a patio cover to the property that would extend out over a concrete patio slab. They had a family contractor that would do the work, if I paid for the materials…

I was hesitant but I reasoned that this was a long term investment & Texas is hot in the summer so, the improvement would be a win win so long as the contractor KNEW what he was doing.

I agreed but only after I did my due diligence. I researched his company & interviewed him personally as to structurally how xyz would be done. Once I was sure he knew he what he was doing, I said yes.

3 years later, I have the added value plus, the new tenants hang out back and take better care of the lawn and the landscaping.

Piggybacking on Joe’s comment, you can also go directly to TREC https://www.trec.texas.gov/ scroll down and look towards the middle of the home page and you'll see FORMS. You can download them for free. If you want to sign them electronically, you'll have to use DocuSign but I'm pretty sure you can fill in the PDF's blanks on the computer.

Caution Edward! Though the TREC forms may seem straight forward, I strongly suggest you take some contract classes! TREC, ONE TO FOUR FAMILY RESIDENTIAL CONTRACT is more geared toward protecting the buyer & contains a lot of buyer outs you'll want to know about.

FYI, if you don't find any REI contract classes you can also go to any local Board of Realtors and take contract classes even if you're not a member. You'll pay a little more but they're not that expensive.

Search online for one near you & call for information. Having said that you need to know that they will be teaching the TREC contract forms as well as TAR (Texas Association of Realtors.) Unfortunately you will not be able to use TAR forms as they are only for Realtors. But they TREC education is invaluable.

Final word. TREC contract forms are a great start but you’ll want to network to find forms for other scenarios, as you progress in your investment career.

Take care,

Jennifer Ryan

The HELOC can only be against your "Primary" residence, your Homesteaded property. If you change Primary residences, you'll have to pay it off. If move and are just renting but keeping that property as your Primary, I doubt they'd care but you should ask them upfront before you get the loan.

If you'll continue residing in the 4-Plex, as your "Primary Residence" a HELOC has less closing costs. But whether you get HELOC or a Conventional Mortgage you'll have to get an appraisal and they'll all only loan 70-80% LTV. You'll want to compare terms on all the scenarios including your VA option.

Hope this helps,

Jennifer Ryan

Sorry, they were saying that it's taking them that long to get the loan done.  

One of my lender's told me they can't get anything closed for a month plus.

I'm fine w $30k, I'll think about $20k, but that's for uncomplicated flips. If it's in a challenging area for resale or the rehab is a complete gut or requires something like re-wiring & plumbing, then $20-30k wouldn't be nearly enough. REMEMBER, this is me personally though. (Of course, I'd love $40k+...)

Good Question Daniel. I'm curious if anyone actually goes by a percentage of ARV (excluding repairs). That sure would simplify things though. I personally don't.

I look at the total of my estimated costs including: closing; on both the buy & the sale, holding, rehab etc. then I determine a minimum amount I feel good about making for the amount of time I think it will take to do the rehab and resale.

I also look at the risk involved. Is it an entry level property that’ll sell in a heartbeat or, is it a niche property?

If it’s fast, I might be good with only making 10k. Typically though, I’m looking for a minimum of 20-30k. That doesn’t count the 1920’s overhaul though.

I’m sorry, I know this is absolutely useless to you but I post with the intent to educate. 

I’ve got a feeling that a version of this is the more the typical scenario for most investors.

Take care!

Welcome Ashley! 

You may not know it but you swung from one extreme to the other... Credit Unions to Hard Money. How about banks?  If you've got good credit and income and you have money for a down payment, you should try some banks that offer "Portfolio Lending." meaning, (they keep some of their loans in-house and they have more flexibility on the loans they chose to make.)

You'll have to make several calls to find them and you'll still have to jump through the application hoops once you do but, if you get the rehab loan, it's well worth it. You'll save a lot over hard money & you'll establish yourself with a lender for your future projects. At the very least, you get an education in the lingo and how some parts of the lending can's and can'ts'.

If you'd like to know who I use, feel free to reach out to me.

I'm with Greg! 

You'll be waiting a long time to evict because everything will be backed up after this COVID-19 brouhaha so, I'd put on my friendliest, most compassionately sounding self; even if you have to fake it, and offer them cash to be out on such-in-such date w a clean property. Tell them you'll be there to inspect and if they're out and it's clean you'll hand them a cashier's check for that amount but, if they've left the place a mess they'll only get 1/3rd.

Have a 2 cashiers checks ready to go.