All Forum Posts by: Rob Randle

When using hard money to buy and rehab how soon can I refinance to the new ARV?

Do I have to still have to wait a certain time period or can I refinance my cash-out right away once the rehab is complete?

When I spoke with a mortgage lender they mentioned a guideline of having to wait at least 12 months before a refinance.  However, that was taking in consideration that the original loan was conventional 80/20.

 I don't know, I will be driving by the area tomorrow.  Guy that I spoke to said he had the deal for two months and had low-ball offers and mentioned he is just going flip himself if he doesn't get acceptable offer.

It is a wholesale deal, I just spoke with the guy and he is fixing it up currently and thinking of flipping it himself. He said he that he has hard money guys and they lend 65% of ARV.

I came across a local company that has a listing as follows.  It is a new listing and hasn't been on the market long.

3 BR / 2 BA

Purchase Price: $75,500
Estimated Repairs: $12,000
ARV $125,000
Local Rents in area: $1,400

This listing is in a nicer area and looks like a deal.  Obviously I would have to do my due diligence with these numbers to verify.

Do these companies do the repairs themselves?  Is there anything that I should look out for with companies like this?

26, one rental and looking to acquire a second.  My first was a A+ property and funded with a conventional mortgage.  My second one will likely be acquired using the same strategy.

Plan in future is to house-hack primary SFH (after I purchase my second investment) and fix it up and keeping it to rent.

@Brie Schmidt

Listened to your podcast and liked it.  I relate to what you do because I hold a corporate job and purchase higher quality / area rentals.

 Act now.

Jump into the deep end with RE and surround yourself with people who are successful. 

100% in one thing is better than 50% in two things because it doesn't give you the opportunity to mentally slip.

 I have one and looking to buy a second shortly.  I focus on higher end rentals in nice areas (even though they cash flow less).  I factor in "return on effort" when evaluating rentals and in high end areas tenants are easier to manage.  The last thing I want to do is to spend a lot of time and effort managing my rentals.

 Thanks for the input, interesting story.  Do you find that the realtor side of your business and investing mesh together?  Ex: such as getting leads on properties that are deals and form connections from your daily interaction within your market

My thought is that being so active in the RE industry may automatically put you in a mindset to be proactive on the investing side.

For those who switched from corporate job to a realtor or full time investor:

1. How was the transition?

2. Do you believe that being a realtor to create extra income when pursing investments (buy & holds / flipping) is beneficial?

3. How do the hours compare? I imagine possibly more hours but also more freedom.

4. If you had to make the decision again, what would you chose?

5. Any advice?

1. My first investment was a condo, and yes they sell for that much. The HOA is well run etc, I did a lot of background work on them and grew up in the area. SFH's in the same areas are double the price and double the taxes. Ideally I would like to buy SFH's but they currently out of my price range or in lower end neighborhoods. I am still weighing the pros of cons of condo's in A- neighborhoods vs. SFH's in C+ neighborhoods. In the future I could potentially trade up my condos to buying SFH's in higher end areas in numbers are right.

I'm biased for sure about condos being a better investment than most people think on here if proper background work is done.

2. No, I am wrong in what I said.  I mean 10% cash on cash return.

Also, I see that your are a real estate entrepreneur.  How did that come to be?