All Forum Posts by: Patrick Philip

With careful research, you can find both hard money and private money that will lend 100% of the purchase and 100% of the rehab if you have a deep enough discounted deal?

You complete the rehab and then refinance the property to a conventional loan. You typically can get 80-90 LTV or loan to value when you refinance within the 1st year. If you have truly got a wholesale property and rehabbed it, then you should easily get the underlying loan and any money you put into the deal back out of it through the refinance. Then you just rinse and repeat. If you PM me, I can fill you in on the list of hard money lenders that will fit that scenario?

I sent you a message. Did you get it? Sometimes I'm not sure if I'm using the PM system properly.

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Originally posted by @Jeff Keller:

With index funds you are earning a return which depends on the economy and doesn't require any significant effort on your part. With real estate investments, the return you get will depend heavily on what you know and how you use your knowledge. Very different investments.

If only I had that knowledge.

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I hope this post belongs on this forum. I'm definitely going to start a wholesaling business, but that's not real estate investing.

I'm trying to decide whether to put my (hopeful) earnings from wholesaling into real estate investments or into the stock market.

With real estate, I would need to put large sums of down payment money into a building, then rehab it and refinance. With refinancing, could I potentially get every dollar back? I would expect to make a few hundred/month/house and then for the house to appreciate over the course of the 30 year loan so I could sell them all for potentially millions when I'm older. I could also take advantage of 1031 exchanges along the way.

There is also fix and flip projects, which, if I did constantly, could provide another $50-60k of income per year at the smallest scale.

This is a lot to think about and could drastically affect my life seeing as I'm only 29.

If I went with stocks, they would be index funds.

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Originally posted by @Account Closed:

What if you can't find a buyer for your deal? What then ? Could disappoint a lot of people thinking you were going to close

But isn't that true of any wholesale deal?

2 Votes

Originally posted by @Bob Derwin:

I look for properties in Housing/Real Estate For Sale. I see no FSBO section in my area (Scranton and Poconos in PA).

https://poconos.craigslist.org/search/reo

There's a subsection of "real estate for sale" that says "by owner."

It's a drop down menu at the top.

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Originally posted by @Bob Derwin:

In my area, most of the low priced fixer uppers on CL seem to already be in the hands of wholesalers. You may find it to be different in your area.

But is this in the FSBO section?

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Someone recently advised me to:

1. Build a massive buyers list

2. Get Craigslist FSBO's under contract (especially fixers) for the lowest price I can negotiate.

3. Mark them up $3,000 and market them to my huge buyers list.

The guy who told me this is a billionaire.

Does this sound like good business?

I guess I should just try it instead of asking about it on this forum.

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@John Hickey yes, I own my own home with no mortgage. But, it has a co-owner. Why do you ask?

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Originally posted by @Kyle Gadberry:

@Patrick Philip I will see what I can dig up on my end and get back to you. What type of property is it?

Many of them, I'm theory. Hotels and apartment complexes.

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Originally posted by @Kyle Gadberry:

@Patrick Philip Is the private lender ok with the seller carry back? If so, the seller will be in 2nd position on the property. It does makes sense, that's 100% financing. It's not a bad way to get a deal done. Most lenders want to see some skin in the game, usually 10%.

I don't think the private lender would be okay with the seller using the same property as collateral that they are using. Would ANY lender be okay with such a crazy thing as that? They lender I used asked if I was using a different property as collateral on the down payment. Perhaps I need to switch lenders or maybe what I'm looking for doesn't exist.

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All Forum Posts by: Patrick Philip

Patrick Philip has started 262 posts and replied 908 times.

Post: Real Estate Investing or Stock Market

Post: Real Estate Investing or Stock Market

Post: Real Estate Investing or Stock Market

Post: Wholesaling Craigslist FSBO's

Post: Wholesaling Craigslist FSBO's

Post: Wholesaling Craigslist FSBO's

Post: Wholesaling Craigslist FSBO's

Post: How do I identify properties that I can add value to?

Post: How to fund the down payments with OPM?

Post: How to fund the down payments with OPM?