All Forum Posts by: Robin Wilk

ARV is based on comps (very similar sold properties) that have usually sold within 3 to 6 months ago. They should also have similar features and bedrooms/bathrooms, and roughly the same square footage. They should also be close to the subject property usually within a 1 mile radius.

You can hire a contractor if you think it's necessary to get an idea of the repair costs. You can also ask a realtor to pull comps for you to get the ARV if you choose to that way it will be less guess work for you.

Keep in mind that they must maintain the payments or risk triggering the due on sale clause within their mortgage. Also is it possible to put both the seller's name and the investor's name on the deed at the same time (a co-ownership of sorts) thus avoiding the due on sale clause?

That's one challenge I am facing at the moment getting out and networking not due to fear but due to circumstances that are somewhat out of my control to a point as I am unable to drive. It's basically due to a disability I have. This makes things somewhat problematic for me. However, I'm not out of the game yet, I just have to figure out how to overcome this obstacle that's all.

Also referred to as a Term B Loan or an institutional term loan. A term loan made by institutional investors whose primary goals are maximizing the long-term total returns on their investments. TLBs typically mature within six to seven years and have a small repayment schedule (usually about 1.0% of the principal amount of the loan per year, payable quarterly) during the term of the loan, with the remainder due on the maturity date. TLBs may provide that the Term B Lenders have the right not to accept prepayments of the loans. They may also have a prepayment penalty of between 1.0% and 2.0% if repaid within the first year. Interest rate margins on TLBs are typically higher than the interest rate margin on the initial Term Loan A (TLA) any revolving credit loan under the same loan agreement. 

I pulled this source from Practical Law.

What about doing a lease option would that be possible?

Joshua, 

The first part what you said about the seller's bank allowing the buyer to take over the seller's mortgage is called a "subject to" contract and it runs the risk of triggering the due on sale clause within the seller's mortgage where the balance of the current mortgage would be due upon sale of the property. Just wanted you to be aware of this if you choose to go down that road.

Jeremy is right banks don't like assignment contracts. You may not be able to make this one work the same way as your other deals. I'm not even sure if lease options would work with this deal.

Having a team in place simply allows you to scale your business up. It's not a requirement if you don't plan on investing full time. You can do it solely on your own. If at some point later on you decide you want to invest full time then you can get a team put in place to help you out. Hope this helps.

I believe the way an FHA loan works is once you have it you have to wait out that year in that property and after that year you are about to refinance your existing loan. I also think that is how the BRRRR strategy works it's basically house hacking.

I can't speak for everyone on here but honestly I think REI is a great investment tool because no matter how you look at it people will always need homes. A home is a basic necessity that everyone needs whether they are young or old. In life there are usually 3 basic things people need to survive. Food, clothing and shelter. Everyone needs a roof over there head. I think that's why I'm attracted to REI not because of the vast ways I can invest in real estate but because of the simplicity of it. To think that I can take one of life's basic needs and use it to not only help myself but also help others while I'm at it, is awe inspiring.