All Forum Posts by: Robert Rodriguez

The house that I own right now is currently being rented out entirely to a family. So, I am living with a friend who offered to charge me cheap on the rent.

I will look at some hard money lenders. I have seen one persons add already but will see if I can find more and compare rates. I always get the question, "what kind of houses are you looking for?" What is meant by this question? I mean I wantto flip houses and i'm looking for a good deal.But i'm sure that is not the answer they are looking for. Alsowith these hard money lenders and living in Northern Va. Should I be afraid and stay away from houses that are 300k even if they are a good deal? I also get asked what price range i'm looking for and again I think to myself does it matter if the deal is right? But since this would be my first flip should I only look at/for houses that are selling for 150k or less?

Thank you so much for the advice proided so far, you all are right it is so easy to just walk away... on I shall push until I hit the aha! moment

Ok so I currently live in the Northern Virginia Area. I was introduced to REI about three years ago by a coworker. I have always though of the idea but he actually put a book infront of me and said read it. From there I was ready to go... of course the big dream go out and make some money and leave my day job. Since then, I went out and purchased a house and have been renting it out from day one. That was when I was 24. I haven't done anything since except read books, and seams like day dream. Well no I am finishing up my Masters degree and think I will have free time to start doing soem things. I spoke with a lender who looked at my numbers and informed me that I would need 15% down payment for an investment property in this area and I don't qualify for a loan. I suppose cause of my House I bought and my 50k in school loans. I really would liked to be involved in flipping but now that I can't get a loan I am not sure where to go from here... There aren't too many houses under 100k in Northern Virginia, or atleast not that i know of...

Travis,

Thank you for the response. You explained everything very well in an easy to understand way. I really appreciate it. I do have one more question about what you said. You said, "A point or in this case 3-6% is the origination. 1 point is 1% of the loan amount, for a 100,000 loan a point is $1,000. So 3 to 6 point is $3,000 to $6,000"

So does that mean I would have to put in 3-6% up front to get them to give me a loan? So in your example I would have to put down $3,000 - $6,000 in order to receive the $100,000 loan?

Thanks again

Hello I am very new to investing and trying to become familiar with certain terminology. I am not looking to make any moves right now but would like to have this info explained so i will know in the future.

This info was provided in a forum by a hard money lender can someone please explain this in terms I can understand. All the real estate talk and the abbreviations are new to me:

We lend on residential (NOO) and commercial property throughout DC, MD and VA
Rates from 12-16% with 3-6 Points
Closing in as little as 4 business days
We will fund 100% of purchase price and 100% of rehab costs (within 65% ARV)
Underwrite is primarily based on the asset not the borrower
We are upfront with all costs.

Tax Service Fee$150
Flood Certification $50
First deal $1,000 funding fee ( amount is reduced on future deals)
No prepayment penalty ...

Not sure what NOO is? I am assuming 12-16% is the interest rate but not sure what the 3-6 Points is talking about. I know ARV is After Resale Value but i don't understand the within 65% ARV can someone give me an example using actual numbers.... maybe that will help me. Also not sure of what the Underwrite part is about. Last is the 1,000 funding fee, is that normal? is that high? This is the DC area.

Thanks for any help provided BP

I am trying to start an LLC. I have just moved out of my house (in Va) to a rental property (in Md). I would like to now rent my entire place (in Va) out to a family. When i went to file for an LLC, it said I have to put an address for my place of business. Should the address be the place I own and want to rent to families (the one in Va) or The location I actually live at now and am renting (in Md.)? I may have two other options a P.o. box or my parents house which is also in Va but 4 hrs away from where I live. This appears to be the only thing so far from me starting my LLC... please advise if you have experience. Thank You