All Forum Posts by: Rob Sasser

So I am currently a buy and hold investor.  I have a bit of cash where I can buy one property and rehab it with my own money, then take a mortgage out on it after it is finished up and do another one.  I would love to be able to do more then one at a time.  I believe I could find a financial partner to help me so I could do more then one deal.  So how could one structure a deal that would be good for both parties in a buy and hold scenario?  I know with a flip you could just split the profit at the end of the deal but not with buy and hold.  

Just kicking around one, maybe the private investor could buy the house with cash, I could pay for the renovations, and then when I am able to secure a down payment and financing I could buy it back from him at a pre set price making him a good interest rate on his money?  And if I went with this scenario, is there financing to where I would not have to come up with the down payment since the loan would be under 70%arv (since I rehabbed it)   

Any ideas would be greatly appreciated.

I would save all your cash. Your debts are all at low interest rates and you should be able to generate better then 5% return on the money that you invest, so just from a numbers stand point it is better to invest the money. And your student loan interest is tax deductible anyway so you'll get 20-30 percent of that back in taxes(depending on your bracket). So really that rate ends up only being 3.5-4%.  When a deal pops up you are going to need the cash to jump on it. Why wait by spending time paying down debts first. Just my take on things. 

I have a question about how to use private money. When you make a cash offer on an reo you have to show proof of funds. How do you do this if your going to use a private money loan?  Do you disclose your lender and show proof of funds from their account?  Thanks for any help. 

Hey Derek. I'm in your same boat now trying to find the best fastest way to buy cash, get it out, and do it again.  What I've found so far is you can do cash out delayed financing within 6 months of the purchase. But you can't take out more then you paid.  Other then that you could do a typical refinance but I think you may have to wait for the house to season a little to be appraised for a higher value after you made a few repairs.  So it seems if you want cash out fast you can't get as much as you should be able to, or you have to wait 6 months to a year to try and get 80% ltv out.  What I'm trying to do now is buy houses with cash in my buisness name.  I am self employed and own an S corp. after I buy the house in my corporate name, I rehab it and then buy it from my buisness in my personal name.  I'm doing my first one like this now.  The only concern I have with this method is not being able to get regular mortgages in my name after I get too many. Right now I already have 3 mortgages. I have a lender who will do 10 but I'm not sure about the hole debt to income thing. I need to schedule some time to sit down with my lender.  I'm hoping the fact I have a few rentals, and I will technically own the house I'm trying to mortgage anyway, and could possible already have a tenant in place will help me to keep cranking out mortgages.  

I recently purchased a sfr with cash through my s-corp. I am an industrial machinery contractor and had enough cash saved up in my business account to do this.  I bought with cash this way so I could act fast and try to secure a better deal.  Now I am going to rehab the property and rent it out. I then want to take a personal mortgage out for the new value and buy the property from my business. This way all the money I paid for the property and he rehabbing goes back into my business account and I can do it again.  The numbers on this one look like this:

Cash purchase - 75k

Rehab - 20k

Mortgage for new value -120k

So I will take a shareholder distribution out of my company for the 20% down on the mortgage which would be 24k. So in total I will have spent 119k out of my buisness account, all of which will be put back in when I secure my mortgage. So really I get a house that cash flows for no net money down. My question is what is the best way to get the property into my name.  Should I just do it conventional like I have described here, or could I transfer it into my name personally and then refinance it?  It would be best if I could find a way to just refinance it and then pay my business back.  That way I don't have to wait to raise the capital for the down payment.  I have the cash for the purchase and rehab but it would probably be a few more months before I could comfortably take out the money for the down payment. And of course I want to do all this as quick as possible so I can repeat. Any ideas?