All Forum Posts by: Ryan Kennedy

Hey @Jimmy Martz thanks again for all of the great details on your deals.  Can I ask a little more about financing?  I have the liquidity to buy houses for cash but plan to finance the repairs.

1. Who have you been using to finance the repairs?  And do you mind sharing the terms?

2. Were you able to cash-out refinance these properties without 6-months of seasoning?

Thanks! 

Hey guys,

Hoping to get an offer accepted on my first deal tomorrow and trying to get hard money lined up for the purchase price. The deal pencils out with a safe 70% ARV so I think this is a very attractive offer for a local lender - Do you think these are the best terms a newbie can get? I also want to make sure this isn't just something they advertise and then give me a crappy offer after pre-approval.

• 10% down payment (no minimum credit score required)
• Optional construction component available, ask ESF for details
• 12% annual interest, with 1% monthly interest-only payments
• 5 month term with a 2% origination fee or 9 month term with a 4% origination fee (get a point back if you do 9 month and close in 6)
• Administration fees totaling $780.00for auction and $995 for non-auction.

And while I'm at it, does anyone have recommendations to help me accurately present myself as an awesome borrower to attract the best terms?

Cheers!

@Bryan M. @Shawn M.  Thanks for laying that out for me!  I realized the simplicity of this when I found a calculator online.  Is it pretty normal to make interest-only payments ($2583.33/month) for the six months and payoff the $317k once refinanced?  I've also heard of people making a "balloon" payment at the end of the term instead, do either of you know if that is more out of the ordinary?

@Shawn M. thanks so much!

Hey Guys,

Sorry I'm terrible at math but I have a rather urgent question. I'm getting a private loan from a friend to fund a BRRRR that I plan to live in once rehab is complete. I just want to know what the home will need to appraise for in order for my friend to get their investment and interest back once i refinance. Here are the current numbers -

Purchase price - $217,000

Rehab - $100,000

Estimated ARV - $450,000 (I'm looking for a precise number that I need to hit, this is where I need help!)

Private loan - $317,000 @ 10% interest.  I would like to make interest only payments and then pay off the loan in full when I refinance into a conventional loan after 6 months.  

If I cash out refinance at 80% in 6 months, what does the appraisal need to be in order to make sure I pay my lender back? I'm sure the answer is simple, but I'm having issues with the BRRRR calculator to get that specific number.

I'm also very open to recommendations on how to structure this.  Thanks!

Hello friends,

So I was out walking for dollars and noticed a vacant home that actually appears to be in good shape.  I've done some serious research and am trying to see if there's still potential of finding the rightful owner and buying this house.  Here's where I'm at in my search - 

- Taxes are overdue for the past year and a half

- Found the owner's obituary online, turns out they passed away a year and a half ago, ding ding!

- Obituary says the owner is only survived by a sister (appears to live out of state) and nieces and nephews.  

- Can't find any county records showing opening of probate or anything like that, so I'm assuming there was no will or trust for the home to go to.

- I spent $25 on truthfinder.com to find more background on the deceased owner which gave me nothing.  I've spent some time trying to find the surviving sister online but am not having any luck, I'm assuming she is elderly as well so little to no online presence.

- I mailed a hand-written letter to the deceased owner about a week and a half ago.  The mail hasn't been returned so I'm hoping it was forwarded to the sibling.

Does any one have recommendations on how to track down the sibling?  I've read that probate can be rather daunting and time consuming, but I'm actually looking to buy this home and have plenty of time so I'm not ready to give up yet.

Thanks

Ryan

Hey Michael any update on this? I'm in Seattle and think I just found  property in a very similar situation.

Curious about this as well, I see some new properties being built at the gorge by Quincy WA.  I figure you could charge an arm and a leg during bigger music festivals but I can't verify that, and I also don't know what it's like year-round over there.  Seems like it'd be a great place to stay to launch out and visit wineries.  

Lots of awesome wisdom here, loving this conversation!  I have to side-step a little with something that's been weighing on my mind as I plan to invest in our area.  Does the threat of this "impending" earthquake not stress you out?   I work in the insurance industry and my boss's retirement strategy is heavily based on rental properties (and the land beneath them).  They have a handful of properties around Seattle suburbs and I know for a fact that none of them are covered for earthquake (in fact they are ineligible for coverage due to age).  If the big one really hits Seattle they could lose all of those houses and insurance will pay $0 for it.   I can't imagine having all my eggs in one basket up here, have you thought about diversifying to other regions to hedge risk or am I crazy?