All Forum Posts by: Saji Ijiyemi

@Eric Roloson, thanks for asking. I did acquire the property in Dec. 2018. See here for the success story. 

Buy

• Property Source: auction.com

• My Source of Funds: 401(k) Loan

• Purchase Price: $154,500
• From me: Down-payment = $15,450 (10%), Closing Costs = $11,587 (7.5%), Points = $3,281 (2%), Interest = $6,500 (4%)
• From Hard Money Lender: Interest Only Loan = $139,050 (90%) + Rehab loan = $25,000 (16%)

I acquired the property in the name of an LLC but that strategy did not work out for this deal (reason in the refinance section.)

Closed on the property on Feb. 1, 2019.

Rehab.

Rehab was completed on May 1, 2019 after going through three contractors. One lesson learned is to order windows as soon as possible if you're going to need them. I didn't know it takes 2-3 weeks to get windows if ordering them new. Also, a lot of unpreparcostsost showed up during rehab, it's very important to have a lot of buffers in your estimates.

Rent.

Got a tenant on July 2019 @ $2,050/month. I initially did the marketing/advert/showings myself but had to hire Ikos after a while to free myself. Ikos got me very good tenants for half of the first month's rent.

Refinance.

After six months seasoning, I refinanced the property. After several unsuccessful attempts to cash-out refinance the property back into my LLC, I was forced to refinance back into my name because of a hefty additional tax that I am not prepared to pay.

• Appraisal: The property was appraised for $250,000 and I was able to get a 75% LTV with Cardinal Financial (Sebonic). The property is currently on a 30-year loan at 4.75% interest rate. 
• My monthly mortgage payment is $1,291 with a monthly cash flow of about $660/month.
• My experience with Cardinal Financial was not a very good one and very glad they recently sold the loan to Bayview Loan Servicing.

Repeat.

I lost my job in September, 2019 and unfortunately was not be able to pay the 401k loan off. I'm currently looking for creative ways to repeat the BRRR process.

Respects.

I'm adding this "R" for "Respect" to the BRRR process because a tree does not make a forest and a lot of people on this forum has tremendously helped me to make this deal a success. I want to especially give a shout out to @Rich Baer. From my very first call with Rich in the afternoon of Nov. 20, 2018 to my last week call with him, Rich has been a mentor, an adviser, a connector, and most especially a friend. He has invited me to visit projects he's working on and ask questions along the way. He has connected me with reliable contractors, loan officers, and other investors making things happen in the Baltimore area. Thank you Rich and thanks to the BiggerPockets for making all these possible.

I hope this helps. I'll be happy to answer any questions you might have.

@Tarik Turner, Where?

Hi Marci, does PenFed required seasoning or it's not a problem for them? Thank you.

Thank you @Greg M. Thanks for #2) I will "Call up the HOA and ask them what type of tree and how old it should be. " Hopefully I'm not looking at spending thousands of $$$ on a tree.

I'm closing on an REO/Auction property next week. The bank just notified me that there is an HOA violation on the property -- a tree was uprooted and needsbto be planted back -- they want me to sign a form to say I am aware of the violation and would be bearing the responsibility to plant the tree back. They said they've warned that the property is sold AS IS WHERE IS. My question is 1) Is this a deal breaker? 2) How much does it cost to plant a tree? 3) Someone suggested I called the HOA company to send a fine for the violation to the Closing Company... and that way the Seller/Bank will be responsible for the Violation... Can I do that? 4) Can I refuse to take the responsibility for the tree?

Kudos to you @Cam Jimmy. Very encouraging. Two things I'm learning from your story. 1) Perform only the work that I am excellent and efficient at, and 2) Be conservative with my numbers. Congrats again my friend.

I bought an REO property on auction. The owner is currently occupied the property and the auction company said I'm not allowed to access the property until after Settlement/Closing. The Bank filed a 'Writ of Possession and Enforcement of Judgment' with the court on Oct. 2018. How long does it take for the court to process this? How will I know it's processed? Will I have to do another eviction once I legally take possession or is there a way to follow up on the 'Writ of Possession' the bank already filed? Thank you.

@Justin Thompson, currently talking to Lee Mahaffey at LimaOne Capital. Lee took over my application after the original consultant in charge of my account quit without warning. I've gotten my pre-approval letter. Now, Lima One is saying they want to do Appraisal and Inspection prior to closing. I bought this (REO) property at Auction and the Seller said there will be no access to the property prior to closing. I wasn't told earlier that Lima One Capital will be doing appraisal... this alludes to the clear communication and transparency other people are pointing to in this forum. Could you please let me know if this is the standard Lima One practice? I don't want too much surprises. Thank you.