All Forum Posts by: Account Closed

Discover won't do a loan on a rental property though.

Thanks, Yoann. That will be good advice for the future that I will definitely keep in mind.

I did find financing though. I was able to find someone that will do an equity loan on one of my properties. Now I'm in a bidding war with another buyer. We'll see how it goes.

Either way, this was a good learning experience. I talked to many people, learned more about rules/regulations, dealt with multiple rejections, and basically had a decent time doing it. I would much rather do this stuff all day than my regular job. I even found a couple lenders that can help me with other things later, as well as a lender that told me about a complex strategy that involved multiple lenders. Quite frankly, the experience was worth the time and hassle alone. 

Thanks, everyone!

Does anyone have any ideas on how to get a loan for a $40,000 property. I'm having trouble finding financing for a duplex. I have a single family that is paid off, but I am running into trouble in a few different ways. Either the home is not worth enough, the list price is too low, I don't live in the home I want to use for an equity loan, etc. I have called everyone I could find while searching the internet, and no dice.

Any ideas?

Thanks for the replies, everyone!

I'll try the MI forums, but local meetups are non-existent. I tried local banks and credit unions, but non bueno.

The home I would like to use as leverage is not my primary residence. Nobody will do a HELOC or equity loan on a rental for some reason. Also, the house likely wouldn't appraise for enough to use, as it needs a roof and siding, and they don't take ARV into consideration. My current primary home is a duplex that I purchased 6 months ago with a FHA 203(k) loan. I can't refinance at this time (I think).

I don't have anywhere near $40K in credit card leverage. I would give it a shot if I had it.

Does anyone have any ideas on how to get a loan for a $40,000 property. I'm having trouble finding financing for a duplex. I have a single family that is paid off, but I am running into trouble in a few different ways. Either the home is not worth enough, the list price is too low, I don't live in the home I want to use for an equity loan, etc. I have called everyone I could find while searching the internet, and no dice.

Any ideas?

Thank you, Vickie. 

I don't think we are ready for brokerage. She enjoyed helping me with looking for deals and she would like to make a career out of it. She's way better with people than I am.

My daughter wants to become a real estate agent. I am wondering what online course is best, or are there any other options for coursework? I am an investor, but know nothing about the agent side of things.

Any help is appreciated. Thanks!!

Investment Info:

Single-family residence buy & hold investment in Calumet.

Purchase price: $32,500
Cash invested: $36,500

3 bed 1 bath single family home @ 1100 sq. ft. With garage on a .25 acre lot.

What made you interested in investing in this type of deal?

I just wanted a house at the time. It was cheap and the seller was offering to carry the note.

How did you find this deal and how did you negotiate it?

Some website. Can't remember.

How did you finance this deal?

Land contract. Simple interest, no balloon. 30% down with a 5 year payment term, which has since been satisfied.

How did you add value to the deal?

I installed a new boiler and added quite a bit of sweat equity.

What was the outcome?

I own the home flat out, and now that I'm house hacking a different property, this will be straight profit, minus taxes. Also, if something ever goes wrong during the fledgling phase, I always have a home.
I haven't had the home appraised, but it should certainly be able to sell for twice the purchase price.

Lessons learned? Challenges?

Pay more attention to what you are buying, and always remember that people are full of it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Calumet.

Purchase price: $85,206
Cash invested: $3,500

Duplex with 3 bed and 1 bath @ 1300 sq. ft. each side. One unit has garage. Brand new boilers installed for each unit.
New appliances also installed.

How did you find this deal and how did you negotiate it?

MLS.
Went back and forth on price due to boilers being worn out. Ask price was $79,000.

How did you finance this deal?

This is a house hack using a FHA 203(k) loan.

How did you add value to the deal?

Adding new boilers as part of the mortgage.
Also the house hack itself, as one unit was move in ready, and the other unit needs work. While renting out the nice unit, I can work on the other unit while living in it, thus satisfying the terms of the FHA loan. My unit will need a complete kitchen renovation, which is almost done, and new flooring.

What was the outcome?

The loan was around $88,000, and the building appraised for $100,000 before the boilers were installed. One unit will have a new kitchen and floors, so I'm expecting a better appraisal in 6 months to a year, market depending of course.

Lessons learned? Challenges?

Persistence is key.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, my local agent was inexperienced, but worked diligently to get this deal closed. Neither of us have ever dealt with a rehab loan before. The selling agent was also helpful in finding an appraiser in decent time.