All Forum Posts by: Sebastian Heretyk

Hello Bigger Pockets community. 

I am under contract for my first property, however I have yet to finalize a loan. The recent changes that have been implied on banks have made me a bit hesitant and I am not sure what would my best option be.

Here are the details of the project.

Purchase price 107,500

ARV: 180,000

Est. Rehab 30,000

Available capital for project: $30,000

I've got good credit score, but am self employed and am unable to get a direct loan from a bank under my name. I am thinking to co-finance with a family member who's got a stable job and good W2, so I know they are good to get a loan under their name, but I'm thinking maybe there is a better way for my to finance this other than thru traditional Fannie Mae route.

Please help, all the best,

Sebastian

Bigger Pockets writing here to seek help and advice on my first deal.

I have officially came under contract for my first deal, I plan on using the BRRRR strategy.

I have the property under 105,000 and compared the ARV of many other comps and came at the minimum of 170,000, so got 65,000 of equity in the bank. I do have the money for a down payment but seeking financing for the property and potentially the rehab cost which I've calculated at being around $35,000 rounding to 37,500 for misc. with 12,500 of this being Cap. Ex.

What options do I have here? 

For a 24 yr ind. I don't have the taxes required, so I would co sign the property with a family member if needed.

Seeking financing with quick refinance options (non-3 month) 

I've also considered on doing an equity line of credit after refinancing, is this something that's possible to do with the BRRRR strategy?

In advance thanks for the input.

Looking for home inspector North suburbs of Chicago,

Are there any companies that exists in the suburbs that can do 1-2 day time frame inspections?

Maybe I didn't state it right.

I came across a deal which asked for cash only not so long ago and I'm wondering if I can find a lender to fund that.

In comparison, if I find a deal, which doesn't require cash, any offer works, but I know for a fact a cash deal is more appealing, are there lenders out there that provide such services. Yes this most definitely includes my contribution.

Hey bigger pockets forum!

I've been constantly educating myself and understand that most cash offers appear much more appealing to buyers. I am someone who is trying to get creative with investing and don't have more cash on my hands other than the down payment. Are there lenders out there who are willing to pay cash for a deal that is appealing? I am mostly looking to BRRRR although I do understand that situations change sometimes and flipping ends up being the better pay off long term. But if I don't have much of my own capital, and want to be convincing to the seller when negotiating the price, what else can I do?

Looking to purchase my first property, and came across a big equity potential project, but seller asking for cash only.

I was looking to utilize a hard money lender, both for the rehab project, and could potentially cover the 20%, but are there any hard money lenders that would go with the deal (Cash only) loan on the property as well, if the equity of the property is there of course?

Do I have any other options for such deals, if I can only put up to 20% of down payment, but seek a lender for the the rehab project?

I appreciate it all, just contacted a few others and you are in fact correct.

Cheers

I am finally close to closing a deal for a flip, however my main focus for investing is BRRRR. I just spoke with a bank-lender and the finance agent said that from the start of COVID-19 banks do NOT offer re-finance-Cash Out loans. I'm sure there are many ways to go around this, any advice? I do NOT have much money to invest and am looking to be as creative as I can be. I've also found a few interested private lenders, but this information that I just received about No-Cash-Out is like a shot in the foot.

Good Morning Bigger Pockets Community, have a quick question in regards to what lending method I should approach, here's my background.

I am currently 24 years old, self employed, from my conversations with banks this is a hit as I'm not able to take out FHAs based on my recent taxes, although I try to see it as a positive, especially during this pandemic. 

I've been in the process of education myself of the Real Estate world for 6+ Months, I believe I have a good base-understanding for borrowing money and the process required to start investing-BRRRR. Although I don't have much money under my name, I am very determined to start investing creatively. I just recently made a presentation to my folks, as they are also interested in investing, and are actually looking to move while keeping their current townhouse for rent. As of now we have two options,

option 1: find a property that we can purchase under value for them to live in, as they are looking for a residence they can stay at for the next 3-4 years. I want to aim to build up some equity into this property, refinance, and cash out after refinance. Although not sure if it's worth going the FHA/First home owner route for low down payment for them, since I know seasoning period tends to be around 6 months.

Option 2: Before this takes place, I am keen to find a property myself to creatively get some equity from, remodel or even renovate, refinance, and would love to keep the property as a rental. Although I have some ideas of how to raise money, at least for the down payment, I keep on second guessing and doubting myself. I have 2-3 individuals that I can reach out to for a short-term private loan which would allow me to accumulate around $20,000-$30,000 for a down payment, but I am a bit lost on my best option in terms of financing the rest of money/loan for the property as I do NOT have much of my own money for rehab.

I have 3-4 Stars under my belt who have committed to work as a team: Agent, Attorney, Contractor/Handyman, and have 2 other members as well as myself willing to put in the manual labor on the first few properties.

Would appreciate any comments and suggestions.

Nathan, thanks so much for the reply! Quick question, I have a student debt of $15,000. Would you recommend paying that off, even with the current student forgiveness that's going on at the moment.

I've adjusted my payments so that all unnecessary expenses are erased, but I feel paying the student debt off first will majorly set back my start date. In advance thanks for the interaction