All Forum Posts by: Shawn Krieger

Go look at the property first. People always get me excited about so many units and they turn out to be 1960s mobiles that need a complete rehab, but they say they are getting 600 per month and that is well below market. The numbers look decent, but what is the actual condition of the properties.

If they are in good condition, talk to some friends who might have self directed IRAs or 401Ks that might want to lend you some money or invest with you(syndication).

This reminds me of a chat I had with a family just a few days ago. For some context, I believe that mortgage rates operate in cycles. So, it's not a question of 'if' but rather 'when' they will decrease. Here's an interesting tidbit: in the recent history of the U.S., we've experienced 6 recessions. During these times, mortgage rates typically drop by more than 2% from their highest to lowest point. In line with this, the Mortgage Bankers Association's latest predictions suggest that by 2025, rates might begin with a 5.

With this said, buying points on a mortgage transaction to permanently buy the rate down is like putting brand-new tires on a car the day you trade it in.

Hi All, 

I recently purchased another rental property and planning the rehab now. I expect to pay around $40,000 to $50,000 in expenses. I wanted to creatively finance this and take advantage of any cash back/rewards. The interest free period is also a plus. 

Has anyone done this? I am thinking about getting the Chase Premier Business Ink card.

- $1,000 cash back if $10,000 spent in 3 months

- Interest free for 1 year

-  2.5% total cash back on every purchase of $5,000 or more

 - 2% unlimited cash back on all other purchases

- $195 annual fee but i plan to cancel after done using it. My cash back will outweigh the annual fee as well. 

Is there a better card to consider? This seems to be best I found for my situation. 

I'm not sure that will work the way you hope it will. I looked that card up and the "no interest" is only if you pay the balance off in full every month. So they're not floating you a 12 month loan for $195. Anything that they let you carry they charge you a variable interest rate between 19-27%. 

Assuming you could pay off every purchase in full every month to avoid the interest charge, you'd essentially be paying $195 to access about $800 of cash back rewards (at $40k worth of rehab) and the $1k cash back. It's not nothing, but I have a 2% cash back card with no fee at all (but not with the cash rebate). I assume you're going to get a tax statement on the CC for the $1k they give you as a rebate, so you'll have to carry it as income at tax time making it worth maybe $650-750. 

It's worthwhile to think about, certainly - just remember opening a new consumer credit card might ding your credit score somewhat, so you need to consider where that score is now and how fast you'll need to access a higher score. 

Hi. I've been wanting to do some renovations since I bought my home 3 years ago, but put it off. Now I'm a little hesitant due to higher interest rates. Would a HELOC be the best best option here or is there some sort of other creative finance I can look into? Mortgage balance is around $390k and value should be around $650-$700 maybe. If HELOC is best way to go, is there a specific bank you recommend?

Hi! I recently purchased a 4bed/2bath 2000 sqft foreclosure for $12,000 in cash. Walked the property with a contractor and for a full renovation, he is quoting $80,000. Good news is comps support an ARV of $175,000.

This is my first foreclosure purchase and first time renovating a home so I am pretty excited about it but would appreciate any advice on loan options guidance for the $80,0000 renovation.  

I am looking for creative financing or an investor for a property that I've already negotiated pricing/terms, etc. on.  Last year, I entered into an agreement to purchase a 25-unit/25-acre mobile home park in Gray Court, SC.  I did creative financing (owner financing), and invested a chunk of money into the deal and have a 15% stake in the property.  The plan was that my down payment, along with the increase in rents and appreciation, would allow me to refinance out of the deal with little to know (more) money out of my pocket. Well, rates did nothing but go up, so the bank is requiring more out of pocket dollars in order to make the deal work.  I still believe in the deal, but I don't have the additional capital to finalize the deal.  I'm open to suggestions, investors, lenders to get this over the finish line.  Purchase price is $1.6M.

I am in Greenville, SC, about 30 minutes from the property. We have a great, long-term property manager in place and we have steadily increased rents on the units (even on non-turned units) with more room to increase them as they turn over.