All Forum Posts by: Storm Daniels

I have someone who has contacted me and we came to an agreement that involves him selling me his house in Colorado Springs subject to his existing financing.  He has some concerns about certain things and so do I that may not be standard questions given that I am completely new to this, so I thought I'd come here to share the situation and see if anyone has any input for me.

So the numbers work out to my standards and we are agreed as long as I come up with $25k. The seller has concerns about his VA loan benefits being tied up in his current mortgage because he believes he will need to use those benefits in about 2 years from now. I don't know how refinancing would work in this case, because the title would be in my name, but I would not have an existing mortgage on that property. At that point I would have a history of rental income coming in from that house, but the balance of the loan would not be on my credit. What should refinancing look like in a situation like this? Would 20% of the loan balance need to be brought to the table, since this is technically a new mortgage in the eyes of the bank? My alternative to this would be to sell the house if refinancing at that time would not be an option. In this case, I would not lose any money, so it is a reasonable exit strategy if it comes to that.

My other concern is finding someone to facilitate the whole process.  I can find the paperwork to use and fill it out and everything, but I wanted to try and get a handle on what other things are necessary to make the deal go smoothly and to minimize the risk we both take on.  I'm working on contacting my Realtor and perusing as much material as I can on this, but I'm determined to make this work if it can.  Any information is much appreciated!  This is an interesting opportunity for me to learn more about how a subject to works in detail while allowing me to get my hands on another rental property in the market that I like!

@Greg Hamer  Thank you!  I'm excited about the prospect of starting to invest here, but having trouble coming up with ideas on how to do so with my limited resources.  I'm about a month away from obtaining my Real Estate license and am considering using that to my benefit.

@Ali Boone  Thank you!

@Tim Jones Those are definitely solid ideas to consider and this post was drafted after having one meeting mentioning that specific idea.  Myself and the group are interested in anything that aligns with our goals, but our main concern is even finding the deal in the first place.  I don't know if I will need to start marketing or if I will need to raise our budget, but I'm open to any and all ideas.  I have not had much luck getting in touch with anyone with any useful information until your reply.  Any suggestions for a group of 4 with access to a limited amount of capital (<500k) that want to potentially flip a property?  The goal was to allow for one of us to start creating a consistent payment history to show to future lenders which is where the idea of holding it for a year came from.

I've recently come across an opportunity to invest with 3 other people to do a project in Monterey County(Which would be my first real investment in Real Estate). I have every intention of taking advantage of this opportunity as a way to get my foot in the door so I can continue to invest in Real Estate in the future. The goal is to acquire a house that is in need of renovations, do all of the construction work within 6 months, rent the house out for a year, and then sell the house. The reason for holding onto the property is to get myself in a position to qualify for more and more easily obtain financing based on my payment history. All of that aside, I have no idea how I'm going to find a deal that will even break even in my area cash flow wise for a year. Salinas typically does not have a best Single-Family rental rates and that's where a lot of the listings in our price range are. I would start trying to market ourselves to generate some deals but I'm not in a position to know whether or not the partnership will last past the first deal and I will even be able to handle more than one deal coming my way in the near future. All that being said, does anyone have any ideas on how to start looking for a deal off of MLS? Should I start marketing and figure it out as I start finding deals? It has been just over a week since the proposition and financing fell into my lap and I'm trying to find the best way to go about this so I do not fail on my first flip like so many do. Thanks for Reading!

I have been interested in Real Estate investing for several years now and after reading several books and buying a house in Colorado when I lived there, I am looking to learn more about the market in Salinas and surrounding areas and invest in the next year.  In the mean time, I am listening to the Bigger Pockets Podcasts and working on getting my Real Estate License to become a Real Estate Salesperson.  I am interested in all different types of Real Estate investing and am still formulating a game plan that fits with the way I want to do things.  I am currently focusing on gathering several rental properties (most likely single-family) and transitioning to flipping by reinvesting the income from the rental properties.  My ideas have changed a lot recently each time I get more and more information, so we will see which direction I head.   I would like to learn as much as I can and network with other local Real Estate investors in my area.