All Forum Posts by: Tamara Deering

@Libby Baugher

Don't pull it out, you will incur fees and penalties. You can transfer it to another 401K - look for one that will let you borrow against the balance, or put it in a self-directed IRA that will let you invest in real estate type transaction. J Scott suggest putting self-directed IRA's to use on tax generating assets like hard money lending or notes. I hope that helps.

@Hobart King

I would buy it, finish your flip and hold the property until you know what to do with it.  If you could wholesale it great, but I don't think that is likely given what you have described.  I think you will be able to build on it sooner than you think.  

Great find by the way.

@Arpit Gandhi

Honestly my head is spinning from the list that you have published.  First of all your Agent is a fiduciary and it is their job to act in your best interest at all times, not theirs.  Are they the managing broker in their office or an agent in the office?  If they are an agent speak with the broker immediately, give them the list you produced.  2.  I have never heard of a mortgage broker stating anything about a hit meaning their won't be any profit for him.  They may think it but they usually don't say it, in my experience brokers are paid by the loan so even if the profit is not that big it's still money in the bank.  

My advice, go to the Agent's broker, if he doesn't have one go to the board of realtor's and ask for assistance, there are strict rules for fulfilling dual roles in a transaction. 2. Find another mortgage broker immediately you don't need to advertise that you are looking just find one and present the scenario and see what they can do.  Most will give you a commitment in 48 hours and can close in two to 3 weeks.  If necessary use an online service like Rocket Mortgage, the biggest risk you will be taking is a hard pull on your credit may affect your score, it is not supposed to because it is for the same transaction but sometimes mistakes happen.  3.  Please never put all your eggs in one basket again, an Agent may have suggestions of people they work for but they are not supposed to say use this guy especially if they have a financial connection.  There is too much opportunity for kickbacks and malfeasance when one person is touching all of the pieces of the puzzle.

@Shawn Coverdell

I sincerely hope you're being sarcastic.  Everyone has a chance to invest in real estate and improve their life no matter their age.  Life happens, savings get wiped out and you have to be able to pick yourself up and start over.  Hopefully having learned lessons along the way to make your rebound easier.  Life doesn't happen in a straight line.

If you have some funds available you can do a hard money loan.  You may also be able to get a loan from your 401K if you have one.  Finally, you can make an offer on the property contingent on the sale of your existing property.  A contingency is a drawback so if there is a lot of competition for multiplexes in your market you will have to sweeten the deal somehow.  You can also see if the owner is open to an owner finance deal.

Ti,

Welcome.  Tax Sales are an aggressive strategy for new investors.  Typically you need cash up front or within 30 days and they come with a redemption period and a lot of competition.  Make sure you know all of the rules for the sales you are attending, don't overpay, don't over-improve before the redemption period and go out there and kick some butt.

Let us know how it goes.

@Keith Odom

Even with wraps, sub-to's, owner financing and every other type of deal out there. No money down is a bit of a misnomer. There are still fees for attorneys, title insurance, closing costs, surveys, appraisals, etc. The deals that people need to get for no money down hard-money loans are true unicorns, the LTV has to be phenomenal and many of the syndicates are only lending 90% of cost.

@Randy Coker

Personally, I would get a new owner/occupant loan, house hack the new property for 1-2 years while renting out your primary residence, and keep getting new owner occupant loans like that as long as the banks will let you. Once you've maxed out those loans then start looking at refis or HELOC's. Texas has some pretty strict requirements on HELOC's that might restrict your future options so you may want to investigate cash out refis instead but you should talk with your mortgage broker about the pros and cons.

@Jarren Durbin

You should be able to get one hard money loan for the acquisition and remodel. If you can't tell what needs to be done to the home, assume the worst. If the house is worth $550K fixed up and the acquisition and worst case repairs total $400K you are looking at an ARV LTV of 72%. There are lenders that will loan up to 75%. Put your numbers together with a rehab budget and start talking with hard money folks. If you are going to flip you are going to need to move fast and you are planning to resell anyway so make it easy on yourself with one loan.

@Account Closed

What do your numbers tell you?  I heard a podcast guest say opinions are like ears everyone has two.  If you have done your due diligence and new construction multiplex in the outer areas will cash flow and give you the return you want then build it.  If it doesn't don't.  

If you are looking to develop investigate opportunity zones.  Another thing to consider are condo schemes.  In Austin, TX there is a scarcity of affordable housing so the zoning was changed to allow accessory dwelling units on city lots that meet a certain size.  What developers are doing is buying these lots, putting a condo in place, fixing up or tearing down the original structure and selling the two properties to separate buyers.

In my opinion it is time for you to get off the boards and start doing real market research and studying the zoning rules where you want to build and come up with the strategy that makes the most sense for you. If you can't do the numbers or they don't work you are setting yourself up for failure.