All Forum Posts by: Tessa Rysztak

 I am well versed in the wait periods times. The question I was asking is when does that clock start.

Kind of a long story. My husband has a foreclosure from 2010. The sheriff's sale was in April 2010 and the deed went from his name to the bank of April 28, 2010. There was a 6 month redemption period, and the county has another Sherriff deed transaction listed on their website (but there was no deed transfer as it had already happened in April) on October 28th 2010, it says "to lending institution" in the notes. We are in Michigan.

We have found a new property for our primary residence and want to keep our current residence and start renting it. We have a verbal acceptance on the new house. With us leasing the house from January until May 1 of 2017, which I believe would put us past the 7 year wait for conventional. Our mortgage broker keeps saying it would just be easier to list our current home and go FHA. The sellers wants a preapproval letter before they will sign the papers (which I totally understand). We can get an FHA preapproval, but not conventional until closer to the end of the 7 year wait, from what our lender is saying.

So my first question is, is the 7 year wait for sure from the date of the sherriff sale? It's hard to find a definitive answer on this.  I don't want to get to April 1st and find out we can't even apply for the mortgage until April 29th.

Second question is, can we get an FHA prespproval and submit that with the offer, but change to conventional financing before we close?

Thanks for any insight!

I'm looking at a property that was listed in October for $8K. I wasn't looking at it at that time, so it's possible that the $8K was an auction starting price.  Since then, the price has jumped consistently between $29K and $52K. The price changes about once a week. Is this realtor just trying to keep it on "new" lists with constant price changes? Why the huge jump and drop in price? I'd like to go in and offer the $8K and see what happens. 

Also, is a realtor going to feel it's worth their time to work with me when I'm looking at properties in this price range? ($8K)

DH and I are ready to start flipping houses, but trying to figure out financing.  Right now, taking out a mortgage isn't an option for us, and we don't have the cash built up to purchase something outright.

We have some close friends that have always been interested in getting into real estate investing, as well. One friend has plenty of ability to get a conventional mortgage, his DTI isn't tapped out, etc. So we are discussing partnering with him. He is out of state, and we would be doing everything but actually financing the property. We haven't ironed out all the details yet, such as what his take in the deal will be.

Will this work?  A couple of high level questions that have come up so far: How would we structure the deal?  would he just 1099 us for all the works and expenses?  Our profit would be from the work and whatever take we agree on would be left, and he would be taxed on that?

Or is this logistically not really an option?  I don't think I have read about anyone doing this before.

Thanks for the quick replies :). 

I should have mentioned, I am looking at using Hard money for flips, not buy and hold.  So no need to worry about refi's, unless the process goes horribly wrong.

I have a logistical question, I cant wrap my head around how this all works.  

I keep hearing and reading, "If you find the deal, the money will come".  So how do you SECURE the deal, while looking for the money?  Do you just put in an offer contingent on financing?  Or does that only work when using mortgage financing?  In our current situation, we are looking at hard money or possibly a private investor.  When we have purchased personal residences in the past, we have always submitted a loan preapproval letter to our realtor and that was included with our offer.  But you can 't really get a preapproval for a hard money investing deal.  And I know that, in general, by the time I can find the money, the deal will be gone.  

Please help clear this up for me!

@Darrin Carey Thanks for the information.  I kind of thought thats what they were looking for, I can't see how it would cash flow at all.  I can't imagine they are getting more than $500 per unit for rent, but I guess I could be wrong.   It does seem that, in general, when land contract terms are spelled out right in the listing, they are asking for payments that are way too high.

I appreciate all of your information and insight, thanks for taking the time to reply.

This is my first "real" post.  I hope I'm putting it in the right place!

Im looking at starting out with a few small multi family investments, with seller financing. Right now, I'm working off the MLS. One of the homes I am interested in gives the financing terms right on the listing. It's listed at $39,900. It doesn't say what the rents are currently, so I know that I would need to find out that information if possible.

The terms listed are "Land contract options available ($5000DN/7.5%/$750.00/3yr payoff) Subject to buyer's credit report and/or proof of funds". Is the $750 they are referring to the payment they are looking for?  I can't figure out how they are coming up with this amount, if that's the case.  I'm hoping someone worth more experience can shed some light on this for me.

Thanks!

Hi, my name is Tessa. My husband and I are still in the research phase of our journey.  We have completed one fix and flip, of sorts.  We lived in a property for three years while totally overhauling it.  We made a nice profit, and learned a lot along the way.  We did almost all of the work ourselves, and for the most part, enjoyed the process.  

We are looking at doing a combination of fix and flips, and purchasing multi family units.  I'm working on learning a lot of creative finance options, he makes a good income, but we also have a lot of expenses, so not a lot of liquidity to invest with.  I am currently working on getting my realtors license, as I think it will be a way for us to realize even more profit.

I have already learned a lot from BP and can't wait to learn more and network!