All Forum Posts by: Tarik Larue

I had some issues with my personal debt to income ratio and my credit score needed improving since I'm going through conventional financing. It should finally get done this month through a local mortgage company.

Hey Nick. Hard Money Lenders can charge 12-16% and up to 5 points. I know that sounds high but remember these are fairly small loans. Also they don't require lots of paperwork or even great credit. I only use them for 6-8 months because the regulations require 6 months to do cash out refi loans. If I just wanted to refinance the mortgage then I would get out in 3 months. Conventional loans take longer to close and they won't consider fixer uppers. It's a great way to start and they can evaluate if you have a good deal or not. 

That was an excellent response, @paula pant. I will definitely be using that strategy up here in the Baltimore area. The only difference that I could suggest is possibly using HML or peer to peer loans for the purchase and then refinancing into a long term conventional loan if you want to grow faster. I bought 2 properties using mostly hard money loans so I only paid closing costs and the 10% down payment. The first one is rehabbed, rented and going through the refinance process. Now I can rehab the second while I start shopping for property number 3. The cash out refi from the first is the capital needed for paying off my HML and getting another rental. I would definitely start with 2-4 apt multi-units, if possible.

Some prefer to get free and clear properties but I'd rather use leverage to take advantage of the current market while I can. If I continue working then I can always apply cash flow from the multiple properties to pay down one mortgage faster. My goal is to have 10 units or $5000 monthly in passive income. At that point I can focus on larger multi units or perhaps rehabs. Thanks for starting this thread. Highly educational for me. 

Hey Jeff. If I started with that kind of bankroll then I would look for some vacant multi units to fix up before I start rehabbing flips. Currently I started with buy and holds in order to supplement and then eventually replace my job income. My suggestion is to partner up with an experienced  rehabber in your area and put up all the funding for 50% of the profits. You should have no problem finding a good mentor if you try this  approach. Also look for a good investor friendly R agent to find you some good prospects. Also start networking with wholesalers and tour properties to learn what needs to be fixed. It doesn't hurt to line up some bank financing but I would only use it for emergencies. Good luck.

Good work Todd. I'm a fellow Baltimore investor who buy rentals from the Fannie Mae REO website. What other HML companies did you consider and why did you ultimately choose EZ lending? Also could you recommend any books, programs or websites that were helpful in preparing you for this flip. I am currently saving up to buy my first retail flip. Would love to learn more from you. I was actually looking at some properties in Dundalk but wasn't sure if it was a good area for flips. Glad it worked out for you.

Greetings BP family,

I'm currently rehabbing my second rental property in Baltimore, MD and need advice on removing a large oil tank from the basement. How have other people handled this in Baltimore City? Is there a company that specializes in tank removal? There's no rear exit so it may have to be cut and brought up a narrow stairway. Thanks for any advice.

It just made sense to me. All my friends and coworkers buy theses expensive houses and work like crazy to make large mortgage payments. I knew it was smarter to buy and rent houses so that people could pay the mortgages for me. Now that I finally did it those same people want to partner with me. Most people let fear stop them from even trying. My long term goal is to generate enough passive income to replace my working income and become self employed. I realize that you can never make enough or save enough when you continue to trade your time for dollars. Good luck to you.

Hey Patrick. I have two companies that are interested. A bank in California and a local mortgage company, Freemont. They both said I had to wait 6 months which means early June. I will post an update when it's complete. 

Hey Steven. Unfortunately cash flow properties are nearly nonexistent in the current Metro DC market. You have to go pretty far out like Woodbridge, VA or Waldorf, MD. I would also explore Prince George's County ie....Hyattsville, Mount Ranier, Beltsville, Greenbelt and College Park. They had a ton of foreclosures and are still recovering. Good luck.

@ben 

@Ben Leybovich Apologies Ben. I meant affordable not cheap. Especially when compared to those outrageous GURU seminars, boot camps, bus tours etc....