All Forum Posts by: THU NGUYEN

@Kevin Longeuay, I had 2 contractors quote me for the rehabs and decided on one. The initial repair quotes by the wholesaler is pretty close to what the GC quoted. The rehabs were minor: paint/carpet/tile/laminate/counter tops/sidings. The houses I bought just need a little bit of work, not too much. For newbie, I think that's all I can handle anyway. Buying from wholesaler is totally a new experience vs buying from MLS. You have to act SUPER FAST. My third purchase, from the time they blast out the deal via email, to viewing, to make a decision to buy...it was all within 60 min. I had to pay $4K over asking price because the wholesaler also had another buyer that wanted the house. It was fun but can be a huge risk of loosing your shirt if you don't know your numbers. I just wanted to get my feet wet so I am ok buying with $10K equity. Other experience investors for sure will not.

@Will Pritchett, Private loan is helpful because you can borrow 75% of the "Appraised Value", vs if you do cash re-fi, you can only borrow 75% of your cost + repair. I refinance as soon as I closed on the purchase transaction and not have to wait 6 months to borrow against ARV.

@Kevin Longeuay...All of my rentals, I borrowed at 75% LTV. I can borrow at 80% but it will cost more on closing cost so my broker doesn't recommend me borrow at 80% LTV.

I didn't do cash out refi, what I did was I gave me my cash to my family, who then loan me back so it becomes a private loan.  You can refinance as soon as the title company records the deed, the notes with private loan lender (meaning your family)...so I start the refinance process 4, 5 days after I close on the purchase.  It takes 3, 4 weeks for appraiser to come out and appraise your property so the sooner you kick off the refinance process the faster you can get your cash out.  Also the rehab would have been done already, 3-4 weeks later.   

If you are interested in reading more about this type of private loan, look up Matt Huber.  He wrote a very detailed post on this "friendly loan" process.  I literally copied his strategy and apply it for my 3 purchases.  I let the title company know this is my private loan which is a loan to myself with my money via a family member, same with my broker....also let him know so that there is nothing suspicious about it.   

That's so inspiring!!!!  Thank you for sharing.  

Having found BP 4 months ago, I spent many late nights reading the forums, listened to podcast on the way to work, on the way home from work.  I was very motivated and determined to get back into RE so now 4 months later I would like to thank all the BP members here and happy to report back the progress I have made  in the last 4 months:

1st house:  closed July 1, 2016, bought from wholesaler for $113K, rehab $10K.  Refinanced on Aug 19, 2016 for 30 years at 4.625% , appraisal came in at $135K.  Rented out for $1350/month.  Tenant moved in on  Sept 1.  

2sd house: closed Aug 8, 2016, bought from FSBO for $100K, rehab $1.5K, rented out for $1270 (including lawn service), tenant moved in Aug 13. In process of refinancing so I am anxious to find out what the appraisal value is. Houses in the same subdivision with the same sq, same year built is being listed for $125K.

3rd house: closed Aug 12, bought $134K from wholesale, rehab: $7K. In process of refinance but got appraisal report back today at $185K. My investment loan is usually at 75% LTV so that means I can get back $139K. I will have only $2K in the deal. Current listed for rent at $1550/month.

4th house: in contract to close on Oct 4, bought $120.5K, rehab is expected to be $5K top. ARV at at least $150K (being very conservative). Rent is expected to be $1450.

I have also done 3 private lending loans to other investors: 1 loan at 11%, 1 loan 12%, 1 loan at 8% and 15% of profits. 

I'm hooked, I have so much fun doing RE.  I guess I have found my calling.  I have fun doing it even if it doesn't pay.  I can't say that about my job...if I don't get pay, I wouldn't do it at all.  Will I be able to do RE full time someday?  That would totally be my dream job.  

Anyway, I have 2 rentals that I bought from builders more than 10 years ago.  Even though they appreciated but since I refinanced and got cash out to buy the properties above, cash on cash return based on today market is not great (6%).  I am trying to do seller financing to my tenants now on these 2 old properties.  We will see how that goes.  Owner refinancing would be something new to me as well.

THANK YOU BP members for helping out, answering questions for newbie.  I found a coach here at BP, Matt Huber and have met many other investors in person.   I am hoping to get enough experience to do a flip next. 

Will, I'm not responding on the subject of reserve but on the refinancing part. Thanks to a member of BP, Matt Huber, I was able to pull out 75% of appraised value, not purchased. I give my cash to my family, who then loan me back my money, thus this is a private loan. After I rehab, I refinance and got my cash out, leaving your equity as down payment basically. End to end takes about 7 weeks for me (from the time I close with the purchase, rehab, refinance, close on the refinance and receive cash back in term of loan - conventional).

Hi BP member,

Can you please tell me how Section 8 inspection works?  They told me that inspection is today....Do I just wait at the rental house all day for them to come?  That's what the customer service rep said...I was expecting someone to call me and let me know they are coming to inspect so I can come over and open the door.  Please tell me what is the process for inspection.

Thank you much in advance.

I have seen very bad case with Section 8 so I never accepted Section 8 on my rental. However, I'm beginning to change my mind and after actually visiting perspective tenant current residence (I know I'm being extra careful here but I don't want to take a chance on some Section 8 tenant destroying my property), I decided to take in one. Moving in date is this Friday... Will see I guess. This tenant stays at one house for 10 years, owner is selling the house, that's why she has to move.

Hi all,

Have you heard of America Housing Alliance?  I am interested to find out of any of BP members has experience dealing with this company? 

Thanks,

Thu

Hi Ricardo Rosales,

I would love to be like you and make RE my full time job.  Welcome.  I am new to BP but have connected with great investors to share/learn from them.

Looking to connect with you to learn more about Katy since I heard it's a great area to invest in.