All Forum Posts by: Tim Vecchioni

Some good info in this thread! Especially from Paolo Ruggieri !

@Jeremy P. and @Jason Hirko

Thanks for the responses and you both have valid points! I guess I would be looking for a way to use my LLC that I have created, which takes me away from some of this. However, that doesn't mean they aren't possible but I think my question has been answered throughout the thread so thank you!

Originally posted by @Jason Hirko:

@Tim Vecchioni Any HML that offers no money down is either a scam or could very well be out of business before your deal funds

 Wasn't talking about that...just talking about how Brandon Turner is always saying its possible! 

Originally posted by @Jason Hirko:

Originally posted by @Tim Vecchioni:

A lot of deals require a EMD. No problem. However, if you get that deal and put the EMD in, now it's on you to find the rest of the money. Plus POF are usually needed to even make an offer. Also how are you supposed to participate in an online / live auction without POF?

First off, if you are looking to an HML, you'll need to at minimum show liquidity to cover the down payment and fees, not just the earnest money. Second, most live auctions are cash-only. Some are generous enough to give you an hour to go get your cashier's check.

 Yes, which is not a problem to show them the skin in the game. However, it does take away from the little to no money down aspect of it eh!? However, after I look more and more into it, you will need some money to get started and as you build the relationships, it seems to get easier. 

So I am finding my first problem. The fear of finding a deal and not being able to finance it. A lot of deals require a EMD. No problem. However, if you get that deal and put the EMD in, now it's on you to find the rest of the money. Plus POF are usually needed to even make an offer. Also how are you supposed to participate in an online / live auction without POF? My question is in situations where you need POF or to know the money will be there if a deal is found, how do you go about this issue!? Thanks!

Originally posted by @James Skelton:

Yes I am a GC, and a Realtor and an Investor. Where are you looking? Your market area? I am not sure how to do PMs on this Blog.

 I sent you a request but forgot the message, but now can't send you a message until you accept the request!

Also @Kenyo Henry I responded to your PM.

Originally posted by @James Skelton:

What does Investor Friendly mean anyway?

 I would say to be blunt, one that doesn't upcharge out the *** for ignorant people that don't know the real cost of materials! So basically someone that comes in cheaper than regular contractors who work for people who don't know anything!

I will shoot you a PM with my number and email. I communicate either way. And yea. Looking in Anne Arundel County to stay close to home as I will most likely manage my properties to start. What's your experience as a GC? Can answer that here for others to see if you want or via text/email. 

Originally posted by @James Skelton:

Hey Tim, how about a little more info on what types of projects you will be doing?

 Hey James.  No problem! I am looking to buy properties that need full rehabs. Most likely full guts in some cases. But sometimes just simple cosmetic rehabs. I am looking to buy and hold but have no problem flipping a house if the circumstances show themselves. Are you a GC? Feel free to ask any questions you have. I am still looking! 

So this is what I received along with the address.

"

4br/2ba

Cap Rate: 13.8% + 60k equity

Income Analysis

Listing Price: $120,000

Total monthly projected rental income: $1800/mo

"

The property sold for $35,000 via public record.

The rehab according to the turn key company is around $60,000.

According to the contract, they will have the rehab done in 60 days from settlement. 

Comps in the area are $165,000+. Closer to $175,000+ but when I crunch numbers, I crunch them worst case scenario. I also looked at rent in the area and his $1,800 does seem to check out, but I put $1,600 to be safe. Here is what I came out with. 

My thoughts are. Get in with an HML, hopefully at a 90/10 split with 3 points at 10.5% interest only. I put 3 months for rehab as well as time before refinance, again assuming the worst. If the house only were to appraise for $165,000. 70% of that (for the new loan) would be $115,500. I would be out of pocket $4,500 + HML Interest, points. However the higher it appraises. The less I am into this property and it is a potential BRRRR that is basically done for me. Aka turn key. Sure I lose out on say $30k in equity. But worst case scenario since I am looking to buy and hold. The cash flow / ROI is way too hard to pass up! If I WERE to get $1,800...this is a grand slam!? Am I missing something here!?