All Forum Posts by: Travis Nebeker

@Jake C.

That makes perfect sense. Have you done any similar deals on rentals? I would prefer to keep the deal as a rental. Using the BRRRR method I would pull out the costs and borrowed money plus interest in a conventional loan once rented. Assuming I keep the rental I would want a clean delineation between the reimbursement and the rental income.

@Jake C. - Yes I am open to that, unfortunately the only high net worth individual I have in my network currently is the owner of the company where I draw my primary income, so it may be a bit close to home. I have never done a cash deal or any deal outside of conventional financing, so I am a bit green in this area. In your experience, what would be an attractive return in this market? I would assume it is 10% or above for a first deal? Also I am unfamiliar with the term "first money out" but assume it refers to an assurance of the first portion of the refinance/sale to go to that individual?

Thanks!

-Travis

Thank you @Andrew Postell and @Roman M.. The intention would be to perform title search prior to attending the auction to reduce liability. I understand the ability to close may not be possible with Hard Money. I may be able to qualify for a personal line of credit based on a credit score over 800 and strong income from my W2 job, but the amount properties sell for in my area would require a rather high amount for a personal line. I have seen deals in my area go as low as 75K for a single family home, but they are rare and that would be over 150K below ARV in my market. Getting a personal line that large seems like a long shot. It sounds like I may need to focus on doing some deals off MLS or wholesalers until I can get a bigger nest egg saved up unfortunately...

There may be a stipulation that allows payment within 24 hours with a deposit...still trying to find out if that is applicable in our area. 

I am looking to purchase rental properties at foreclosure auctions. I have no problem obtaining conventional financing, but cannot close fast enough to utilize that as a funding source. I have done a conventional live in flip on a higher end property, but have not purchased using hard money before. My intention would likely be to BRRRR the property/properties purchased at auction. I have a conventional lender lined up for the Re-finance and a 10% downpayment.

I am curious if any members have experience using "Hard Money" to fund auction purchases or if it is even possible. The auction type is in person and the funds are required at the  close of the auction in cash or cashier's check. 

I am hoping to make offers on a few vacant properties that I have found with absentee and/or probate owners (not recent probate) using the direct dial method. I was wondering if someone with more experience can comment on how the strategy would be modified, if at all, by the holidays? I know the holidays can be a sensitive time for people, especially those in tough situations. I would like to be sensitive to those sellers as well as maximize my margins in the deals. 

Any advice or guidance would be welcome and appreciated!

Thanks,

-Travis

Thank you all for the warm welcome! I hope you all had a relaxing holiday! I am starting out the new year with big goals and big family plans. I can't wait to hit the ground running. 

@Austin Youmans 

Thank you for the info! I did not know that commission could be applied to the down payment. That alone seems like it would make it worthwhile. I will keep working my deals, but in the meantime I will probably get started with my courses. Do you have a recommended resource for getting your required training hours (60/30 in washington)? 

@Jesse Rivera 

Thank you for the warm welcome! I am aware of the REIA meeting coming up on the 4th, but as of now I am being committed to be in central California for my W2 job. Are there other local gatherings/meet ups that I should be aware of? If so can you recommend some? I am always open to meeting like minded people and helping out wherever possible!

Happy Holidays!

-Travis

@Austin Youmans,

Thanks for the reply! Did you find getting your Brokers license to be of benefit on your first deal? Would you recommend that I make that my first step or just jump in?

 I will probably have lots more questions pop up, but for now it's just about finding the deal. 

Cheers,

Travis