All Forum Posts by: Tyler Deck

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $3,500

Purchased for $35,000 with $5,000 down and a $35,000 hard money loan to cover the rehab costs. After a month of minor rehab, the property was handed to a property management company, and refinanced doing a cash out refiance at a local community bank before the property was even rented. The property appraised for $77,000 but the bank could only do a 65% LTV. This leaves a PITI of around $577 and a net cashflow of just over $200. Initially an investment of around $10,000 in rehab and closing costs. Less than 2 months later and I have all my money back plus a few hundred dollars and a cash flowing rental property!

What made you interested in investing in this type of deal?

This was my first time using hard money!

How did you find this deal and how did you negotiate it?

The mother of a friend of mine passed away and the children didn't want to keep the property.

How did you finance this deal?

Hard Money. My terms were $5,000 at closing toward the principal, 2% points at closing, and 12% interest deferred for 6 months.

How did you add value to the deal?

The bathroom needed a new floor, new drywall, and new toilet. The home also needed some appliances and a good cleaning!

What was the outcome?

Refianced out of the hard money loan, and currently netting a little over $200 per month with property management in place.

Lessons learned? Challenges?

Be prepared for your refinance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Loan Ranger LLC- My Lender!

I hope I got the point across in the title...

I hate working with underwriters at the bank. I'm currently refinancing a hard money loan quickly in order to make my DTI numbers work for an FHA loan purchase I'm making for my primary residence. It's terrible.

Honestly FHA asked for less information than my local community bank has for the refinance. Let me throw in that at the last minute (less than 5 days before closing) that they could only do 65% instead of 80% promised by the loan officer only days ago, but I digress.

We all (I assume) get those emails requesting documents and bank statements from the lender, then it goes to underwriting, and then they ask for additional documents and explanations of ridiculous things... SO...

How can I make the process of getting all my documents to the lender, and then MORE documents to the underwriter easier. What can I do as an investor to make life easier. Should I use one bank account for everything? Should I use one account for my WE and personal income and another for the business? I'm on 8 units and I know I need to get this down now before it drives me nuts!

Any thoughts?

First Post! Having trouble finding this answer! 

I'll make this part short, I'm looking for a 3-10 unit in PA, I have a list I bought and I'm hand writing owners asking to buy their property. Keep in mind, I don't know their motivation until they call/text/email me. I have sent out 44 so far and have had 4 calls, 1 text, and 1 email, I've viewed 3 properties and I'm going to look at a 4th today. On the others, I didn't offer immediately, one was out of state but the others took me through the properties, and they were in good condition, with tenants in place, which I expect will be the same today also. With the others I waited, wrote up an offer with a standard agreement of sale (I'm a licensed agent), and MAILED it to them, then called with the offer. All were declined without a counter, and they really were my highest and best offers, which I knew were a long shot. 

Lets get to the question- When and how do you submit offers to your sellers? Do you present multiple offers with different terms? If they decline, how do you follow up, if at all afterwards? 

My plan- not sure. I am about to refinance a single family, which I used a HELOC to purchase, so I have a HELOC on my primary and SOME cash. If I was buying one of these and NOT making it my primary, I'd use hard money if I had to or see if I could get a conventional mortgage for it. The one I'm looking at today I think I'd use as my primary, so I've considered locking it up contingent upon the sale of my primary residence also, just for some context.

THANK YOU IN ADVANCE! 

Josh we should grab lunch one day next week, I'd love to hear how the sheriff sale went! What surrounding counties are you considering?

Hey Josh! I LOVE your plan! I've been a licensed agent in Lancaster for about a year now, and just closed on my first rental. I'd love to hear more and see where in Lancaster you're thinking of buying! My goals are a little more conservative but are on the same track. 

Single family? Multi Family? Commercial? 

This is my first post on the BP forums!!! The SHORT version is- who would give me a 30 year term loan on a $39,000 row home? After about a year and a half of studying, and becoming a licensed agent and getting some of those deals under my belt it was time to buy a rental! I bought a $39,000 single family row home in Columbia Pa. I've put only a few hundred into it so far and will do carpet and flooring and have it ready to go! I used a HELOC secured against my primary residence to purchase the property. I recently learned of Delayed financing! (didn't we all learn it for the FIRST time last week on the podcast lol) So I understand it would have to be 75% LTV, and my math was done expecting to hold it for a year but I LOVE the fact I can get financing on it now. My question is- who will loan on a $39,000 property!?! I've spoken to 3 mortgage brokers, my bank and my credit union. All have a $50k limit. I appreciate any help, and I'm happy to be a posting member of the BP forums!

First post, but I've listened to (literally) every episode of the podcast! I already love BP, and I have for a while! I work 3 days a week as a Paramedic, and I have 4 days a week then to start my new career as a Realtor with Keller Williams Elite in Lancaster and I'm working with my Dad to purchase our first rental property in the next month or so! I'm excited to join my local REIA group, and I'm having lunch with an investor friend of ours next week too. I'm looking to put in some sweaty equity on my first purchase. I just finished remodeling my kitchen and I learned a ton and I'm ready to begin working on an investment! Maybe I'll post this here... my father is willing to invest $20k, and I have about $5k to invest now after just finishing my kitchen. My plan is to purchase a SFR for around 30-60k (assuming all the numbers work, thank you BP!) and make sure it cash flows. My first question! So if dad is willing to go in for 20k and I have 5k, should we do conventional financing to purchase something and then refi out of that after repairs? Should we go the hard money route and then refi? My goal is to give my dad at least a 5% return, but in the end have the property be mine and cashflow. Thoughts?!? THANK YOU IN ADVANCE!