All Forum Posts by: William C.

I got confirmation we can use his spot.  It's about a mile from the Lansdale/Harleysville exit on the Northeast Ext. (first exit going north from Plymouth Meeting) 

I did want to find a spot closer to Plymouth Meeting or Conshohocken but this spot is available and only about 15 minutes from the mid county rolls.  It would also be close for anyone coming from north of us like Perkasie, Sellersville, Quakertown, and maybe as far as Allentown.

Who is still in?   I'd be willing to meet as soon as the next 2 weeks.  We can accommodate 50 people easily if it were to get that large.  We'll also get to sample some of the new brews they have fermenting.

Reply to the post if you want to come. Also mention towns near you so other members in your area with alerts set up will be notified.  I set a date with at least 10 confirmed attendees.  Let's do this.  

Lastly, just picked up another flip for around 100k. Ambler area, 450k ARV. Interested in bringing a few newbies along for the ride, or on as partners if they are able to add value in any way possible. This meetup will be a great chance to go through the details

Of the deal and hopefully we can find a good fit or 2, or 3. 

A common misconception of consumers is that the "amount owed" or the mortgage remaining on a property has any relation to the amount it sells for. It couldn't be any further from the truth. The debt owed is completely irrelevant to what the property is worth, or what the bank will accept as a offer. This is true for foreclosures, or distended sales. I do understand the few times where a seller will accept $X because the mortgage is $X and he'll be out of it free and clear, and even then it's most likely a mistaken to do so. My point is value is determined by many things, and the amount of the debt owed is not one of them. Regarding the deal the OP mentioned, chances are it's too far down the road to slide on and steal it for $35k unless that's what it's worth. Banks might be big and slow but they aren't dumb, nor they car to carry a property for month after month waiting for a fair market value offer. Too many buyers assume they must be dying to unload it since they aren't in the real estate businesses but the truth is they follow the laws, foreclose on the property, and sell on the open market. That's not to say you can't find a deal at that point, you certainly can. Just realize banks aren't giving $100k properties away for $35k because that's the current balance of the loan.

Great podcast, I'm looking forward to see how big you are by your 4th podcast. I see how you find the deals you buy. I'm curious how you find so many willing and able buyers? I'm sure at this point it's a lot of referral based, but early on how did you find new investors and what do you still do now for marketing to out of state buyer? Thanks!

My interest rate is 4.6%, but my first payment is $995 interest $519 principal. As I noted above where I wrote 4% I meant 4.6. So is it the 360 day thing?

Correction the interest rate is 4.6%.

Can anyone explain why the numbers are different when I run an amortization schedule through a calculator than it is in real life. For example we borrowed $236k at 4% and a 20 year amort. Any calculator I use shows a payment of 1505, first month $904 interest and $601 principal. The real life mortgage statement came and its $995 interest and $519 principal. What am I missing? All fees were paid at closing with the proceeds. So the mortgage balance is $236k to start. 4.6 is the interest rate, not the APR. Why aren't the numbers matching?

The confusion seems to be the difference between a "cash out refinance" and a "rate and term refinance". And where there might seem to be a contradiction. The 2 are different, and have different guidelines for underwriting.

Also the point I was trying to make with the example of the property that would not sell for $250k but appraised for $280k was that when you refi a property the appraiser uses comps to find a value. The comps might support a higher value than buyers are actually willing to pay. The appraiser doesn't have a contract to use as a starting point, or More accurately an ending point. The point I was trying to make was that by doing the BRRR you might actually get a higher appraisal than the market would actually yield, and you could pull more cash out. The whole goal of this plan was to cash out as much equity from each property as possible, right? If that wasn't the goal, what was?

But your not actually "selling" the property if a shill LLC was coming in and buying it from you, right? The plan would be to continue the plan until each of you own a few properties. The properties you would end up with would be financed to the gill.....My point is that your isn't at all different from BRRRing, except for maybe being able to get a little higher LTV on a purchase rather than cash out refi. Why not just try this plan and refi Than sell? Maybe I'm missing something. As I read it, Guy 3 would buy the property for a price at or above market value, and have a loan out for that amount minus down payment.

It's a real site. Iv used it to help at least 5 clients purchase a property. I can't guarantee there isn't any shill bidding going on though.