Yeah! I just closed on my second property this morning!

And it gets easier with each, doesn't it?

You deserve the time off. (we'll just see how much you can stay away from REI for a whole month. LOL)

VERY happy for you,

Rina

Nice Job..It pays to be a calulated risk taker.

Nice Job..It pays to be a calculated risk taker.

Thanks! Yeah we will see, it does become like an addiction...but a good one! You guys have been great and I look forward to MANY more in the coming year!

Nice job Angie.. When you get a chance maybe you can tell how you did it, especially in another state. Did you use bank money, seller financing, lease options???

I too am considering investing out of area - so you are a great inspiration to me! Thanks - and enjoy your travels!

Sure I can tell you. I took out a home equity line of credit on my home. I use it make offers and if accepted then I write a check out of this line of credit. Once I have the repairs done I have my property management find tenants. Once we have signed leases I do a re-fi into a 30 year traditional fixed mortgage.

I put together my team by calling around and finding a realtor I liked. It just so happened that I called mine on a listing she had. We got to talking and I explained what I wanted to do and she wanted to be on board. She would send me listings for what I wanted and I would go through these lists until I found one where the numbers worked and was worth looking at. She is my eyes and we do everything via e-mail, pictures, overnighting docs.

I also located a property management company who was comfortable working with out of state investors. I got my attorney through my agent and love him. He does my closings on the properties as well as the closings for the re-fi. I got a list of re-fi people from agents, attorney other investors and cold calls. All in all it took about 25 interviews before I would finally find one who didn't have a seasoning period for the appraisal on the re-fi. Very frustrating but if you stick to it you will find someone, don't listen to the people in authority at the banks that tell you it's impossible. Anything is possible. So this is how I found my re-fi lady and I love her. The contractors I found by word of mouth from agent and other investors.

If you want to do it you will find a way to make it all work. Dean's book is a great resource to find an area that you want to start your REI business as well as others on this web site! Good luck. Hope this helps.
Sincerely,
Angie

I forgot to mention. The re-fi is 100% of the banks money. On a single family or duplex you will have a 80/20 and a triplex or fourplex 70/30. So the key is to buy it at least 20% under including your repairs so when you go in for your re-fi it appraises at that much higher. Then the check you get back will cover your cost for prop plus repairs and you can pay yourself back in full and repeat.

You are amazing! Man I love it. Great job!

Hi,

Thanks! Can't wait to get the repairs done and the tenants in so I can re-fi! See ya!

Ang

Nice job!!!! You're well on your way to the Millionaires' Club!!! I can only wish you the best!!!

Thank you for sharing your success, it is truely inspirational!!!

Angie, you did great. Keep up the good work and happy investing.

Sandra

Thanks for sharing the details on your deals. Excellent information.

Great Job!!! Do you have your first deal fully rented out, and how long did it take for it to be rented?

Thanks,
D

I just bought my first property using this method, but must have done something wrong. What did I do wrong? I also did a HELOC loan, made the offer and used the HELOC loan to pay the 20% because the bank would not loan me the 100% on the investment single family home.

How do you get the bank to let you borrow 100% of the appraised value. They would only let me borrow 80% of the amount that I paid for the property, not its appraised value which was 30% more.

What did I do wrong. I want to do this again, but it didn't work exactly the way I wanted this time? I need 100% bank money. My husband isn't comfortable with me using the HELOC funds.

I'm fortunate because we settled last Thursday and my tenant moves in on Friday of this week. Yes 8 days from settlement date - YEAH..... and we will be in a positive cash flow from the beginning, but it was simply beginners luck, I'm just not comfortable with this yet. HELP!

Angie knew her figures before going into this deal...that is the key to winning at REI!!!

The property comps at 110k she got it for 67k plus 7k for repairs. She is in it for 74k. She fixes it up gets it apprised for the 110k and does a refi at 70%. 70% of 110 is 77k she got 100% of her money back!

make sense? if not please ask....

D

paying cash first (throught the HELOC) and not having an appraisal done until AFTER the rehab, at re-fi time. (Angie, correct me if I'm wrong)
Her 100% bank money was less than the 80% of appraised value, so she got all her money back. AWESOME! I have done the same thing a couple of times this year, and I just talked to a mortgage broker today who says they are still doing them WITH NO SEASONING. Like Angie said, just keep looking 'til you find what you need.

Rina

Great job and keep it going! Thank you for sharing your success and the details of your strategy with us!

-DGadmin

I need to find a lender who will refi based on appraisal without seasoning. I'm closing on my deal this week. Do you know the name of the lender so I can pass it on to my broker?

Thanks, Al

For sharing your details! Great going and great information! I guess you knew ahead of time that the rent would exceed the payment on the refi? Math was never my strong suit but I am learning so much from you and everyone! Thanks again!
Laura

Are you saying the you can still acquire a mortgage at 100% financing from the bank. Do they require a particular credit score. With 100% financing, do you still get back cash at closing. Need some clarification, thnaks.

Sandra

AFTER rehab, if your numbers worked in the original deal, you can pull out 100% of your money invested by doing a re-finance. There are no-seasoning conventional loans, but if you bought a property that was listed on the MLS or openly marketed, you must be able to show the $ amount of repairs done in order to justify the new value. If any other kind of transaction, they will go strictly by what the new appraisal turns out to be. This is what I was told today. Pretty nice!

Hope that helps.

Rina

Angie, your deal is yet another excellent demonstration of how to get deals done with "NO MONEY DOWN", Nice Work, SULLY

Great post Angie! It goes to show you that you can do anything in real estate with the right plan, the right strategy and with the right attitude. I just closed on my fourth home last week. Great job and thanks for sharing your success story with us.

Lloyd

I inherited one tenant when I bought the duplex and only had one to rent out. After a couple of weeks of repairs it took about 2 1/2 weeks to rent out the vacant unit. It probably would have been sooner but we had a problem with the ad lapsing and construction at the end of the block during showings. The inherited tenant is moving out toward the end of the month. My manager will be doing showings while they are still living there so hopefully we will have only a few day turn around to clean.

I use a property management so they are pretty motivated to get them rented so they can start making an income off the units. I always factor in management costs when looking for a property, as well as vacancy and maintainance. This way if it cash flows after all that I know I have a good one!

Plus, I would use a property manager even if they were located in my backyard. I alliviate a lot of headaches such as trying to find renters, collecting rents, and repairs. I highly recommend it to anyone wanting to invest in rental properties...It gives me FREEDOM... and isn't that really why we are all here!

That is exactly how I did it so thanks for explaining to those who asked. I havent had a chance to get online the last two days! Moving and a shakin baby!!!

What number to you use in your formulas for the management part of costs?

Rule of thumb 10%, but you can always try to negotiate down:)

It's tough to get re-financed these days. I called my banker and he said NO. You must have a great bank.

I called 25 banks and got told no by the first 24...I just didn't let the "no's" stop me from getting what I wanted. Keep trying and good luck!