Whole Selling In WA State (pre-construction)
I invest in preconstruction properties and hold them usually for 1-5 year, sometimes less depending on various factors.
So if anyone here lives in the state of washington and would like to do preconstruction real estate investment let me konw. I can also provide you information on how to get started, how the process works, and how you can make money on it. I would definetely like to hear from you guys.
I live in the SF Bay Area and looking to invest into preconstruction in your area. Please email me the details at **Please See My Profile**
Mateo can you be more specific on what details you would like to recieve.
Do you mean what properties are good investment for pre-construction or are you looking for information on how to do preconstruction.
Did you ever get an answer to this question? this is where I am now ,how can I get paid at closing with this promissary note.
I usually use an invoice from my company stating the amount owed for the transaction. I give that to the title company and the amount is shown on the side of the responcible party on the HUD statement. The title company mails me a check in the mail or wires the amount into my business account.
Laurie
[addsig]
How long did it take you to do you first two properties?
How did you find your first two properties?
Are you "both" considering quiting your jobs for REI or do you have a doesmtic partner that has a steady job?
I am a low risk taker. Have only had three jobs and three cars in the last 25 years. Never been a day without a paycheck. But soon I am quitting my day job for REI full time. But I have been in REI for three years and have renovated maybe 15 ?? houses have a full marketing campaign in place and have a full time employee. When I quit my job, my hours will be replaced with finding dealing and managing renovations. I do not perform any of the manual work.
Do you have a home equity line? Do you have a hard money lender and all your trades people in place? Can you move your 401k into a self directed IRA that lets you invest in RE.
Just throwing out ideas as I do not have the answer to your situation. But for me .... I would not quit my job after only two houses. And yes it will be harder to qualify for a conventional loan.
Brenda
When I was in network marketing they told us you can quit your job when your business allows you to bank your job pay checks for a year.
Timmax,
Nice to meet you. 60 hours a week? Wow, I am impressed that you have any time at all to locate deals.
I was laid off a month ago and have committed myself full time to REI (I still have over two months severance coming my way). I have several properties out of state but I have not been able to find deals locally, until recently.
It is definitely more difficult to secure funding without employment. You should get a business license now (or look into a Shelf Corporation) so that you are prepared when the time comes. My wife has a very high FICO that has helped us secure the local property.
I have learned that it does take a near full time commitment to find deals in such a hot local market. I am currently in escrow with a rehab (more like an upgrade) property that is in probate. I have been searching DAILY and driving around the neighborhoods. The deals around hear are thin but they are out there.
I see that you are also from Santa Clarita, what area? I am near Central Park (Saugus) and the property that I am purchasing is near me. I have a few realtors that are also searching.
Back to your question, IMO you should have a large cushion of cash to fall back on if you quit. Like someone else already mentioned, secure a HELOC if you have any equity (this is what I am using).
My dream is to go full time. I am only doing it now because I cannot find work! I have some interviews set up, though my heart is not there. I can survive by doing only 3-4 properties a year minimum. This should not be too difficult, but I have learned that you really need to dedicate the time in order to locate the deals.
I hope that this has helped. Only you can decide if you are comfortable going full time. It is risky but worth it! You will be forced to succeed!
Take care,
[addsig]
Lots of good advice everyone - thank you
are you talking about owning for such little amount of time, that there is no seasoning? If so you would only run into a problem when trying to take cash out. Even then you can find plenty of lenders that will still help.
I get a preapproval letter that has the name of the broker and states that the broker has already pulled the clients credit and reviewed their financials. This is just to get a more qualified buyer.
Then I call the broker or lender and ask them if they have any seasoning issues. I always use an example as the verbage throws them. I bought the house for 70k two months ago. My clients have a P&S for 150k. Will there be a problem as long as the house appraises for 150k? Then hang up the phone and call again to verify the answer with the next customer service person.
Typically, conventional loans will not have any seasoning issues. The sub prime or BC loans are more likely to have an issue.
With FHA, you can not have signed the contract within 90 days of you having originally purchased.
Brenda
I just bought a property (for cash) two months ago for $89,000 and put $5,000 into it for repairs. The appraisel is now $135,000. I want to rent the property out and do a cash out refi at 90% LTV (I have an 80% LTV offered to me, but I would prefer 90% LTV).
Anyone know of lenders who will do this type of loan without seasoning. The other glitch is that I currently own 30 other properties and I am running into investors who say they could do the loan only if I have 10 properties or less.
Quote:
On 2005-09-29 19:36, rlerman711 wrote:
I just bought a property (for cash) two months ago for $89,000 and put $5,000 into it for repairs. The appraisel is now $135,000. I want to rent the property out and do a cash out refi at 90% LTV (I have an 80% LTV offered to me, but I would prefer 90% LTV).
Anyone know of lenders who will do this type of loan without seasoning. The other glitch is that I currently own 30 other properties and I am running into investors who say they could do the loan only if I have 10 properties or less.
Greetings rlerman711,
There are a few lenders that might do this, especially if you can wait a month or two. While there are some lenders don’t require any seasoning, there are others that only need to see 3 months. It can also depend on what state the property is located in.
Regarding your 30 properties… While most lenders have limits on how many loans they will do for, some don’t care how many you have with other lenders. Providing you’re financially strong enough to support it.
But I have to ask, do you have mortgages in your name on all 30 of them? Do they all show up on your credit report? If so, that will definitely cause a lender to scrutinize you a whole lot closer, and may scare a few off.
I might suggest finding a good mortgage broker that really knows investment strategies. You can start by going to the LENDERS link at the top of this page.
HTH
Try First Horizon. They will let you go to 90%, but you must pay points.
Try First Horizon. They will let you go to 90%, but you must pay points.
I purchased "We Buy Houses" signs through out my target area. Also, I drive around my target area locating vacant/abandoned houses and then contact the owners.
Thanks for your question.
Nate
"Fail Fast"