New member from King George, Virginia

[Brian Hesler]

Hello everyone! My name is Brian and I am an aspiring RE investor in search of knowledge, advice, deals, and opportunities to succeed in this business by helping others.

I am currently an Engineer working on contract with the US Navy (with regular deployments overseas), but looking to escape the 9-5 under someone else's guide and work towards freedom on my own terms; to be able to provide a quality life for my wife and two kids, as well as be able to give them more of my time than I am currently able.

I have started my education with a few seminars and courses from Rich Dad Education, and of course lots of reading. I intend to operate (at least to start) in the Fredericksburg, VA and surrounding areas (basically anywhere from Washington D.C. to Richmond). My current goal is to flip 3-5 properties and using their proceeds to acquire a rental to hold. I would like to repeat this process until I have a reasonable portfolio of rentals that I may leverage to break into commercial multi-family residences. I know I have a long road ahead of me, but I look forward to the challenges.

I look forward to learning more and more each day and networking with like-minded individuals. If anyone is in my area would like to connect, or recommend local REIAs or meetups, I would greatly appreciate any help as I begin my REI journey.

[Thomas Franklin]

@Brian Hesler Since you are interested in Residential Multifamily Property, I invite you to consider the following. Many Realtors will suggest purchasing a property using a FHA Loan, to reduce your out of pocket money. If the property requires rehab, the Realtor and/ or Mortgage Broker will suggest applying, for a 203k Loan. A 203k Loan is where the purchase price and rehab costs are rolled into a single loan.

Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate). Because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC. What happens if one of your tenants has a slip and fall, on your property, or something else happens to them? You are on the hook and can be personally sued, for everything you own. Some people will say, "Take out a quality Insurance Policy and you will be protected." Ambulance chasing attorneys know their way around and can legally navigate around Insurance Policies. Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years). This is what I am encountering, in the current Mortgage Industry.

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days. These clauses are contained, in all Promissory Notes nowadays.

Many Realtors and/ or Mortgage Brokers will not tell you this information. Many, but not ALL are only focused on the commissions he/ she will earn and not focused, on your best interests. You many be asking yourself what can I do? Locate a Motivated Seller that will consider Seller Financing. You may have to put more money down (10-15%), but you can close, in a LLC, with no worries about banks. I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.