All Forum Posts by: Andrew Flora

@Dan Gamache rent ready multi family(5+) I would plan to hold it long term

Do you allow the seller to hold a 2nd lien position for seller financing on a small portion of the loan.  This would be short term.  A deal just hit my desk right after I closed a 9 unit and have a 6 unit under contract already so I need to finance a 3rd deal creatively short term until they are all closed.

My girlfriend and I had been dating a couple years before we decided to live together.  We are also on the same page when it comes to our investments, our future, and most importantly our real estate.  My house had better cash flow potential so I moved in with her and I pay her monthly “rent” on the 1st of every month that is right around total living expenses minus mortgage, taxes, insurance. When we get married we will reevaluate and split things differently based on incomes but we decided a simple “rent” agreement is the best and safest way legally for me to contribute with putting her equity at risk.  I rent my house out and I keep that cash flow, when we get married we might re-evaluate that as well.  We have both seen friends and family lose their assets to a less deserving spouse during splits so we tread carefully but with the best intentions.

@Jennifer White sell the house and pay off debt.

@Joey Allison

Sell both of those cars. Those things are dragging you down. Get rid of that debt and pay cash for a cheaper vehicle you dont need a 30k car. I would consider downsizing your house as well. In this market I would pay off the rentals. Get 100% debt free. Then pay cash for additional rental properties. If the market goes back down then buy a lot more properties for 50 cents on the dollar. If you are out of debt you literally have zero risk and will be set for life. Get a job for a few more years to fund more real estate. Then retire at 40.

Bumping this post. I also have a seller potentially willing to carry the 25% down payment. Would it be possible to do a 100% seller financed deal then refinance with a lender for 75% LTV 6 months later and pay the seller the 75% cash you get from the bank? At that point you would have a 25% 1st position with the seller and a 75% 2nd position with the lender?

hey Khoa, any luck in April?  I’m an active buy and hold investor in Indiana.

There’s 3 ways to invest in real estate.

1. Lucky

2. Stupid

3.  Traditional

You can get rich in all 3 methods.  You can also go broke in all three methods.  Let me break it down.

1. Lucky - You have a rich parent or relative that says here’s all the money you need for your investments just send me 8% every month, You inherit a load of cash to do what you want with, you win the lottery, etc.

2.  Stupid - You use credit card cash advances, personal loans, sell drugs, etc to make the down payment usually for a flip type of investment or a brrrr.  This is so risky and dumb but I’m not going to lie I have done it and many people have used these strategies to get rich but in all reality it’s extremely high risk and ruins many people financially.  It’s stupid, but it’s possible if you want to invest “with no money”.  I don’t recommend.

3. Traditional - Work your butt off, live frugally, keep your credit score at 800, and buy a good cash flowing asset every couple years and the cash flow will snowballs eventually and someday you can retire.

If you are not 1 I would recommend being a 3.  If you’re a wild man on a mission try 2 but be prepared to lose it all!

@Michael Hawrylak hard money for flips could be a very valuable resource for you in the future. I wouldn't advise flips in your current financial situation. Flips can burn money quick and until you have substantial capital and a properly funded emergency fund for your family I wouldn't recommend it due to the high risk situation you could be putting your family in.

For now maybe get a side gig to accelerate your savings. Pay off all debt except your house I like Dave Ramseys debt snowball method, sell your cars if they are financed and buy something cheaper for cash. Build that credit score back to 750 and save $20-30k in cash.

Then you will be ready to rock and will have 10-15 properties within 10 years. Stay focused and delay gratification until your goals are met. Dont go buy a new car after you have two or three rentals, stay frugal until you meet your goal.

Most importantly get that credit fixed and avoid high interest short term loans until you can afford to take that risk without bankrupting your family.

spend a year or longer saving money and fix your credit. Once you get your credit fixed, you will have some better options, especially if you have saved some money. VA loans can be a huge tool for you, do a lot of research on those strategies. Don't rush into an expensive hard money loan, be patient.