All Forum Posts by: Andrew Freed

@Chris Sawtelle - Great advice. I myself have moved forward on a syndication as a limited partner. I never thought about it, but everything you mentioned was an attribute of the deal. Good insight.

Nonetheless, I think as you alluded to, its all about the deal. Not all syndications make money hence you really need to do your due diligence as a limited and general partner just like any real estate deal. For instance, for my syndication (thankfully it was local), I visited the property spoke to the property manager and vetted the deal / numbers. I think the most important part of a syndication is finding the deal and the other pieces fall into place. 

@Stephen Foote - I think you should ask yourself how bad do you want to achieve financial freedom? If you are complacent in your current life then I find it unlikely you will go outside your comfort zone and invest in real estate. To truly be successful in real estate, you need a strong why and a plan on how you will achieve it.

However, if you are ready to put yourself in uncomfortable scenarios and become a better version of yourself everyday then I think the VA househack loan is a great option but only if you plan on living in the property. It will force you to gain landlord experience while living on the property and allow you to leverage your reserves to purchase another property very quickly in the future. So really ask yourself, do I want to achieve financial freedom? Can I put myself in unknown scenarios and grow as an individual on a daily basis? Cause if you live at your parents house and are happy where you are at, I doubt you will be willing to leave your cocoon of comfort with the goal of reaching self actualization.

@Pete B. - Most renters don't think about home maintenance since they do not own. From my experience, I tend to just purchase the filters and either send them to the tenant and remind them to change them or change them myself. It is a very small expense compared to replacing a HVAC system which can be very expensive. I get that we as landlords want to delegate as much accountability and cost of the property to the tenant as possible, but I doubt they will care one way or another about the health of your properties systems. If you aren't proactive, this will cost you way more money in the long run. 

@David Alberts - Definitely worth a discussion with some banks. I employed the same strategy and utilized a HELOC to purchase my next three deals. Strictly from experience, the HELOC process did take 30-40 days so it does take some time. They have to review your paperwork, get the property appraised, title, etc, all of which does take weeks if not a few months.

I personally believe that action is more important than planning. The more you wait, the longer it'll take you to get into real estate investing. 

If you have any other questions about HELOCS, feel free to reach out. Always happy to help. Best of luck on your journey. 

@Isaac C. - Great question. I have done both methods and its all about what you are looking for. If you want to keep it simple, have a fast and smooth closing with a local rep that you can reach out to quickly for answers, then go with a local lender. However if you want to get the best rates possible but perhaps deal with a delayed closing and a lack of customer service then go with an out of state lender. I personally would rather go with a local lender, sacrifice .25% interest rate but ensure my closing happens on time and doesn't complicate the purchasing process then that is ideal. My personal philosophy is do you really want a deal to fall through as a result of underwriting issues? It's honestly not worth it in my opinion. 

@Mason Hickman, @Bill B., @Maritza Wellington - makes a ton of sense. thanks for the information. 

Does anyone use a warranty plan for systems / appliances or both? I ran across this cool program by Sears (Sears Home Warrantly) where they will cover up to 21 items at a monthly rate of $70 bucks and a deductible when you file a claim. They also offer systems and appliance plans. I have an old house and suspect my furnaces might be going soon so thought this might be a good hedge. What are your thoughts?

https://www.searshomeservices....

@Jane Johanson - I'm just curious but have you considered purchasing the property under your name, and refinancing in 6 months using a 30 year conventional loan? You can always transfer it into the llc after the refinance period. If you are worried about liability issues, you can purchase an umbrella insurance policy. The reason why I ask is because you will get better financing terms as an individual as opposed to an llc. If you can have access to a 30 year fixed conventional loan at these interest rates, why wouldnt you go for that? Just a thought.

Also, below is a thread I found that might have good nuggets of information for you.

https://www.biggerpockets.com/...

@Jason Shackleton Smart moves, good work! Opportunity costs are real, glad you took full advantage of the equity at your disposal. That's how you multiply wealth. 

HELOCS are always an idea to consider. I utilized a home line of credit on my first primary residence to purchase my following two real estate deals. That way, you utilize your equity when you want it and not have cash just sitting there in a bank via a refinance. 

You could also consider house hacking a multi-family and renting out your current residence if it cash flows. That way, you only need to come up with 3.5% down up front. House hacking is a great strategy to slowly ease yourself into real estate investing / property management by living on the property. I personally like the slow acclimation period as a result of house hacking, you get to gain landlord experience while having your mortgage paid for.