All Forum Posts by: Andrew Garcia

Hi @Stone Cyrus, I see this used more often with wholesalers or people that operate a larger portfolio.

I see it used most often for cold calling, data aggregation, and other repetitive tasks.

I personally have never used one but I know others that have had success with it.

If I were to hire one, I would ensure the company is both reputable and industry-specific.

Wishing you the best of luck!

Hi @Christine Smith, are you going to be self-managing the property? 

If not, you need to include the management fees.

Other than that, it looks like you have the details worked out.

Hope this helps! Let me know if I can be of any assistance.

Hi @Julia France, there are not as many as you would think but there are some good informational resources out there.

If you search "build to rent" you should find some great information in the forums.

If you choose to build, thoroughly vet the contractor or developer that you use as they will be the key to the deal.

Hope this helps! Let me know if I can be of any assistance.

Hi @Tim Robbie, Nick gave some great advice but I will add on.

To answer your most recent question, to maximize the methodology, you would buy the first 10 properties using conventional financing where you get the best rates and terms.

Then, you can get other types of financing. You can purchase properties with non-QM loans that are not agency loans and do not come with the same restrictions. Essentially anything outside of FHA, USDA, VA, and conventional loans are considered non-QM.

Non-QM loans come in all shapes and sizes but the most common one for investors is known as a DSCR loan.

This is a loan where there is no income or job verification, you qualify based on the income generated by the property. You do not need to submit a laundry list of documents and the rates are not that much higher than conventional so many investors choose this option for scaling.

You could also refinance all 10 of the properties into a non-recourse blanket loan where there is one loan to cover all 10 properties. This frees you up to do conventional on your next 10.

You could also mix and match these strategies. Maybe it makes more sense for you to do a blanket loan at 15 units so you do 10 conventional and 5 DSCR.

Small multifamily, large multifamily, and single-family all work, and all can generate the income that you desire. You need to make sure that you have the right team in place that can make it happen for you.

Hope this helps! Let me know if I can be of any assistance.

Hi @Andrew Del Rio, unfortunately, you could not claim it as your primary residence because you are primarily living somewhere else.

You could claim it as a 10% down second home but it would need to be a single-family residence.

Alternatively, you could go the non-QM route where you have more options.

Hope this helps! Let me know if I can be of any assistance.

Hi @Eric Karlene, usually they only want to lease back for 30-60 days so after that it is exactly like any other deal.

A good strategy would be working in times at least once a week where you can have prospective tenants tour the property while the old owners are still there.

That way, you only have to have a short period of vacancy.

The strategy to amass properties varies based on your goals and approach.

Are you looking to do straightforward LTRs, BRRRRs, STRs, multifamily, or something else?

Please let me know if I can be of any assistance. 

 @Paul Lim, of course. 

A DSCR loan might be a good option since they are more flexible in underwriting than conventional but they have worse rates so it is a trade-off.

I am not familiar with your market so I am not sure what would be reasonable there. A local investor-friendly agent should be able to help you.

Let me know if I can be of any assistance.

Hi @Juan Gil, congratulations on starting your REI journey!

My advice would be to do a rate/term refinance into a conventional loan. Since you bought it two years ago and the market has been crazy since you should have at least 20% equity. 

Your loan amount will remain the same but the monthly payment will be different. You will likely have a higher interest rate but will not be paying any mortgage insurance so the payment should not increase drastically.

This frees up your FHA loan to use with 3.5% down on a house hacking opportunity.

I do not know your personal financial situation but house hacking will either pay for your mortgage or significantly reduce it. That way, you will be paying a similar amount as your currently paying.

You should definitely find an investor-friendly agent. They are free to you as a buyer and will provide you with immense amounts of value.

Hope this helps! Let me know if I can be of any assistance.

Hi @Lekey Mullen Jr, welcome to the community!

It definitely sounds like a good opportunity.

When using your entitlement, remember that you only can reinstate it from refinancing into another loan product once. 

Therefore, when you plan to scale this strategy, you will have to look into other loan products.

Not something to be worried about now but definitely something to think about.

Congratulations on taking the first step! Let me know if I can be of any assistance.

Hi @Jay C., the issue with a HELOC is that rates could continue rising so if you plan on keeping it for longer than a couple years, you could end up paying double digit rates.

Option 2 removes that so I would personally choose that option.

Ultimately, it comes down to what your risk tolerance is and what you are comfortable with.

You seem like you have thoroughly thought through both options so I am sure that you will make the best decision.

Hope this helps! Let me know if I can be of any assistance.