All Forum Posts by: Andrew Kiel

I would also recommend that you join AZREIA. Great organization and great way to network with other investors and find properties.

I've worked with many investors that have bought several properties in a short period of time.  Lenders will likely prefer that because the can effectively use the same docs/file for multiple loans.  This of course assumes that you have the "sourced/seasoned" funds for multiple down payments.  As you start getting more loans, it tends to get a bit more difficult to qualify, the lender will start needing proof that previous purchases are cash flowing properly and can cover the expense of the loan (unless your income is just so good that you can personally afford to cover all the payments).  Ironically, the easiest time to qualify for loans is when you are new/newer and don't have a bunch of properties.  At this point you can have up to 10 conventional loans in your name (and also 10 with a spouse if not on loans together).  Sadly, it generally gets harder to qualify as you get more properties, not easier.

Welcome @Justin Cain  - you're in the right place to learn.  There is no better way for the average person to build wealth than RE investing!  The best advice I can offer personally at this point is absorb all you can and find the niche that works for you.  There are so many to choose from, but you will likely gravitate towards one or a few that suit your personality and needs.  Happy investing!

Do both.  Talking to a helpful lender or two should be a high priority.  The only thing that could hurt you there is if they pull your credit it may have a little bit of impact on credit score. You can also get a credit report yourself with a free site (www.annualcreditreport.com).  As you start to analyze deals, you may find something that is great and it will usually be important to act quickly - that means having financing / lender pre-qualification ready to go quickly.  If you need to fix any credit issues or have any other items to work on (like paying down some debt to qualify) the lender can help you there too.  Best to be in the know with your credit and income situation so you can know what you can qualify for before it becomes a fire drill.

@Dean Belcher Congratulations on your first rental property!  We have many homes here in Tucson with pools as well, and Tucson is a market where a pool really is an asset (gets more rent and adds value).  That being said, I agree with @Greg Scott - especially with getting a healthy amount of liability insurance.  I'd recommend getting personal/business umbrella policies as well (preferably both).  Be clear about costs in your lease agreement, you may even want to insist on a pool maintenance service.

I think the answer here is a solid "it depends".  I have bought and sold many houses and pieces of land on "land installment contract" aka contract for deed, agreement for sale, or many other terms that can be used.  It's going to depend a lot on the paperwork used.  Is the "land installment contract" recorded with the county recorder?  What you are describing above sound very much like a "wrap" or what in my state is referred to more officially as an "all inclusive deed of trust".  I've found a lot of lenders (and underwriters) do not understand this very well and their default answer is "no".  Would the same lender say that you don't have the right to sell the same property?  Personally I'd review the documents used to acquire the property, with an attorney if necessary.  I'd also be talking to a different lender. 

Congratulations on taking the next step!  We've been investing in single family homes in Tucson for long term cash flow for some time now.  Feel free to PM me if you'd like to chat, I'm always happy to talk with new(er) investors!

Andy

My personal preference is a smaller local bank or credit union.  Ideally, one that holds their own notes / loans (especially mortgages).  Somewhere that you can build a relationship with a decision maker at the bank and you're not just another number to them.

I would highly recommend opening a business checking account and keeping a separate and distinct set of books for your rental.  This will especially make things easier for taxes, your accountant / tax preparer will thank you.  Keep it simple with just a low cost / free checking account and do your best to keep the funds separate while taking payouts or draws as needed.  It will also help keep your sanity as to how much you really are making (or losing) on your rental.  Things tend to get buried if comingled with personal (is that Home Depot charge for me or my rental?)...

Just getting the information out to the right people is the key. I love your idea of marketing to the people that are already doing projects in the area. I'm not a wholesaler, but I do buy a fair amount of deals from wholesalers. With that said, I personally think the ARV numbers given by most wholesalers in my area is a complete joke. Learning your market area and understanding ARVs is very important so you can understand the numbers the end buyer needs, but any professional will know their numbers and will quickly discount or completely ignore your ARV opinion. Work on your buyer's list and network like crazy to find the few serious buyers in your area that will repeat buyers. The best wholesalers I know have just a few buyers they do a lot of repeat business with and rarely need to market properties beyond that. Focus on building the network. Be clear with what you are offering (terms, earnest money, price, special financing, etc) and take good, accurate pictures/video..