All Forum Posts by: Anna Swartz-Lopez

Mark J Kohler and his partner Matt Sorenson are phenomenal real estate attorneys. Mark Kohler is also a CPA. They have clients nationally. I can't link on Bigger Pockets, so just google them. They really focus on working with real estate investors, and have a lot of resources. 

Hi Kisha, 

Let me encourage you to keep going, it takes time and effort to get anywhere with RE investment. It sounds like you are on the right track though. 

Hard money has really become institutionalized and main streamed over the course of the last decade or so. There are national lenders that will lend you the purchase price as well as the rehab funds for a fix and flip project. As you are a newbie, you will need to bring a strong down payment, but there is funding available. 

I think it depends on your goals. A lot of investors make their living doing deals, and so for them, every deal needs to have an immediate payday. However, if you like your job and are just buying property to build a portfolio of cash flowing properties over the long term, it makes more sense to buy something that will pay you back over time, rather than immediately. Do your homework and make sure that the property cash flows, that you are not sinking cash into it every month to pay the bills, for sure. 

But I have also heard experienced fix and flippers discourage newbies from buying a property to hold it for rental income, because there was not an immediate influx of cash for the newbie investor. I think that was bad advice. Yes, when you start out, you will likely make deals that you might not, after you get some experience. But you have to get the experience somehow. 

Check out the website one rental at a time. I really appreciate this guy's story about how it's ok to just focus on getting a few rentals. If you want to go past that, great, but just a few rentals can dramatically change your family's financial future. Also, he had to evict the very first renter he got into the very first rental that he bought within the first month. Talk about a rough start. 

So in short, don't let the "great" be the enemy of the "good." Yes, "great" real estate deals are out there, but it's ok to start with just a "good" one. 

Hi Griffin, while I don't know anyone in your area, I do want to recommend that you spend time networking to find the good people that you need. Join a local BNI club. Almost every group has a contractor, and you will learn very quickly if that is the sort of person you want to do business with. I want to encourage you to take the time to find the right people first, because as you said, a contractor can make or break your deal. 

Vacation rentals can be a great source of income. However, the management is much more involved, and different municipalities are making different rules about short term rentals, so be sure you know the market where you rental is. It sounds like you know how to do your research, which is important. Maybe pick up a book specifically on short term rentals. It is also a good idea to get involved with a network of other real estate investors. Check out Meetup in your local area, and try to find people around you from whom you can ask questions and learn. 

I have also heard the advice to start local, so you can be more hands on when you are starting. However, I live in a very high cost area, so that is not really an option. I say this because I want to affirm for you that there are certainly instances when it is advantageous to begin NOT in your local market. Just be aware that there will be more risk associated with the greater distance, and lack of connections where your property is located. 

I admire your enthusiasm and want to encourage you to go ahead and get started. It's ok to make mistakes, you have to be in the game to win the game. I do highly recommend trying to build a network of people to support you through this process however. 

It depends on which scenario makes you feel more comfortable. It sounds like you have a good thing going with the second strategy, so don't give that up. The BRRR method has potential to give strong returns, but it involves a lot more hassle. I know that on a personal level, I would not want to live in the midst of a remodeling project and then go do it again every few years. That is a decision based on personal comfort level.

There is no right or wrong answer to your question, it really comes down to what you are comfortable with. 

Welcome to Bigger Pockets Phillip, and best of luck on your journey! 

National lenders who focus on real estate will be able to fund the acquisition plus the rehab. If you can find a local bank willing to work with you, that may be a good option too. If this is commercial, a local bank may fit the bill for you. Just be aware that everybody has tightened their lending restrictions and you may not get the flexibility you want from a small community bank. 

I recommend looking for an insurance broker in your area. Brokers will have more options for you. It is a good idea to find a broker who can carry a conversation about real estate investment, that is an indication that they understand your unique needs. I cannot refer you anyone, unfortunately, because insurance agents have to be licensed in their states, and I am out in California. Talk to other investors active in your area - who do they use? Barring that, use google and pay attention to the reviews. Then start calling and asking questions about real estate. You should be able to get a sense of whether someone knows investing or not. 

@Taylor Baker 

Check out the article below for an overview of the different types of HUD programs

https://www.scotsmanguide.com/browse/content/order-from-the-hud-menu