All Forum Posts by: Ben F.

Agreed. Good idea. Never heard of that. Not sure how or why the association would be involved with your financial decisions. 

You should get a second opinion definitely and inquire more with that realtor to get your questions answered. If you already signed an agreement with that agent for representation, your transaction for that particular property would go through him. 

Always network and ask questions. Not unethical in this scenario, but you should, in person, ask him first.

@Chris Adams You certainly don’t have to put 25% down (unless you already own property). Totally up to you. Any purchases after your first purchase is considered an investment and the minimum down payment is 20%.

Find out what type of loan you'll be getting which is probably FHA or conventional and you're only required to 3% or 3.5% down. Also make sure your loan is a fixed rate.

Double check your rent potential vs mortgage payment to ensure monthly profits. After adding the HOA to your mortgage payment looks like it'll be close. Credit rating will affect you mortgage rate and monthly payment as well.

Have you ran your credit report to verify all is accurate. www.annualcreditreport.com is free yearly.

@Chris Adams confirm that the association allows rentals and if so what percent of the tenancy they allow to be rentals.

Also, get an estimate of what the unit would rent for when you expect to rent it and compare that to your mortgage and HOA fees combined. I'm assuming you'll pay your taxes through the mortgage so that portion you won't need to be added in separately.

Your offer should always compliment true market value minus an incentive of say 5%. Anymore of a discount is a perk. Negotiate your best deal. Why did the other unit sell for $8k more? You need to know that. Also look at appreciation in the area by seeing what the same/similar properties sold for 5/10/15 years ago.

Are you pre-approved and know what your approximate monthly payment would be based based upon your loan amount and credit rating?

After these things are figured, you should be able to make your decision.

@Sharlese Stokes - You're welcome.  Happy to help! Have a good day

(Maybe some of this you may know already, but I’ll explain...)

Plan to determine your advantages/disadvantages with using the first time home buyer programs based upon your plans of acquiring investment property. Both options are great to becoming a real estate owner, but the two objectives don’t support each other - owner occupied vs investor. Your first property will always be owner occupied regardless. But, whether you use the programs or not, will all depend on your planned timeline combined with your capable strategy (and ‘highly considered’ in how much you receive in grants).

After completing the search for what programs you’ll use in the county of your real estate purchase, qualifying (usually involves attending a 4-8 hour course w/ certificate received) and locating lenders that support the programs you’re seeking, you’ll be ready to initiate your grant application process. Note: Stack as many as you can.

Be mindful that while acquiring your first home under a first time home buyer program, the expectation is that you live in that home for a (prorated) period of time in which the grant would be forgivable if you meet the full term - usually 5 years. If you move prior to this time, the amount received will be prorated. This is where you’ll have to determine your best plan based on your exit/transition strategy in getting your next property.

The expectation if you don’t use a first time home buyer program I think is a year - check with lender to confirm. Once you start buying additional properties you’ll then fall into the category of an investor in which your down payments will be between 20-25%.

You’re on track so, well done! Your next steps are all strategy based. Get savvy on your asset protection if you haven’t already.

Hello BP Members,

We all pick up a “new hat” in life and we learn by doing, but we also learn by educating ourselves by conversing with others who’ve taken the same road before.

I have been a long term investor of over 13 years in tax liens in multiple states, tax and bank foreclosure auctions and long term buy-n-holds or rental property. Now I’m starting a journey along the motivated seller category and am using private/hard money as my lending source as well as my own capital.

In regards to the motivated seller strategy, I’m educated on every process involved - in acquiring leads, follow up, providing value and overall being an agent of service and of partnerships.

What I would like, from those of you that have walked the path of using private/hard money, is you sharing what your successful strategy was, by indicating whether you choose to build inventory in acquiring rental properties first OR if you chose to build capital and primarily wholesale making your rental portfolio last priority?

Please explain what you chose and why...I’d like to hear your “why’s” as well as your scenario entering the game...

Thanks!

Ben

Morning BP Members!

In regards to evaluating a neighborhood and a particular property, what software - website or app- are you using? I’m looking for something all inclusive if it exists...

It would be ideal to know taxes, parcel number, existing liens, flood zone, owner, percentage or home owners vs renters, etc...for a property as well as median home prices and the crime/school/transportation ratings, all in one place.

Any recommendations? There’s a lot of new software out here and I don’t want to miss any great ones...

I know about city-data, neighborhood-scout and property shark...

Thanks!

Ben

You're right. It doesnt have to be. My email is [email protected] 

Your contact number is missing...you mentioned to call...

Hi Reginald.  My email is [email protected]

Hello BP Members,

Is there any 100% financing available out there from hard money lenders? 

Thanks!
Ben