All Forum Posts by: Blake Reynolds

@Tyress Wilson

Welcome to BP!

First of all you should define your goals and what you want to accomplish through Real Estate Investing. From there you can create an action plan to set forth and have a better idea on the funds you will need. Make sure you realize what your strengths and weaknesses are. For example If you don't like talking on the phone a lot and to random people and making offers I would not recommend wholesaling.

Spend a lot of time here on BP and learn everything you can so you can start figuring out where you want to go. Ask questions on the forums, listen to the podcasts, read their beginner guides and materials, and start connecting with people.

REI clubs/meetings are also very useful to connect with other investors in your area and learn about investing more in depth. Don't be afraid to let them know that you are new to investing.

Regards

@Matthew Skinner

Make sure you also do some research on local Real Estate Investing Clubs in your area. Some of them are free some are not but regardless you should be attending one or two of those monthly meetings if you want to network and find other investors. You will have a better opportunity to learn more about marketing to your specific area and there will probably be individuals who will be willing to buy deals from you as long as they are good deals of course! 

@Kyle J.

That is some pretty good insight on wholesaling. I am in the same boat as @Account Closed but for me I think wholesaling will be a good way to get into real estate investing. I want to benefit from learning all of those skills that come along with it so I can carry those skills into the other areas of investing I want to get into. Education is key! I am currently waiting on my copy of that J Scotts book to arrive.

As for knowing who you are selling to I think it is a good idea to find a mentor or someone to help you get started. That way you can figure out what kinds of properties that they want to buy (given that they will be your cash buyer) or their partners will want to buy. That way you can better plan for which kinds of rehab costs you should be taking into account, whether it be for rentals or flips. It will also help you determine a max offer on properties based on what your buyer requires as far as a percentage of the ARV.

@Justin Simoes

Welcome to BP!

You should look into an FHA loan. That way you can get financing for as low as 3.5% down and keep some of your emergency fund or use it for some rehab costs if needed. With an FHA loan you are typically going to have to pay a mortgage insurance since the loan is backed by the government which is an extra cost each month yes, but to me it seems worth it to not have to put so much down.

Especially if you do some renovations and gain some equity in the property you could then refinance it with a conventional mortgage without a down payment since most banks will finance a certain percentage of the property value. So if you gain enough equity you could refinance and remove the monthly mortgage insurance cost.

I think any sort of multi family as a live in HOUSE HACK is a great idea to start out with. That is currently my plan as well. If you haven't yet you should absolutely check out the podcasts. They are a GREAT tool to use to keep learning about REI.

@Jan H.

I am planning to go inquire with a few local banks soon. I am in the early stages of buying so I am just looking to get pre qualified at this point and to gain a little more information.

@Karen Schimpf I do not have any specific requirements on whether I buy a 2 unit or a 5 unit. I haven't done any research on commercial loans yet so I haven't really explored that avenue quite yet but it is definitely a possibility. As of what I know now I would like to get into a residential but I know there are many more options out there so I will have to do a little more research now into commercial real estate.

Thank you for your input!

@Christopher Giannino

Thank you for the response. I will have to look into it more on that link!

So on that site it says steady employment history, at least 2 years with the same employer. So that seems encouraging since they don't seem to take into account the fact that the contract has an end date. My concern, however, is that I have only been at my current employer for 6 month and I only have 6 Months left on my contract. and before this job I just worked part time jobs through college so I don't have consistent work history.

I have also heard that some banks will take into account your college experience as "work history" to make it easier for recent grads to be able to finance a home. I have not been able to find any information on this, however.

I have been looking around to finance my first home, hopefully a small multifamily that I can live in while renting out the other unit/s. I currently am working a contract position that is not permanent and from asking around it seems like it is hard to get approved for a conventional mortgage when you do not have permanent employment.

Does anyone have any experience or advice on other forms of lending or financial institutions that accommodate for individuals in this position?

I recently graduated form college and just entered the workforce so I don't have a lot of recent employment history and I don't have a lot of money saved up to this point so I am looking to do an FHA loan.

@Carlos Diaz

It always cool to hear about other people starting out at a younger age.

I am 23 myself and I am just starting to plan out where I want to go with Real Estate. My plans right now are similar to yours and I am just trying to learn as much as I can before I jump into it. Another strategy I am exploring currently as well is to buy a small multifamily property. Either a duplex or Triplex and live in it while renting out the other units. This way you can start your Buy and hold acquisitions and reduce your expenses while possibly even receiving a little extra cash flow to put into your wholesale marketing.

Good luck to you and your ventures. I hope you find success in your market!

Regards

@William Gunlogson

Welcome to BP!

I am currently also getting involved in the twin cities market so If you ever need a helping hand let me know. This website is a great place to connect and learn so make sure you utilize it. Whenever you come across something you are unsure of just post a forum and you will get an assortment of responses to help you out.

@Jade Goring

From what I have read and heard it seems to be a powerful tool to have in your arsenal while being an investor. I currently do not have a real estate license but I am planning on getting one since right now I am just starting out.

It also depends on the state you plan on investing in. Just do a little research on what it takes to get your license where you are if you have not done so already.