All Forum Posts by: Brian Bohrer

Hey Richard, 

Would you mind offering a little explanation or a resource of where I could go to educate myself?

Thank you!

Hey Nicole, I have never heard of this.... Is it expensive? I have a $100,000 mortgage and am currently creating an LLC to transfer it into. What would you guess as an estimate of cost for this insurance?

Thank you!

Hello BP Family!

I am hoping someone can give me a little direction.  I am looking to purchase my first owner-financed deal back in my home town in Nebraska.  The current investor owns the property free-and-clear and I think I almost have her convinced to sell me the house with owner-financing.   She does not want to take a big tax hit as she is currently retired, and I cannot use conventional financing as I have just changed careers and am no longer loan worthy.  So, I think this would be the perfect strategy to solve both of our problems!

Would anyone have some insight into where I could find resources to educate myself on the deal structure of owner financing?? I would like to be knowledgeable enough to effectively teach her about the structure of the deal so I can better resolve any apprehensions she may have.

Thank you in advance for any information you can provide!  

Talk to lenders and tell them your plan. Save up for your 3.5% down payment on an FHA loan and make sure your credit score is in good standing. The better your credit, the better your rate! Once you are pre-approved you will know what houses to target and take action!

I love that you are getting involved at such an early age, I wish I would have done the same!

I wish you the best on your real estate journey!  Take Care,

Hello Breland,

Have you ever considered a DSCR loan? Debt Service Coverage Ratio loans do not consider the credit worthiness of the borrower but instead considers the income potential of the property. They are generally a % point or 2 higher than conventional loans, but this may be your only option. You can always refinance out of the loan at a later date once your credit has found it's footing once again.

If you don't want a partner I would look into these loans as a great option!  I wish you the best on your real estate journey!  Take Care,

I suggest moving in within 60 days and occupying one unit while STR'ng the other. There is a good chance the STR unit will most likely pay your mortgage anyway. No need to play a game with Federal Gov't!

If you can't move in within that time period then I would echo the same thoughts above and pass on the deal until you are ready to move in. More deals will come along I promise!

As a final thought, nothing stops you from staying multiple nights at a different address per week once your are moved-in, but you would want your license and mailing address changed asap for sure!

Good luck in your real estate adventure! Take Care,

I second the suggestion by @Aimee Fisher! Most HOA's will not have any clauses about 30+ day rentals. I would take the furniture you like to the next home and then furnish what needs to be replaced and start cash flowing that beautiful home! This way you can still enjoy the home (and it's appreciation) when it is not being rented and it will always be waiting for you if you change your mind later!

This sounds like the perfect plan, I read a book called "American Nomads: Finding and Renting to Remote Workers" that has some great information and suggestions about renting for 30 days or more as well!

I wish you the best in your Real Estate adventure!  Take Care

Welcome to the fold!

Feel free to reach out if you ever have and questions or need someone to discuss current issues.  Take Care and Merry Christmas as well :)

Hello Steven,

These are all great questions! My first thought is that the property you purchased back in 2019 must have some tremendous equity appreciation over those years.  It would definitely be smart to utilize this equity to grow your portfolio, but be sure that you can afford the new payment and still plan for maintenance and future capex.  I personally prefer to have about 6 months of expenses, including the mortgage payment, saved up for each property. There will be an appraisal done by the bank when they do the refi, so you will be capturing the appreciated equity as well.  As far as property taxes go, I am not certain, but I don't think those are affected since there was no sale of the property that took place.

I hope this helps and I wish you the best in your real estate journey!  Take Care,

Welcome to the family J.R.!

My advice would be to keep educating yourself to alleviate the fear of jumping in feet first!  The more you know about real estate investing and the more you know about the potential market you want to jump in, the better!  My advice to anyone about to jump into real estate investing is to get involved in the community first!  Search Meetup.com and Facebook Groups for real estate investment focused groups and just start attending meetings!  The real estate community is very inviting and also very education focused, chances are someone there will take you under their wing and show you their mistakes and successes.

It is good to be cautious as this is real life money we are playing with, but as long as you do your diligence and aren't forced out of the market in less than 5 years, there really is no reason why you shouldn't be able to find success!  Just always remember your why and that will keep you on track.

I wish you the best in your real estate journey!  Take Care