All Forum Posts by: Brian Bennett

hey Austin,

I am an agent in the Atlanta area, and I do get a 1099.  Getting loans as an independent contractor really isn't tough as long as you know the rules and have the discipline to follow the game plan.  Generally you will be asked for 2 years of tax returns as an independent contractor, then you'll need to make the minimum income requirements to be approved for the loan.    

To add to all of this, I actually just used a HELOC to buy my first rentals. Please feel free to reach out and I will help you as much as I can.
 

Thank you for the reply.  I can't remember who said it but the hardest part of all of this is just getting started.  Don't over think it, just do it.  Obviously don't be reckless, you get it.  If you need help, feel free to reach out and I can give you more detail or help you make sense of your own direction. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $0

one of two in my first purchase, these were part of what felt like a low barrier to entry and low risk investments for me to get into the world of real estate investing

What made you interested in investing in this type of deal?

I just wanted to get into the world of real estate investing, I'd love to free up my time and only punch a clock when I choose too.

How did you find this deal and how did you negotiate it?

I found this deal by talking to other agents in my office, I was lucky enough to have some friends that were willing to share with me.

How did you finance this deal?

I got a home equity line of credit and used that money to pay for this unit and another one out right.

How did you add value to the deal?

This home has long term, happy tenants. I may not have the opportunity to improve the property until they decide to move.

What was the outcome?

I am going to hold these for a while, I'll let you know how it goes.

Lessons learned? Challenges?

Everything is great so far, I am new to the deal and haven't had much time for anything to pop up.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent myself so I'd love to help anyone else that I can. I did use Synovus Bank for my HELOC and they were great.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $0

2 bed, 1 bath house, w/ property management and long term tenants

What made you interested in investing in this type of deal?

I was eager to get started investing in the rental so I knew a few people in my office that were holding a handful of units and asked if they would share with me. They agreed to sell ,e two of their unit so I could get the ball rolling.

How did you find this deal and how did you negotiate it?

I found this deal by talking to people in my real estate office, there wasn't much negotiating

How did you finance this deal?

I used my home equity to get to get a line of credit.

How did you add value to the deal?

I can add value to the deal by upgrading the home but there might not be much room for that. There are happy tenants in the unit and things are working as-is

What was the outcome?

Seems to be working fine now. I have happy tenants and positive cash flow.

Lessons learned? Challenges?

I am new to the deal, haven't had much time to have anything pop up just yet. Everything is smooth so far.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent myself and would love to help anyone else if you need the help.

Form everything that I have gathered, with the way inflation and appreciation are moving you'll be ahead if you buy today and ride out any dips in the market then to wait for some low point.  Nothing that I've heard suggests that we will see a "crash", maybe a little correction when we get more inventory on the market but not a crash.

I'm not sure if I have enough info to help here but different loans have different rates, and different companies can offer different rates.  Usually personal home loans will be at a lower rate than a construction loan.  Maybe check that you are comparing apples to apples?  

Hey Mike, thanks for the help! I'm not sure if the tax deductible factor was in my mind before this.  I will surely bring that up with my accountant. 

Hey Drew, thank you for the reply.  For your first question, I do intend on keeping money aside to handle those issues, thats a great point.  Until I get a balance built up, I will have a good bit of back up money already set aside.

I do believe that I will have a fixed rate but I will be sure to double check that.

Lastly, I live in the Atlanta GA area and prices are higher than my surrounding towns.  My plan with lower priced rentals is just that I will be buying outside of the metro area so I wont be working with the inflated city costs.

Thanks for the help.

There hasn't been much talk lately about using your home equity as leverage so I wanted to start a new conversation.  I almost feel like I could be missing something.  Is this not a good idea or is it just not that popular...

My plan is to get a HELOC and use the money to purchase two lower priced rentals. With an interest only payment being very low, I intend on using the balance of the rental income to pay down the principle. From everything that I know in this early stage, it feel like a winning plan to me.

Do you have any thoughts or insights that I might be missing?  I know this is a very simplified explanation.  These units already have property management, and tenets.  I understand that I need to keep money aside each month for the big ticket items that will need to be replaced.

I'm excited to hear your thoughts and will be more excited to hear that this posts sparks ideas or opportunity for anyone else.

Thank you 
 

I want to build something that can benefit my family for generations. I could give my son an apple or an apple tree.  I intend on teaching my son how to live off what I create and eventually grow it himself.  :)