All Forum Posts by: Brian Nordman

@Steve K. What will be different about trying to obtain loans after that first handful? I have heard this before I just want to know what to expect so I can be ready for it.

@Steve K. I would like that post a million times if I could. You really just put that all into perspective for me in a very simple format. I get what you're saying entirely. Since you're not having to put any of your own additional capital down on each property you are more comfortable taking the less suitable mortgage terms because you can repeat the process over and over creating more cash flow in the end than you would do on your own funds alone.

Michael, I think it all depends on what your risk tolerance is and how well you have vetted your tenants. If you can get a quality person/rent in the property that's in the less desirable area I personally would be comfortable doing a year less. You are correct in saying by doing m-t-m it would be easier to get the person out of there if they aren't paying or just being bad renters. 

I have read in a lot of posts and heard in a lot of podcasts that many investor's strategy is to do a cash out refi to come up with capital to perform their next deal. One thing I have thought about though is when is doing a cash out refi not a good idea? For example, with interest rates going up and really no expectation to come down at some point the rates could get high enough to where refinancing would increase your monthly expenses enough to where a good chunk of your cash flow has disappeared each month. When rates were decreasing and even stagnant this strategy makes perfect sense. But where do you draw the line when the rates are actually increasing and you will be creating a larger payment for yourself?

@Russell Brazil I think that it depends. If you're a newbie and the only information you are getting is from people telling stories within the forums, then I would say it is a possibility that they could be taking away too high of expectations. There's no real way to validate whether every "success story" on here is true. But as a newbie you have to do your own due diligence. I think in the BP Podcast, @Joshua Dorkin & @Brandon Turner do an amazing job of bringing us back to the norm. They often times have very successful individuals on their show who have had a crazy deal in their favor at some point. Or took on insane risk and had it work in their favor. But what Brandon and Josh do is they constantly advise that if you are new to investing they would not advise following in those same footsteps and that this journey that we are all on is not a "get rich scheme." So for the people who are coming to you with unrealistic expectations, I would have to say it is because they have selective hearing and are being too naive to go out and do their own research. In my opinion, that is more on the individual investor than on BP.

@Upen Patel That is not entirely true. There is another branch of the HomePossible called the Freddie Mac HomePossible Advantage loan and that loan is for first time and repeat buyers.

http://www.freddiemac.com/singlefamily/pdf/hp_advantage_factsheet.pdf

Michael Hon thank you I will definitely check out those books!

Sebastien Hitier not really sure what you're trying to get at? My comment about there being benefits is not a false statement. I have done enough research to understand that's a fact. I'm simply asking for others who have used it personally to show numbers or facts as to why I should or shouldn't use it. For your comparison of renting vs owning, renting is indeed a waste of money. You likely pay the same or sometimes even more than you would for a mortgage and you get nothing out out it.

@Andrew Shearer I'd have to agree with @Edward B. that it was a very well thought out post. You might have been able to settle this debate by saying both sides are right it just depends! I was not aware of the two different type of "recognition" loans so that was something new to me. I no doubt appreciate your information and advice so thank you!

@Seth Hobbs That's crazy! I'm sure you're probably the only person on this site who could tell me where it is haha and by the way I am familiar with where Seneca is as well!