All Forum Posts by: Account Closed

 Don't get cold feet just got talk to a loan officer or banker at a CU .  an MLO's goal is to help you get a loan so they get paid ! they will help you as much as possible .

 So I am a per door guy.  I need 200$ per door to consider a deal and I shoot for $250 per door.  I run my numbers in a worst case scenario type way so they typically perform much better than these numbers but you need to be safe.  My best per door home is actually a 2 family that makes over 325$ per door and my worst is a 4 unit that makes about 200$ per door.  Naturally the 2 units was a sick deal in a vacant house that needed work and tenants and the 4 unit was a rock solid proven property so you will pay more for those !  

 Good catch Kuba , it would not be conventional financing  .  Kuba did you see his post right before this about contracts? maybe you can answer it for him ? not sure your experience with writing contracts. 

 The number that will matter is the amount of money you make in income on your tax returns.  The higher that number the better chance you have to get a loan.  so as long as your real estate business is helping that number get bigger it should help your cause. 

 Great and challenging questions ! 

1.  Credit unions are amazing (actually got a great deal on a duplex in October from a credit union)  they will most likely gladly speak to you even though you do not have accounts.  In my case they just set up a savings account with 1$ when we moved forward with the loan.  

2.This is a tricky questions.  It should come down to proving your current income with w2 and also providing your 2 years tax statements.  To my knowledge the current income is the important part.  The part where you are unemployed is tricky.  I am  not sure they would know this unless you disclose it.  I would probably disclose it because I am a firm believer in being honest and if I don't get the loan then it is not meant to be.  That being said they may not even care about the 3 months unemployment.  

3.  So last I checked as long as its your primary residence you are ok.   However, I would double check the rules with your loan officer because if you break the rules and are caught its considered mortgage fraud and thats not good !

overall I would go see a loan officer and run your situation by them.  As long as your current income qualifies for the property and they are ok with the 3 months off in the summer I would say you are in good shape on the rest of your concerns ! 

@William S.what would your equity spread look like right after close? 

Not likely something I would be interested in but everyone and every area is different.  I would hold on to the cash for something more in the 250-300$ per door range.  

Thanks for the kind words ! I started this thinking I could speak to a couple people and help them but it has turned into a nearly 200 post 9 page beast !! to funny ! 

So I hate to answer so poorly but I am so fortunate to have a real estate agent wife and an attorney for a father so I do not get too involved in the contracts.  I just tell them what I want and they show me where to sign.  I know that sounds terrible but its the truth :(

Are you looking to purchase or wholesale these properties we can try to get one of the other active members of this post involved to see if they can assist more. @Clayton Plank? 

 KNOW YOUR NUMBERS ! 

Also with the BRRR deals always go worst case scenario . If you have to bend some rules and numbers to make the deal cash flow properly then don't buy it.

at the end of the day you just need to keep everything honest. Do not over value a ARV to make a deal work. Do not think you can just leave the 10% vacancy allowance off a BRRR because you believe you can keep it rented! its really hard and takes discipline but it will make or break.

 Oh its such a long story haha ! 

Long story short I was working for and accounting firm when I was just out of college.  I hated the job and wanted to open my own business just like all of the people I was doing taxes for.  The only issue was all of these entrepreneurs made less than me even after years in business !  it was very deflating .  I looked at a handful of local businesses and couldn't find anything that seemed like a solid low risk investment.  That being said I kept working and noticed a trend , all of the people that impressed me the most and also made a good income all had income properties.  That planted a seed in me and I started reading and researching.  At the same time my wife had just begun her real estate agent journey and my friend just bought an 8 and a 5 unit and was having success.  When I took inventory of everything in my life and everything going on around me it seemed like a no brainer that I should try this whole real estate investing thing.  I was very nervous so a way for me to overcome that was to sell myself on the idea that I could live for free.  That being said we moved out of our apartment that we paid 700$ a month for plus utilities and moved into  duplex I snagged up for 50K.  the taxes were 2K per year and throw insurance in the mix and my mortgage payment was only 430$ per month.  that being said we rented the other portion out and the rest is history!

Note - I had very little cash to put down so we did a FHA loan with 3% down and got a 6 % sellers concession. We only had to bring 1500$ to closing and I had to borrow like 500 of that in gift funds from family. I was a broke post college kid trying to get on track . I do not recommend investing with such little reserves but I got lucky and I was able to save up some cash pretty quickly and that property has given me little headache over the years !

update-  Actually I was not that confident at first I remember being so scared I was physically shaking ! haha.  But its sounds a lot better when I say I was super confident . 

So I got lucky and invested before doing any research when I was a newbie. I think population growth and jobs are obviously two huge metrics to look at when investing in MFR's .

other things are property taxes, cost of living, median income , and attractions.  

here is a great article BP did on this topic.  This article honestly answers your question perfectly .  https://www.biggerpockets.com/renewsblog/2012/11/11/select-city-real-estate-investment/