All Forum Posts by: Celena Lathrop

Couple your savings with a creative financing method (HELOC, Home Equity Loan, private money, etc.) for a down payment + closing costs. Analyze as many deals as possible and find one that cash flows that you can afford the DP for. Get the best deal under contract ASAP. Qualify yourself as a full time RE professional and collect the tax benefits from that as well (double since you are married if you file jointly). I fully recommend refinancing your primary residence or getting a home equity loan to start toward your first property. After a year (usually), you can do it again to expand your investment portfolio and work toward replacing your W2 income. Best of luck!

If you qualify, definitely refinance. It is the safest method and requires the least amount of your own money - allows you to maintain your reserves while leveraging OPM to maximize your return with the least amount of risk. If you're not satisfied with the interest rate offered by your current lender (although it is still a good rate at 4.4), do not be scared to shop around. Call as many loan officers as you possibly can. I guarantee each one has an entirely different response. Find one who will satisfy ALL of your financial interests. Best of luck!

Not credible. If your location requires appraisals for loan acquisition, it is well worth the several hundred dollars to do so. As well all know, you make that money back and then some once you hold a cash flowing property. Don't waste time. If it sounds too good to be true, it usually is! Best of luck!

Having your own license is useful for unlimited MLS access, forms, etc. It takes some time and definitely some money to acquire, but I do recommend it. I suggest in the meantime to work directly with the selling agent. The double commission motivates them to choose you over other buyers, and it eliminates the hassle of dealing with agents that don't understand our intentions as investors. Best of luck!

Use that money as a down payment. You don't need to have the purchase price ready to spend in order to buy a property. But partnerships are one of the best and most popular financing strategies with almost all investors.

Experience is worth far more than $400. You won't regret making a small amount of money to learn a ton about the industry, establish your brand, acquire a partner, and have a MF property in your portfolio. You might regret passing up an opportunity to do just that. Definitely worth it as long as the deal doesn't lose money for any parties. But don't be afraid to ask less than the asking price enough to make you blush! The numbers must work for you and your partner or it is NOT the deal for you. Best of luck!

3 major suggestions I have for you to consider to protect your future assets. Ditch the car payment. When applying for a loan, it factors into the D of your DTI, meaning it may be the reason you are denied for a loan or the process is delayed. Next, buy an investment property under the hypothetical assumption that you are the sole owner and that you can not rely on a girlfriend, wife, or roommate to supplement your payments. You never know if someone needs to move for whatever reason, and you can potentially end up in a pickle. Also, I recommend you disregard the credit card(s) as a method of paying real estate expenses. With exceptions, many of the best and older investors have made that mistake and lost a lot as a result. It's not out of the question to use them strategically and be successful using them as a tool, but it's a dangerous avenue that I, personally, try to deter other investors from traveling. Otherwise, as long as you run your numbers right and do your due diligence, I think you'll be in good shape. Best of luck!

BiggerPockets.com/NoMoney

Consistency is key. Their personal, individual reasons for denying your offer are irrelevant and trying to identify them is a waste of your valuable time. Focus on your own goal, which is to acquire their properties. Don't give up because of one "no" to your offer. Send a letter, a postcard, anything. Then send another. And another. Go back to see them and remind them they have a way out of their situation. Give them a call. Show them you're committed and that you're not going away. Make them remember you and make them want to sell to you. One rejection isn't enough to turn away. And of course, as mentioned prior, broaden your marketing to larger lists, more people, and so on. Best of luck!

Excel is a great free tool for newbies, but it's only as effective as the user. One simple entry error and your entire analysis could be incorrect, so always double and triple check. That said, it's highly recommended for a new investor to use manual systems such as Excel or even old-school pen and paper. When you first start, you need to educate yourself which means you need to practice (and master) deal analysis. It's great to use analysis tools on BP and other sites, but if you depend on them to do the math for you, you are more likely to make mistakes and find yourself under water in bad deals. It's also much easier to find partners, joint ventures, and lenders using creative financing if your deal analysis abilities are solid. Whatever system you use, make sure you get very good at deal analysis without relying on software to do the work for you. They're there for convenience and speed, not to replace your own skill!