All Forum Posts by: Christian Chartier

Sounds good Devin, I'll reach out for a conversation this afternoon with your office. 

Good morning,

I'm looking for some lenders for some quick fix and flips in my area after the last two hurricanes. 

There are a large number of flood/damaged property's listed for 50%+ off of the original value and in very desirable locations. 

I'm looking at 2 deals hard right now, one has an ARV of about 600k going for 350k now, and another with an ARV of 550k-590k going for 310k.

I have a trustworthy and efficient crew that will do the reno's for me, I'm seeing what I need to do on the financing side. 

Also, open to syndications in this area to get these houses back up and in order. I'd like to do 5 flips from now until the next hurricane season strikes next year. 

My real estate experience thus far has been buy and hold although I have used the crew to do several jobs for me and have referred them out to others I know who have had only great thingsto say about them. 

I'm seeing deals all over town, if I can swing a big enough club, it would be highly worth it to pick up some of these beach properties that are now listed for up to 80% off value, rehab and flip them. 

 I don't want to offend you, but when I was 20 I also thought that this thing or that thing was the only way to go. With maturity, you find out quickly that life is ALL about hard work, ESPECIALLY with the goal you've set out. 

Regardless of what you do, you still need the basics to get started which are a good paying job, low expenses, and savings. 50k is a great starting point, but you'll quickly realize it doesn't go as far as you thought it might. 

Please heed me, I also thought 9-5 was prison and would not be for me. Since starting out in this world, I've re-evaluted everything, multiple times, and have had to change my plans consistently. 

You either need a good paying job, or a business that's been profitable for at least 2 years to move forward. It was eluded that you don't even have a steady income outside disability. If you're getting SSA or SSDI with only a couple years of work experience you're most likely bringing in only about 1k a month or less. That is not enough income to satisfy any lender unless you live somewhere that you can purchase $50k-$100k properties. 

My goal was to be an entrpreneur, never go to school or join the military and definitely not work a 9-5. 

Gues what maturity has done to me? Put me in the military, then went to school and now I'm back in school again at 36! All the things, I said I'd never do. Reason being, our first choice path does not always work out. We envision the goals in our head, but the path there often is painful and not in line with what we thought. If the goal is still the goal and you are willing to do anything to achieve it, then test everything, don't set a path in stone that you cannot come from out of. 

It took me alot to get some properties. I work in IT, work hours 8:30-5, salaried and work from home. Two masters degrees, two properties and my home residence, and still charting my path to the goals I set sooooo many years ago. 

Reassess your path and timing, if its truly the ONLY thing you want to do in life, then get a job working for a commercial developer or an investor who buys frequently. At least the work will line up with your goals and you will be getting paid money and a free education in property development and management which are the two things you need, money and education.

The only fast road to this is unlimited cash, which you dont have.

 Start with education, ALOT of it, study study study. Books/internet/people you know who have done something similar. 

One thing about real estate is that you can do it a million different ways, first thing to do is to find out all of those ways, then see where you can fit into one of those strategies. 

Based on some of the juvenile questions asked, I want to just forewarn you. One deal can totally wipe you out, especially when you are leveraged to the hilt (personal experience). 

I also highly suggest you expand your time horizon from 5 years to 15 years (minimum, more like 20). Your first few years will be slow going, even if you BRRR because you also have to occupy your propety for a period of time to get those low down payments. Each lender is different, but you don't want to run afoul of those rules and find yourself deep in a court case with your lenders for fraud. They may not catch on the first couple times but they will notice your pattern.

Also, what worked in one property may not necessarily work so well for the next. Example, I purchased a multi in a vacation town (where I live). I decided I did not like the hassles of STR, nor did I want to pay a property management. Tried LTR at the property and am satisified with my monthly net return (about $1,200, net means=after all expenses) on a property that cost about 700k.

As I said above, there are many ways to do this and I am always learning more. I am now in the process of converting that multi into a long term residential group home. Once I receive my license, I can be looking at 10x my current monthly return. 

Lots of ways to do this, but better to go slow and protect your capital along the way.

With the little amount of funding you have, only way I could see this happening is if you join a syndication that already has the opportunities and steps down. 

You will not be able to BRRR your way through 167 properties, I doubt in 1 lifetime let alone 1 year. It sounds like you will only be doing the BRRR method for your primary. Don't forget, lenders require you to dwell in the property for 6 months-1 yr minimum. It won't be long until they catch on to your scheme (some lenders may even consider it fraud), so be careful you don't get ensnared in that.

As a beginner, you'll have less funding opportunities, use that time to learn your process (whatever it may be). Get a couple properties under your belt, make sure the cash flow is there. Down the line you can start looking at DSCR loans for your properties, or even I/O (interest only) DSCR loans, however you'll need to prove to lenders that you not only know what you are doing, but that your method is also profitable. You'll need to aim for 1.00 or higher ratio to make it work for lenders offering those programs.

I hate to say this because i am totally against it, but you can borrow from friends and business associates, try and find aomeone who can contribute not only funds, but also strategy (since you're new).

It's great to have lofty goals, just remember you need to find a way to pave the road to your end goals. 

Your post reminds of nee investors who have just discovered options trading. Yes, you can become a millionaire fast, but you can also lose it all and the chance of losing it all is far greater than making millions (as a new investor). 

Take it slow, create your path, see how it plays out with the first and then reassess.

Great insight into several aspects of what I'm trying to accomplish. 

Thank you for your professional input.

I'm not necessarily seeking cash flow, I'm seeking lowest out of pocket costs so I can continue my buying journey. 

This current property I'm trying to purchase has 6 beds, will be perfect for another residential independent senior living property after I've moved out and should bring in about 36k monthly before expenses.

I've considered doing some flips, but my whole county has been picked clean. 

I could do some renovations to a duplex I own but it's already one of the more expensive properties in the area and I dont want to price tenants out. 

I'm also well into the process of turning this duplex into a residential independent senior living facility, which will increase my monthly cashflow by 25k before expenses. 

Other option is just to buy a cheaper home, sit on it then move again when the markets are better aligned, however I'm a firm believer that there are always deals to be made. 

I'm open to non-traditional options at this point, just need to get the deal done. 

How are interest only options looking?

I need the monthly payment as low as possible to get into another next year.

Hello everyone,

I've been researching ARM lenders for about a month and looking for lenders charging the lowest rates, FHA or Conventional are fine.

If you have used or know of any lenders offering low low low rates on an ARM, send me their info and what their rate is.

Legnth of time (3,5,7,10 yr) is not as important as the rate for this particular scenario.

Thanks in advance