All Forum Posts by: Christopher Roy

Hey guys, first off I want to thank everyone for all of their help. I am looking to move forward on my first buy and hold property because of all the things I have learned from this website. I have convinced a seller to finance the deal with a small amount down! I have a business partner (best friend) who is willing to lend me the downpayment ($6,000). Neither of us have ever dealt with private lending and don't know how to properly do this. He understands he's making less than 2% in the bank so he does not mind lending me the cash for a better return.

My questions:

How do we structure this deal so that I am not screwing him?

How long of a term should the loan be for? (he doesn't mind it being a few years as long as he's collecting a higher percent than what he is getting from his bank annually)

What legal paperwork should I draw up for ease of mind?

What percentage rate should we use?

Thank you all for your input, it has time and time again proved priceless!

Ive been wondering how to structure a deal exactly like this, please tag me whenever this is answered, thank you and good luck.

OO is owner occupied, houses you purchase to reside in. They get preference over investors.

Im taking this as a joke?

You should be the one setting the price range of the properties you want the realtor to be showing you. You don't and shouldn't disclose the exact amount of money you have, simply give the realtor a price range you want to stick with and thats that. Hope this helps!

I read that "piggybacking" no longer works. I would research this further.

Hello Bp, Im looking to purchase my first investment property. Obviously I am a little nervous about doing this. I was hoping for an analysis on the deal to see if you guys think its worth it, etc. I was also hoping for your guys' help on what exactly I need to do for my "due diligence".

Heres the numbers:

1/1 remodeled condo. This condo is essentially turnkey, needs no rehab in order to be ready to rent.

Asking price- $41,888, comps sold for 47k-53k within complex

Seller offering to finance with 10% down.

Property management already in place.

150/ month HOA

Rent- 600-650/month

I know this is not much money in profits per year, but I figure it may be a good start? What questions should I be asking? What documents should I be requesting?

Thank you in advance for your help and advice. I look forward to hearing everyone's input.

I do not have much REI experience yet, but maybe my situation can offer you a little help.

I purchased my first home for 140k with FHA 3.5% down. My Mortgage(Including taxes&PMI) is $860/month. My area is 1100-1300 too. In 10months time my house is now appraised at 163k. I did not expect such a large appraisal.

I think this is a good deal to make because buying a new home, mostly likely in a new subdivision? seems to appreciate quickly. You would not have to worry about major repairs for many years to come and it being a brand new home should positively impact potential renters, hopefully keeping your rental occupied 100% of the time.

Hope this helps.

@Wayne Brooks Thank you for the response. Generating more income is kind of a tough task, is there any other alternatives to "making more"? Just to clarify, I plan to rent out this property that I have and my next purchase would be an OO property, maybe a condo. Do you have any ideas/plans/timeframes on a good 3-5 year plan for my situation, besides "simply" making more money? I really appreciate the guidance.

I am 22 years old and am a career Firefighter. I have read multiple books on long-term real estate investing and really would like to purchase my next home within the next year or two, seeing as home prices/mortgage rates are on the rise and I would like to earn some positive cash flow each month on my investment property. I understand that reading books does not give me all the experience needed, thus me looking for some guidance on how you, the experienced investor would start their REI career if you were in my position. I am interested in SFR 'buy and hold' properties solely at the current time. Once I have built up my REI portfolio a bit, I think I would like to break into the commercial side of it. But that is many years and books down the road.

My financials:

I make 40k a year

credit score is 700

I purchased my first home 8 months ago, I currently owe 142k on it. It is worth 160k-165k. This is an FHA loan. My mortgage is $860, which includes a $110 PMI

I have a roommate who pays me $500/month

$400/ month car payment

No other debt

$2k savings

My questions:

Do I make enough a year to begin REI? How would I obtain multiple properties with my DTI ratio?

Does having a car payment make my goal of 'buy and hold' REI out of reach, or does my roommate offset that amount?

How would you begin, if you were in my shoes?

I know paying off my car is most likely an important factor, but I'm trying to avoid that for right now, seeing as it will take me awhile, which would push back my purchase by a good amount of time.

I really appreciate any help offered. Thanks for reading.