All Forum Posts by: Colton Fairchild

A lot more info is needed for anyone to provide accurate advice. Why would you want to take a 10% penalty to fulfill your retirement dream that is still 15 years away?

Sure, the house will cost more in 15 years but if you cash out your 401k now, you will miss out on 15 years of potential investment appreciation... If you averaged an 8% return for the next 15 years, you will more than double whatever your account value is today.

If you are set on moving into that home now, why not get a mortgage and finance it while rates are near record lows? 

@Melissa Nash Sounds like a good opportunity for you. I don’t know of any websites that help with this other than just informational sites. I don’t think you should go into too much detail trying to persuade him on tax benefits. Better to focus on easy/quick transaction, no RE commissions, etc.

I’d suggest a 30 yr amortization with a 10 yr balloon payment. It’s simple and you just have to agree on down payment (if any) and interest rate.

Best to facilitate this with your attorney and title company.

I agree with @Brian Garrett. Most are $50k or even $100k minimum. Although, I have seen a few that allow $10k - $25k.

@Tyler Bobo I’d recommend you speak specifically to a securities attorney who has experience with syndication. Explain what you want to setup and they will know what to do.

There are a few on BP.

This depends on what type of loan you plan on using. 

In general, conventional lenders are not going to let you add your rehab costs to the loan. However, some hard money lenders do this all the time. 

Ex. 10-20% down and they will finance 100% of the rehab. Of course it's a higher rate so you will have to factor that in.

That's reasonable. Check around with a few local banks and credit unions in your area first though. 

It sounds like you already know the pros and cons of leverage so it really comes down to your personal preference/risk tolerance. Leverage can be advantageous right now because of the low interest rates. I believe it comes down to the cash flow though. Last thing you want to do is over leverage and have negative cash flow just because you wanted to get one or two more properties. If you can get 5 properties and are comfortable with the cash flow, then go for it. 

I can't speak about WA, but there are many ways to buy with not much capital. You can purchase a property with as little as 3.5% to 5% down.

I would recommend that you start by reading Brandon Turner's book on investing with low or no money down... Also, the house hacking book that just came out could be a great strategy for you. Both of those are on the bookstore tab. 

Yes, but it most likely will not be for 100% combined LTV between the two loans. They will want you to have money in the deal (5-10% minimum).

One alternative would be to see if the seller will finance the portion that you would otherwise use a hard money loan for. If your 1st lien mortgage is 75% LTV, you could ask the seller to carry the remaining portion...

@Stephanie Weathers Welcome to BP! There are many ways to invest in real estate. What exactly do you want real estate to help you achieve?

Feel free to reach out whenever. Good luck!