All Forum Posts by: Dalyn Hazell

@Nick Shri All three of those options are valid. A HELOC can be a good idea if you have a lot of equity, or even a little, in your personal residence. It's cheaper than most other forms of borrowing. Personal cash speaks for itself, and Hardmoney is a little expensive but still a great way to get your foot in the door.

@Nadir M. You are on the right track. Definitely do at least a background check in the new tenant. It’s your choice if you want to do a credit check.

I wouldn’t change the rent amount unless it is being rented by the bedroom. But make sure you check your occupancy limit. It sounds like that shouldn’t be an issue though. 

After the background check comes back clear, you’ll just add them to the lease with a simple amendment and you’ll all sign.

Good luck!

@Val G. Hey Val! I was actually struggling through the same decision not too long ago. As a part-time real estate agent and a full-time employee in the accounting industry, there were several things that were must-haves when I joined a brokerage.

One was the ability to work virtually and not be tied to a desk or an office. Another was top-notch support and Zero production requirements. Last, I wanted it to be investor friendly so that I can make 100% commission on personal deals.

Eventually I settled on eXp Realty. My friend @Charlie Cameron owns one of the only websites that I know that talks exclusively about how to crush it as an agent-investor: AgentWealthHustle.com

As always, let me know if you have any questions!

Good luck!

@Janelle K. If you have the cash on hand to purchase the property and renovations, then that is the best way to go. With this method, obviously you will not have to pay any fees or interest.

If you do not have all the cash on hand, then you can refinance other existing properties or take cash out of your personal residence. Yes method will cost you some thing, but it is cheaper than this next method.

Private or a hard money is another option. Typically, private money is cheaper and you get it by leveraging relationships with friends, family members, and colleagues. Hard money, on the other hand, can be found by simply Googling “hard money lenders near me”.

In short, use the cheapest financing method that you can, but don’t delay doing deals because you don’t have all the cash yet.

Good luck!

@Raven Walker Yes, the year requirement is a real thing. I’m actually going through that right now. My hard money lender wants everything due in one year.

However, as long as you finish the rehab and the refinance within that year (assuming you're using the BRRRR), you'll be fine. Now, with the refinance, you want to make sure there are no, or little, seasoning requirements, meaning you have to hold the property for X months before they can refi.

In short, Hardmoney lenders are definitely not for only flippers. Countless landlords use it as well.

@Raven Walker What’s a typical price point for a fixer upper property in your market?

13,000 seems like enough to have a fair bit of reserves while still keeping your personal finances afloat. It sounds like you are going to have to borrow the majority of your next deal. Your lender may want you to have some skin in the game too, so make sure to factor that in.

As far as choosing between private or Hardmoney, preferably private money since it will be cheaper. However, as a new investor, many do not have the connections or track record. So you may go down the Hardmoney route.

Even if you choose hard money, and you pay more in fees and interest, it’s not all bad. It’s better to do a deal than to not. And in 20 years you will have forgotten about the couple grand you paid your hard money lender to use their money for a while.

Good luck!

@Shawn Brickner If the only issue is lacking a window, then look at the cost of putting that in versus the extra rent you would get. My guess is that it would pay itself off in a relatively short time.

@Maurice El-Amin Countless investors are still buying in this climate. There really isn’t a bad time to buy real estate, as long as the deal makes sense.

Regarding this property next-door, is it a property you could get a good deal on? In other words, is there any reason the seller will be motivated for selling it? Is the property in distress? Is the owner going through a problem like divorce, death, or death that would force them to sell? If any of these are true, then you have a chance of getting a good deal.

If the property is in good condition, there are no huge reasons for the seller to sell, and they are selling it for top dollar, then it is a lesser quality lead for an investor.

Good Luck!

@Kai Walden Another good way to find investor friendly real estate agents is to call the real estate offices in your area. Once you get in touch with the team leader, or manager, you can ask them which of their agents work heavily with investors. This way, you’re not contacting every single agent.

Good luck!

@Christina Jacobs Real estate school will not teach you much about investing. In addition to listening to podcasts, YouTube, and real estate investor meet ups will be your best friend.

When looking for a brokerage, make sure it aligns with your goals. Does it require office time? Maybe you have a full-time job and cannot accommodate that. Does it have the training you need? Does it have favorable commission splits?

Good luck!