All Forum Posts by: Daniel Sprague

Its a longer term and more expensive play, but i think you may have to get a hard money lender to seperate this into two seperate loans against each property, and then down the line you can look at many different types of financing. I would suggest getting them out of the LLC and into your name until the dust settles and you have the debt where you want it.

The blanket mortgage you currently have eliminates anything i know of besides hard money and private.

Good Luck

I would be wary of it.

If it is hard for them to sell it now, you need to consider how hard it may be to sell in the future when rules inevitably get stricter.

For me, it would be hands off as there is always another deal around the bend.

I simply wouldnt take the risk

Good Luck

I figured that. 

If you aren't afraid of losing it I would start low   

In my market if a four plex comes up that is in any kind of good shape it is either priced way to high which is typically just bait for someone looking to 1031 and get lower returns than I am looking for or it goes to a bidding war so I am usually afraid of losing it with a low ball

Thanks

I suppose it depends on the demand in your market for a four plex along with other factors like condition etc The last four plex i purchased my final offer was 22 k over asking because they are very rare in the community it came up in and it was placed on the market under value. My best advice is to not let the list price determine your offer. Run your numbers and offer what meets your parameters whether that is at 80% of asking or 20 k over. In general if you offer 80% of list just because you don't want to offer what it is listed at you will lose good deals. Take what they listed it at out of the equation and figure out what it is worth to you. Then offer that. Good lucj Good

Congrats!

It had issues because it was your first deal.  Way to get over one of the toughest hurdles!  Now take what you learned and apply it to the next deal.

Real world expetience is your best teacher.  Lessons can cost you money short term, but provide knowledge forever.

Congrats!

I agree 100% with the FHA scenario of buying a fourplex.

I am now 28, and was in the same situation as you when i was 22.  Unfortunately i bought a single family home with an fha loan.  I still hold that property today, and i clear $800/month, so i am not mad about it, but when i look back i wish i would have been more educated on the options at that point. 

I now own a fourplex that would have been an amazing 1st home. 

If i would have known about this option i would have been all over it.

Dont be afraid of the mortgage insurance.  That is something that would discourage most people, and i agree that it is a cashflow killer, but there is no other product that is so easy to obtain, with so little down, at such a good rate. 

Good Luck!

Hello,

My name is Dan.  I have been investing in Southern MN since 2010 when i graduted college.  I have 9 properties, and 16 units.  I am also a full time Mortgage Consultant.  I have been doing that since 2011.

I am interested in Bigger Pockets because i am sick of just reading about real estate.  I accidently stumbled upon a podcast this last weekend as i was traveling for the holiday when i just typed "real estate investing" in to Google. 

Wondering what kind of advice people have for me to get involved in this community? 

Thanks!