All Forum Posts by: Dan M.

Another idea besides DSCR which is the obvious best overview option for you ( though will be more expensive then traditional financing ) is partnering up with someone with a solid W2 job who can get financing.

You could also try to find someone with a self directed IRA who is looking for a good return backed by the property.

You could also try to get seller financing. 

Hello Abby,

My answers to your questions, everyone has different opinions but here are mine:

1) Yes it is 100% worth it, if not only for the business line of credit you can establish

2) Deals are harder and harder to find, at least where I am from and surrounding areas. Interest rates are high and prices are high.

3) Yes it can be a great way to start snowballing money, but remember some critical parts. Your numbers have to be near perfect. You have to include all the costs appropriately. Realtor fees, income tax, correct arv, correct costs. Its not uncommon for someone with little experience to overestimate how much they will walk away with and under estimate construction costs.  Materials and labor have gone up greatly in the past few years.

4) 50,000 but average home costs were only 200,000 at the time ( 25% down commercial loan). Depending on how you want to aquire the property, or flip, or whatever I think you need to strategize how you want to acquire property first then come up with the number based on a percentage of down payment + closing costs of the house prices you are targeting.

5) Talk to a few local bank lenders and see what first time home buyer programs they are offering. If your going to house hack and live in a place it can be a great way to get a property for much less than 25% down. Just bear in mind your payment will be higher the less you put down.

Hope this helps. Feel free to reach out if you have any other questions. 

Hey Davis welcome aboard!

Check out some of the podcasts they have a lot of useful information and you can listen when your driving or working out or whenever you have downtime. 

Another thing too if your looking specifically for a mentor I'm certain Dallas has a few Real estate groups see about joining one and looking for someone in person there. Just don't pay anyone a nickle, a real mentor would help you for free. 

Hes going to have to pay the income taxes on the withdrawal, plain and simple. Though if you can make him money, and keep snowballing that money, it will be more then worth it to him to do so. 

I think its better to partner with your dad and give him the interest and points instead of a stranger, this way you both prosper. Maybe he can purchase equity too instead of just issuing the loan, or both. Say youll give him 5% equity/profit if he loans to you for 2 points and 8% or 1 point and 5% , whatever you guys feel comfortable doing. 

Welcome Zak!  That area has seen some major growth in the past few years. I would say find a calculator online - there are plenty of free ones - and start analyzing properties at random. Even if its a horrible investment, youll understand the numbers much better by actually doing analysis. Id recommend at least 5 per day. 

Then there are the podcasts, where they go through the financials in the deal deep dive section which can give you a good overview.

What questions do you have about financials? You can send me a PM if you feel uncomfortable posting it. 

WARNING I AM NOT AN ACCOUNTANT AND MY ADVISE IS MY OPINION ONLY AND NOT NECESSARILY FACT CONSULT WITH A LAWYER AND OR ACCOUNTANT

From my understanding you pay back depreciation during the years you took it when it was rented no matter what. The capital gain is exempt up to 250 from the cost basis wherever it stands provided you can prove you lived there if challenged 2 in the last 5.  

I got an 11 showing so I'm doubling down this year.  

I mean its math at the end of the day. Lets say you sold that new rebuild for 1 million and it costs 600,000 to build. 450+600 > 1.0 so in that case Id say no. How easy is it to sell as it is vs how easy will it be to sell at 1M + ? 

Personally speaking I thing LI is super over valued and there's a ton of traffic. Maybe having an affordable option would be better to someone as a purchaser. 

Id buy it in a heartbeat, assuming there's a price reduction premium for it. The crazy person responsible is dead. Ghouls, goblins, ghosts or spirits aren't going to stop me from buying a deal. 

Good job Luca. Are you doing any value add or leaving it as is?