All Forum Posts by: Dan Portka

thanks guys looks like my best option is to wait the 6 months

I recently purchased my first property intending to do the BRRRR strategy. I was recently informed by the lender that there is a 6 month waiting period before I'm able to refinance. They told me I needed to have the rehab costs included in the closing documents... Because I didn't, the earliest I can refinance is 6 months from the day of closing. I checked the Fannie Mae website and I see there there's a requirement under the Delayed Financing section "The new loan amount can be no more than the actual documented amount of the borrower's initial investment". It all makes sense now, but in the books and podcasts that I've gone through there has never been any mention of this requirement. Now my money is tied up in the property for the next 6 months...

Is this just something I missed or do I have other options?

@Dominick Marschall

Hey Dominick - To answer your question I think you need to ask yourself what your long term goals are. Have you set goals for yourself and created a long term investing plan? Is real estate investing part of that plan and if so how active of an investor do you want to be? Are you happy working a W-2 and okay retiring at a "normal" age or do you want to retire early? I'm big on risk management - know what your risks are before making a decision and set up your plan with them in mind. What can you do to minimize those risk and how much risk are you just willing to accept? 

The route with less risk and less upside in your case is to pay down your current duplex. You'll see increased cash flow once the mortgage is payed off and be sitting on a nice chunk of money if anything ever goes south. 

You can assume more risk with higher upside and save for a new duplex. You'll be using leverage to obtain a better ROI. You may even be able to refi your current duplex to pull some money out and buy before Nov 2020. You may also want to look into a FHA loan w/ only 3.5% down since you'll be living in one side of the duplex.

As with any strategy, make sure to do your homework and plenty of research before diving in. Good luck!

@Andy Murray have you done any research on robo-advisors? I’m currently using Betterment... obviously not as safe as a savings account but it lets you pick a risk tolerance (asset class mix). I’m currently using lower risk (more bonds than stocks). They have a nice platform that lets you track to your major purchase goal, have low advisory fees, and your money is liquid. You have the opportunity to make more than you would with a savings account, but you have to deal with the volatility of the stock market.

@Frank Patalano for me being brand new to REI its twofold

1) education - I’ve been doing a lot of reading and listening to podcasts

2) lack of a network - being that I’m interested in investing out of state I have yet to build a team of people that I trust.

Just started looking what real estate events are in my area to try and tackle two birds with one stone

Hi Michelle, i'm also new to real estate and looking to invest out of state while working full time. I was originally interested in turnkey, but the more i educate myself the less i want to go the turnkey route. It just all depends on what your goals are!

Start reading (if you're not already), i'm trying to make it through half of these books within the next few months:

https://www.biggerpockets.com/blog/wp-content/uploads/2018/11/Best-Real-Estate-Books-Ever.pdf

@Melissa Nash would you recommend this strategy for a first time investor?