All Forum Posts by: David Dye

Well... That depends on how much cash you have to leverage out on cash flowing properties.  If you have enough cash, you could go from $0-100k overnight... 

The key to this industry is leverage.  It is certainly possible with not that much... 

@Karl Gerber

Welcome to BP!

Sounds like you are quite experienced in the development side.  Would love to hear more about your thoughts and experiences in the LA market!  I too am from the LA area but focus on buy and holds.   

Cheers!
David

Hey @Account Closed

No cost mortgages are most certainly a thing.  The lender is probably passing a long a slightly higher interest rate for this luxury.  The way it works is that the lenders give what are called "rebates."  These are the opposite of points.  It is the lender's way of paying you back for taking a higher interest rate.  For example, if closing costs are $3,000 they look for the rate that is paying a $3,000 rebate and then pass that rate along to you.  Rebates are often expressed as a percent of the loan.

If you plan on keeping the mortgage for all 30 years, it is generally wise to pay the fees instead because you will recoup them over the life of the loan.  However, if you are going to refinance it out before the 30 years (which most do), it is often wise to take the no cost option.

Hope this helps!

David

@Mike S.

Something is fishy here... Lender's love 56% LTV loans...

-David

@Tony Castronovo

Did this "investor" contact you? Or do you know him personally?

-David

@Lawrence Moore

If you can make more using the money than the bank is charging you... Mortgage it out!  If not, wait...

The ability to leverage is everything in this business... 

-David

@Erin W.

Welcome to BP.  I am with @Ciprian L. and completely agree with the house hacking strategy.  Being owner occupied, you can leverage your down payment further (but not too far!).

You made a comment about paying less rent than you are paying now.  Keep in mind you will ALSO be paying principle in each payment... Thus, increasing your net worth and building equity. 

Not too sure what your current financial situation is so I would not be able to steer you to market you could safely afford... Or what type of property to suggest.

When you say $300k, do you mind me asking how you came to that?  Feel free to PM me if you want to keep it private.

Cheers!
David

@Armen Zakarian What are your intentions with the property?  Do you want to do rentals or are you trying to flip?  Makes a big difference on how you get financing.  

However, I have to agree with @Scot Howat... If you do not have any funds at all, it is much more risky... You need to have something to fall back on if a deal goes bad.

-David

This is a great post to read if you ever have any doubt about a lender:

www.biggerpockets.com/scam

Hope this helps!
David

Grant Mone It really depends on your level of knowledge. I am a huge fan of actually having a home inspection be a condition of the offer. Having a professional home inspection is worth the $200 or so. At least for me, it is helpful because they can point out things that are out of code and they give an estimated cost of repair in the final report. In terms of ARV, you need to look at comparable properties and add adjustments for differences. A good agent can give you a solid number. Hope this helps! -David