All Forum Posts by: David Dye

All FHA loans are assumable so you may be able to get lists of FHA loans and go about it that way.

What is your intention once you find them?  

@Steve S.

When the intention is to BRRRR, I frequently recommend asking your loan officer to quote you a rate where the rebate covers the closing costs. Yes, you will have a higher interest rate but you have to look at what it is going to cost you: If the higher rate is going to cost you an extra, say, $30/mo and your closing costs are, say, $6k, you are betting that you are going to keep that loan for over sixteen years. $6k/$30=200 then 200/12=16.66(yrs). Most people don't keep a 30yr loan for the full term because they sell it, refi it to get better cash flow, want to take money out, etc.

Hope this helps!

@Krista Thorn

If the numbers are accurate, it looks like a deal I would take! Cash flowing $650 on a $248k property here in California isn't bad at all!

If I were you, I would see if you could squeeze an extra 5% in for 25% down as you will get much better interest rates on loans with that LTV. Trust me, it will make a difference.

Cheers!
David 

Hey @Bar Mandalevy, welcome to BP!

I'm not sure I would take that condo... Yes, pan is a good rental market but that HOA fee is going to eat into your cash flow and it is going to be hard to find favorable financing at that balance here in California.

Hey @James Grant!
Welcome to BP!  There is a ton of info here, it is hard not to learn something every time you log in.

What questions do you have?

Cheers!
David

@Julie Beck

Welcome to BP! I am going to echo the idea of doing it yourself.  

I would not look for a partner but rather a team of good people to help you get your deals done (handyman, real estate agent, contractor, management company, etc.).  I have seen too many partner deals go sour that I highly advise against them.  Just read all you can, ask questions, get referrals, and start with the less risky stuff (until you get some experience under your belt).

Hope this helps!
David

Hey @Nenad Sapungin!

I was able to scrounge up a 20% down on a SFR to buy and hold as my first purchase through savings, stock market gains, etc.

There are a lot of ways to get started that depend on your individual situation.  For example, the amount of money you have to put down, your monthly income, your current living situation, current location, etc.

One way that many newcomers get into the game is through 'house-hacking' as you can get very favorable lending terms for an owner occupied property.  Many will get a multi unit, live in one, and rent the rest out.  There are tons of threads on here about this strategy.

It is really up to what your situation is and what you feel comfortable doing.  

@Brandon P.

This business is all about leveraging (as Billy said).  Borrowing money at cheaper rate than you can make is how you grow your portfolio and cash flow properties.  Use the bank's money to make you money.  

Here is an example:

Say you have $200k to invest.  You can invest it in one property and bring in $1,500 in rent ($18k a year).

OR
You can take that $200 and put 20% down on 5 properties. Your note will be about $1k which means you will be cash flowing about $500 mo (I am including PITI in this estimate). $500 x 5 properties x 12 months = $30k/yr. This is not including the approximately $200k in equity you are gaining with each mortgage payment (at the beginning of the loan). This adds another ~$12k a year.

Hope this helps!

David

@Nenad Sapungin I got my first loan while still in college (with a part time job), so it is most certainly possible!  If your job is in the same field of study, you can count college as work experience.  You can write a letter to the lender stating the situation. 

Hope this helps!

David

Hey @Andrea Mas,

It may be helpful to know the seller's exact reasoning for demanding this.  Many times, if you have financing set up before the offer is accepted, you can negotiate with the seller with that in mind.  If you already have all documents to the lender and they are ready to proceed as soon as they get the purchase agreement, the seller may be more willing to accept it because it will be a quick escrow.

Cheers!
David