All Forum Posts by: Denver J Lobo

@Denver J Lobo

Keep the 10 loans under your name. that will be the cheapest leverage to get. 

Once we reached that, we started getting investment rental financing under community bank notes with a 15 year amortization and five to 7 years fixed interest rate. Granted, little less cash flow but will pay off property in 15 years and these notes dont show up in your credit report.

As far as syndications are concerned, thats a different ball game altogether and i suggest you to read a lot about them before you invest a dime.

Successful single family investors usually transition to their own multi family buildings since they have the experience of management

@Denver J Lobo

When I was first started I thought I was clever getting 10 in my name and 10 in spouses name. But later a found a world of highnet worth accredited investors who though the complete opposite.

Do the math here… with 300 dollars per property (2 months of work to buy a turnkey rental) you are going to need 20-40 of these to replace your income. I had 11 of these and good systems in place but still had 1-2 evictions a year and 3-4 big things that were normal annoyances like plumbing leaks, damages from hurricanes, or some vandalism. Image if I had 30, just 3 x those numbers.

Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications. Whatever you do, try to be as close to the investment as possible. 

If your net worth (income minus expenses) is under $200,000 or barely save $30,000, syndications are not for you. Stick with these Turnkey rentals despite what Gurus (who are trying to sell you their program) tell you for now. They have a little higher gains (a lot more volatility) but a syndicator who is willing to put you in a deal with more than 10-20% of your net worth is asking for trouble.

Since you're from Georgia, you may be (or need to be) aware that there's some Georgia specific rules that come into play if you have 10 properties. (handling of security deposits, move in inspections, etc.) These are noted in the landlord/tenant handbook the state provides. None of this has to do with mortgages but thought I'd throw it out there.

John - Thank you for bringing this up. I was not aware of that. Appreciate it!

Option 1 is the only option.

Option 2 is Not an option.  The Fannie/Freddie rule is not about “10 Fannie loans”. The rule is you can’t get a Fannie loan if you already have “10 mortgaged properties”....not 10 loans, Fannie or otherwise. So, 10 properties under one blanket mortgage counts the same as 10 properties with 2 mortgages on each one.