All Forum Posts by: Derek Schetselaar

@Bill F. Solid points. My friend working the real estate business actually on the lending side, so the knowledge front is actually pretty well taken care of. The issue I believe is he doesn't feel super confident in fixing up properties or a lot of risk. (hence the indexed funds) 

I would say knowing him, the advantage would be the knowledge base, connections from being in the industry, mentor who owns 10 single family homes, but the disadvantage being that they don't know anything about fixing up homes, brrrr, analyzing deals etc. 

Does that help? 

Yeah I agree that real estate should be prioritized for sure. The appreciation, tax benefits, and other people paying down your loan is great. 

I also agree that individual stocks can be risky, but indexed funds/ETFs I don't think are that risky. I think you can make an argument that an investment property with potential repairs, tenant issues, etc can be a riskier endeavor. Although, also usually much more profitable than 7% usually. 

@Ronald Allen Barney Good thoughts, appreciate the input man. I'm not sure I totally agree that he should ditch the stock market, it has it's perks too, but love the multifamily idea. 

@Ronald Allen Barney If it were you, How would you structure the deal? 

Hey Michael! Yes he is correct, there are usually options at 15% and 20%, but especially right now with the fannie mae/freddie mac trying to move out investment properties. The rates usually stink unless it's 25% down. A lot of lenders are pricing high to avoid taking on too many investments right now. 

Sorry to hear it was halfway through the process though, that should have been communicated upfront 

Hey BP, 

 I'm curious on what advice you would have for a friend of mine. 

 What would you do in his shoes? Either RE focused or Stocks
 

Assumptions: 

1) $50k in an indexed fund for Savings/Safety/Retirement

2) $30k in more aggressive stocks or available for down payment on potential properties

3) House Hacking primary residence currently Mortgage $2200, tenants pay $1500 abt monthly.

4) Stable income of above $100k annually at day job

5) Mid 20s age. Single

@Johnny McKeon

Sorry to hear that bro! Good luck. A primary VA loan wouldn't be affected by this so you should be good on that front. But, not the best news from the investor point of view!

Just wanted to notify everyone of this!

A new development took place in the last 24 hours regarding second homes and investment properties. In an agreement with the US treasury during the final days of Trump’s time in office, both sides worked out a deal where aggregators (investors) are limited in percentage of total loans that can be second homes or investment properties. This goes into effect for loans delivered after April 1. You can read more about the memo below. The old administration had in mind to steer Fannie/Freddie into doing a larger percentage of owner occupied while leaving the investment/second home realm to “private money”.

https://singlefamily.fanniemae.com/media/25286/display

This is going to impact rates from 3/8ths in RATE or more on second homes/investment properties. 

I don't know any of your personal scenarios, and I am not giving out any rate lock suggestions. I just wanted to bring this to the communities attention. 

Good luck everyone! There still will be plenty of opportunity for good deals! Let's grind and find opportunity! 

Good luck man! I'll keep my eye out for you. Are you looking in SLC proper, or the surrounding area? 

Wild man! Talk about a sellers market. Low inventory. High demand. When do you think we'll see a buyers market in Utah again?