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All Forum Posts by: Devin De Lange

Devin De Lange has started 1 posts and replied 24 times.

Post: Deciding down payment considering 6.625% interest rate

Devin De LangePosted
  • Investor
  • Myrtle Beach, SC
  • Posts 24
  • Votes 30

Hi Jessica, 

Here is my take!

Going with 14% Down:
Upside: You get to keep a nice chunk of change in your pocket. That's $22,500 you can use for any surprises life throws at you or to make your new house feel like home.
Downside: Your loan's gonna cost you more in the long run because of that higher interest rate (6.625% is no joke!). Plus, you might get hit with PMI, which is like giving away extra money every month for nothing.

Opting for 20% Down:
Upside: You'll save a ton on interest over time. No PMI fees. Your monthly payments? Lower.
Downside: It means parting with more cash upfront. That's less money in your pocket for emergencies or for furnishing your place.

So... Pay more now, save more later (20% down) or keep cash for a rainy day but pay more over time (14% down)? 

Good luck!!

Post: First Property Out of College

Devin De LangePosted
  • Investor
  • Myrtle Beach, SC
  • Posts 24
  • Votes 30

Hi Danny!

Jumping into real estate right after college with a buddy is a bold move, but it's definitely doable with the right planning. Here's the lowdown on your questions:

Buying with a friend? Sure, it's possible. Just make sure to lay down all the rules, responsibilities, and what-ifs in writing. Think of it as a safety net for your friendship and for your investment.

LLC or not? An LLC could be a smart move for liability protection and tax reasons. It makes handling the partnership cleaner, especially if one of you wants out later.

Affording a $500k+ place? With your combined incomes, it's within reach. But, lenders will look at more than just your salaries. Chicago's market varies, so $500k-$600k might get you something nice, depending on the area. Definitely worth a deep dive into the local market.

Ownership changes? If your friend bails, having the property in an LLC makes transferring shares simpler. Just ensure there's a clear agreement from the start on how this would work.

Property manager for one apartment? It could ease your workload, especially with those long work hours. If you'd rather not deal with tenant calls or maintenance issues, a manager might be worth the cost.

    You've put some great thought into your plan. You'll want to cover your bases legally and financially. Chatting with a real estate attorney and a financial advisor could help smooth out the details. 

    Good luck!

    Hi Andy, 

    Great question! I look forward to seeing what others say too! 

    We have our clients purchase renters insurance and show proof on that insurance that their insurance covers animals. We also make sure our insurance on the property includes the breed of dog the renter is bringing. If you wanted to take it a step further, you can have them add your LLC as an additional insured to their insurance. Additionally, you can charge them a pet deposit and pet rent, as well as call it out specifically in the lease in the additional notes section (i.e. Tenant is responsible for all pets on the property and any damage done to the property or to others as a result of having the pet on the property).

    Hope this helps!

    Post: Purchasing a new home

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Gladys, 

    Thanks for posting! 

    My husband and I just bought a new construction home in August. We did buy it with an agent, but I am not really sure it was needed, as we navigated the process ourselves for the most part. 

    The biggest recommendation I would make is to get an inspection done with a third party you choose. The builder may say they do their own, but you need a checks and balances systems. Also, make sure you read through and understand their warranty process. Most builders have some sort of one year warranty and list what is covered. Understand where your coverage falls. Typically, builders come back after a year and do touch ups after settling. You can prepare yourself for that by having another inspection conducted 10 months in then bringing that to the builder to see if they can fix anything outstanding for you, before the warranty is up (if applicable).

    In summary, buying a new build means you have to arm yourself with information so that you know what you are getting into. You will be the one to feel the growing pains of living in the home first, so arm yourself with what you can to make it as seamless and painless as possible. Things will still pop up inevitably, but at least you are coming as prepared as you can. 

    Hope this helps!

    Post: New investor and Networking

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Anthony, 

    Congratulations!! You are taking a monumental step towards a really fun and rewarding future. 

    "Rich Dad, Poor Dad" is what started it all for me. After I read that book, I couldn't go back to a typical life. It opened the door to a world of possibility for me. 

    You are doing all the right things -- immersing yourself into this world with reading, podcasts, and social media -- and BP! 

    This community is great and super supportive! Feel free to connect with me, and if you have any questions or need someone to run something by, I am all ears! Good luck!

    Post: SDIRA recommendations requested

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Kelley, 

    We did some research into this several months ago, and felt a good vibe from Madison Trust and American IRA. The latter seemed to be a more homie shop, and the former more corporate.

    Hope this helps!

    Post: New to the Real Estate Investment market

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Allayne! 

    Welcome! It sounds like you have a go idea of what you are looking for -- commercial units and MFH. That's a great place to start. Most folks, myself included had to figure out which niche we wanted to start in, and that sometimes can lead to analysis paralysis. 

    It sounds like you are open to different locations. So, I would start with asking yourself a few questions:

    - What is my budget? 

    - How will I be financing this deal?

    - What capital will I be investing vs. what capital do I need to raise from other investors?

    - What lenders would work best for what I am trying to accomplish? What conversations can I start with those lenders? 

    - What markets make the most sense for my budget? 

    - How can I find an agent that is knowledgeable in the commercial side in the markets I am interested in? 

    Hope this helps!

    Post: Buying a property with a mortgage

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Cory, 

    Are you assuming the mortgage? Or are you simply buying a property from someone who has a mortgage on it? 

    If the latter, the seller uses the sale of their property to pay off their mortgage; and the difference between their mortgage (the amount they owe) and the sales price is what they walk away with. So technically, the money you are paying them for the property is what they are using to pay off their mortgage, but you are not the one doing it. 

    Hope this helps.

    Post: Estate Sale - Should I buy myself?

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi Erik, 

    To kick off analyzing the potential of this deal, and whether or not it's worth investing in, I would ask you what your end goal is. Do you want to take on the large project of a flip and sell, and walk away with a lump sum of capital, or do you want to buy and hold -- putting in the needed renovations to make it renter friendly and then getting a tenant into the property to pay off the asset? In the buy and hold situation, depending on what you buy it for, the expenses of owning/taking care of it, and how much you can rent it for, you could have some cash flow each month and have a second property that appreciates each year. 

    The other big factor here is -- once you make the above decision, what are my expenses likely to be? How will I finance the deal? With a hard money lender for a flip, or with a more traditional lender for an investment property. 

    To summarize, I would ask yourself -- what is my end goal? How much work do I want to put into this? What financially makes this worth it? And if you can determine which strategy to go with and it makes financial sense, you go for it. 

    I hope this helps!

    Post: Looking for partnership for investing in real estate

    Devin De LangePosted
    • Investor
    • Myrtle Beach, SC
    • Posts 24
    • Votes 30

    Hi AraBella, 

    Thank you for posting this question. I think it needs more visibility. As investors, we hear terms like creative financing, partnerships, or other people's money, but it is a struggle to take a theory and put it into practice. This is a question is one I had as well, so in you asking, I was prompted to dive in and do some research. 

    It looks like there are a few different ways to find potential partners - joining an investment club, real estate events in your area, other real estate agents, reaching out to property owners and managers you know, friends and family, lenders (hard money, traditional), financial advisors, crowdfunding, targeting your network (which I am sure you have a great one being a real estate agent!), online investment groups/investing websites, and social media groups. Reading through all these articles, the biggest takeaways seems to be expanding your network and reach, building your personal brand (who are you and what are you bringing to the table?), having an elevator pitch of what you are specifically looking for, and being ready to pitch yourself and your idea when you have the opportunity. 

    Reach more people, and be prepared -- seems to be the takeaway. The last 'p' -- just because I love a good alliteration -- seems to be patience. If you are newer to partnerships, you might not have a name for yourself or a portfolio to back up what you are bringing to the table, so it is likely going to depend on how you build relationships and how you can help someone else. That will eventually come around as you become a more established and trusted name. 

    I'm going to take my own research and start implementing on my side too! This time next year, by doing a little each day, I hope to have grown my network and taken steps in the right direction towards partnership. 

    I hope this helps! Feel free to connect with me! Good luck!