All Forum Posts by: Dillon Francis

@Suzette T. that is some amazing work your friend is doing! Good for him or her. I appreciate your suggestion. Seller financing seems to be a trend amongst some of the replies on this post. I have not given it much thought, but it sounds like I need to keep that strategy in the back of my mind when I am searching and analyzing properties, maybe even throwing in that keyword in the search criteria.

The PNW is so beautiful! Although expensive in the metro areas, it has some of the most stunning nature I have ever experienced. I hope you get to journey here some day too!

@Derrick Dill you make another great point! There is an opportunity cost to be determined when borrowing against your 401K. I appreciate having the option to use such a strategy if I really needed to. 

I am looking into the types of renovation loans now. Thanks again Derrick!

@Tanner Sherman so many creative ways to finance a deal with the help of others, whether it be with their money, time, or experience. I now see that there are quite a bit of ways to invest with little cash to start, however, I agree with several of the other forum members who have commented on this post, in that its important to have some cash for reserves. I still have a bit of saving to do, but all of this information helps get the gears turning during that time.

@George Blower I appreciate all of the information! That is good stuff! 

I see that you are a retirement accounts attorney. Are you involved in 401k loan distributions as part of your profession?

@Derrick Dill Okay so it sounds like you are saying that I could make up the additional downpayment in equity, if I am able to add value to my home in those six months.

Great idea regarding the bedroom addition, and renting it out would be a bonus! I have heard of renovation loans but have not looked too much into them yet. Are you saying that is another option instead of switching to a conventional mortgage, or can you stack the two?

Funny that you mention the 401k loan, because a coworker of mine just told me about that strategy today. I will also look more into that. In doing so, would you recommend talking to a lender about that first or my 401k holder?

@Frank Hinck that is all great advice. I really am learning so many new things from you and my other fellow BP members. I see now that there are workarounds to not having a lot of cash to start with, but they seem to be a bit complicated and risky. I will look more into those strategies you mentioned to at the very least educate myself on them. I also agree with you and Eric as well, that it is wise to have some money put away for reserves. Thanks again for the advice Frank!

@Derrick Dill I didnt even think about that as an option. There are a few things I am wondering about though. First, I'm guessing there is a certain amount of time that you must wait before being able to refinance, do you know how long that is in this instance? And second, since you would be switching to a conventional mortgage in that instance, would you have to put more money down to make up the difference from a 3.5% DP to a 20% DP?

@Joe S. I was not aware of that. Thank you for correcting me and teaching me something new!

@Adam Martin thank you for sharing part of your journey. I am beginning to realize that even I got seller financing or FHA loan, or just the most minimum downpayment possible, I am still going to need reserves for such instances that you mentioned. I figure I will take the time needed to save up and not try to take any shortcuts that could hurt me in the long run.

@Mike Dymski I appreciate the suggestions! I eventually want to start using the BRRRR method, but I know that typically involves a smaller chunk of capital to begin with. I do like the idea of seller financing and will keep an eye out for those deals!