All Forum Posts by: Dominique B.

@Manda Gouvion I looked into real estate for the first time in Oct 2020. I closed on my first property Dec 2020. Currently looking at deals with a goal to close on #2 by April 2021.

@Benjamin Farmer sure, I used Property Inspection Pros.

Yes, very aggressive lol. It's a short term sacrifice in order to hit my goals and allow me to retire without being leveraged on multiple properties. Fulton Bank is who I went through but if your properties are held in your personal name then you'll have more options with other banks. Good luck!

I did knowledge buidling for about 2 weeks straight then went into action. My FIRE goals were crystal clear before I started so it was just a matter of picking a path (buy and hold, fix and flip, REITs, etc.). Being out and hands on was extermely valuable (and fun) to me, I learned alot getting into the weeds.  Good luck on your first close! July will be here before you know it. 

@Varun Batra I knew nothing about REI prior but decided to learn about it in October 2020. From first research on REI to closing on this deal it took me 7 weeks. Patience is not my general strong suit lol.

@Alexcia White thank you. Yes, fully funded by me. No partner. I found a small local bank that offers their product with no seasoning or time restrictions. The process takes about a month. I’m 2 weeks in already.

Sure, hope this helps:

1. Personal capital for this deal was acquired from my W2 savings over a 10 month period.  

2. All in cash purchase for this was 62k. 

3. Home is owned free and clear.

4. Local bank will be extending a HELOC at 75% of appraisal of property.

5. For example purposes, lets say the home appraises for 68k. I now have a LOC for $51k that I can use similar to a credit card and I am now positioned as a cash buyer to sellers.

6. I find another deal that meets my criteria. I pull the LOC plus using personal capital to cover the difference and purchase H2.

7. H1 is now leveraged. H2 is now owned free and clear. 

8. CF from H1 and H2 plus personal surplus income is fired at the paying off 51k aggressively and quickly. 

9. Once 51k is paid off, H1 is now back to free and clear and 51k is there to be pulled out again for purchase of H3.

10. Pull 51k, H1 is now leveraged, H2 and H3 are now owned free and clear. 

11. Repeat steps 8-10 over and over to scale.

Thank you! Yes, I own it free and clear and it will only be leveraged when I find another similar deal and pull the HELOC to use as another all cash buy. I ran into a lot of no's for the same reason as you, that HELOCs on investments, especially ones held in an LLC, are not common (from what I can tell). I was able to find a couple banks that offered HELOCs on investement properties but not on ones held in an LLC. I was very,very close to just switching the property out of my LLC to my name when I made a final call to a small local bank and recieved a yes. Look into your local small banks and credit unions.

@Chris Ramos with the bank I'm going with there is no seasoning period required. The HELOC will be based on the appraisal (taking place next week). I've had my realtor resource run comps and it should fall into the 65-73 range.

@Chinyere Orie thank you. It was a duplex converted to a SF. I thought about converting it back to a duplex but I was happy with the returns as a SF. I still may convert it back to a duplex in the future though.