All Forum Posts by: Donald Bryant

@Don Konipol Thank you for a great response. I am completely new to real estate investing and I do not have much knowledge. I'm very eager to jump in, but I also don't want to make a mistake that could destroy my finances and credit. With the example I gave, my plan was to save every dollar the property made each month. I do realize that there would be little to no gain in income through cash flow. With the very small area I'm thinking of investing in I feel that even if the market dropped I could still get out of the property with loosing a small amount of money. After seeing everyone's input I feel that maybe I should just wait until I gain more knowledge. I do not know anything about buying foreclosures, estimating, rehab cost, or ARV. I felt the strategy I mentioned would be less risk and an easier way to step into investing. Thank you

What is your opinion on purchasing homes at market value for investments? I live in a small farm town in northern Indiana with one of the best school districts in the state. Because of this homes in my are are valued much higher than surrounding towns. There are rarely opportunities to purchase real estate. Once they hit the market they’re sold within a day or 2. Would it be a wise decision to purchase single family homes that are turn key at market value? Over the last 5 years my personal residence has appreciated 6% per year. My thinking is to put down 20% on a 150k home giving me roughly an 800 mortgage and in return renting it out for between 11-1200 per month and doing this 5 times before I start to pay down each mortgage 1 at a time. What are your thoughts? Thanks

I decided that I wanted to achieve financial freedom through real estate at the beginning of this year. I have managed to save 20k to get started. First of all, is 20k enough to really get started in the Midwest? Should I wait until I have more money saved? I have a decent income, job history, good credit score, and low debt to income. I know I could put 20k down on a deal, but I’d be right back to saving money for the next deal. Is this the best strategy, or would there be a better way to obtain more deals at a faster pace? What would you do? Thanks you!

Hello, I have finally saved 30k to start investing. My question to everyone would be if you had to start over in my position how would you invest the money and why? I've done quite a bit of research, but haven't done any kind of real estate deals yet. I also don't have a network of any kind, or know anybody involved in REI. Thank you.

Hello,

I've been researching some different strategies for funding my first deal. I haven't found a deal yet, or started looking for that matter. I've recently stumbled on a few forums where investors are using personal loans to fund deals. I have an excellent credit score, good income, and a low debt to income ratio. From what I have gathered I should be able to get a personal loan for up to 100k at 11%. When comparing this to a HML it seems like a no brainer. Although its a comparable interest rate I wouldn't have to pay any points. I'd be able to negotiate better seeing that I could pay all cash. I could keep using the money over and over after refinancing. Obviously it would be a higher monthly payment considering I would have to pay principal and interest. Is there something I am missing here? What are the downsides to a personal loan? Would it still be possible to take out a mortgage on a property with a 100k person loan? I'm concerned because I've never heard this strategy mentioned in any books, podcasts, ect.. I would appreciate any information.

Thank you, Donald Bryant 

Sorry, I’m not sure how to directly respond to someone. 

Thanks for the Information. How difficult is it to transfer a property from an LLC to an individual? Is it just a matter of signing a form?

HI, I'd like to start by saying I'm completely new to real estate investing. I've spent the last several months reading books, researching the internet, listening to podcasts ect.. I know a lot of people say you should find a deal then find the funding, but without any previous experience I would like to have a better understanding of how hard money works. I am from Indiana. My area has a lot of high paying factory jobs and real estate that can be found for very affordable prices. I feel that it would  be an excellent area for buy and hold investing. Here are my questions and concerns:

It is my understanding that you must have an LLC to work with most hard money lenders. Is this always the case?

If you set up an LLC to borrow money from a HML is it going to be an issue when you try to refinance with a traditional 30 year mortgage?

I've been approved through a hard money lender website for a 1 year term. From what I've researched most banks will only refinance a property that you've had for 1 year. How do you close on the house before your 1 year term is up with a HML?

When using a hard money lender do you have to have an estimate from a contractor to present them?

Any information will be greatly appreciated! Thank you!