All Forum Posts by: Account Closed

At the most basic level, the higher interest rate on my investment purchases means that my monthly mortgage payment is going to increase, which means a DECREASE in monthly cash-flow.

Theoretically though, a rising interest rate for home-buyers could mean fewer people can afford to buy their own homes and will be forced to rent longer... which means rents could increase with that demand...

HI Edkesha,

If you haven't already discovered the BP podcast, I highly recommend binge-listening to a bunch of the past episodes for tons of creative ideas about how different investors have gotten started--many of them with very limited funds!

Also, I haven't read it yet, but I know BP has a book on getting started with low/no money down that you can find under the Education tab of the website.

Good luck getting up and running! :-)

Hi Tawanna,

You don't specify whether or not you know about the market that this rental property is in or what type of market you are looking for or is you're flipping or purchasing turn-key, but I want to know about the market: if the population is growing, if jobs are growing, if the market is diverse or if the jobs are mostly dependent on one large employer, what are the schools like in that area, low crime, strong rental market, etc.

For the property I want to see a Proforma that shows at least 1% gross rent to purchase price (if it's a rent-ready property), I need to know the estimated taxes & insurance, mortgage and interest. Then I need to figure in my property management fee plus at least 5% set aside for maintenance and another 5% for vacancy (that is assuming a strong rental market and, again, assuming it's a fully rehabbed property).

If you're interested in turn-key, check out realwealthnetwork.com for lots of FREE info--I think they have a couple of Chicago affiliates.

If you are thinking of doing a BRRR property instead of a rent-ready property, check out Brandon's BRRR calculator in the "tools" section to see what kinds of info you would need to get from the broker.

Good luck getting started!

If you are looking at purchasing single family homes or 2-4 door duplex/apartment building using conventional mortgages, you will need to get the mortgage in your personal name. I recommend finding a mortgage broker in your area and making an appointment to go in and find out how to get started. Even if you don't end up deciding that particular broker is a "good fit" for you, you will have a lot more information than when you started and will have some ideas for further research you can do to move ahead.

From an asset protection stand-point, I recommend reading Garrett Sutton's book, "Start Your Own Corporation".

Good luck!

I recommend listening to as many of the BP podcasts (go back in the feed and listen to the old ones too!) to get *tons* of ideas and inspiration for next steps. It's amazing to me how many investors they interview who started out really young. Kudos to you for all that you've done already at such a young age! :-)

Good luck!

If you go to realwealthnetwork.com and join their FREE network they have lots of free info and webinars for beginners that helped me get started. They recommend about 15 different growing, cash-flow markets and vet all the turn-key affiliates so that I am not going into a market 'blind'--all of their affiliates also have property managers in-house or partnered. They also have free counselors (you get to choose yours) so I've always got a 'big brother' to call when something comes up that I'm unsure about during the purchase process or with one of my property managers.

If I didn't have a big network like this helping me do my homework in the markets and helping me with questions/problems, I would definitely want to know the market I was buying in inside and out and maybe even have a relative there or someone who could check in on things regularly. I think there are probably a number of 'horror stories' out there from investors who used sketchy providers...

You'll get lots of ideas and inspiration from those four podcasts I recommended above. :-)

Hi Jerry, I can't speak to your question about bringing in investors since I haven't done that, but I do invest out-of-state. We have several turn-key rentals in growing markets with good cash-flow that we have found through another big real estate network, so I feel comfortable investing out-of-state with that network "at my back". If you're interested in getting more education on investing out-of-state, I have found the following free podcasts to be really helpful:

Get Rich Education with Keith Weinhold

The Real Wealth show with Kathy Fettke

Real Estate News with Kathy Fettke

The Real Estate Guys

I use Chemical Bank and they just have me send them my HELOC statement that shows the available balance. Then a couple of weeks before closing they'll have me put the liquid funds into my account and prove that they're there. I'd just talk to your lender and find out how they work that since I suppose they could all do it differently.

Hi Westen,

If you haven't already started listening to the BP podcast, I *highly* recommend it! Josh and Brandon interview LOTS of investors who use all kinds of creative financing beyond conventional loans. The podcast is great for ideas and inspiration *and* they regularly talk about all the cool tools/resources available on this website that we might otherwise not know about.

Good luck!

Erica

We have been allowed by our lender to use HELOC funds for both down-payment and reserves.