All Forum Posts by: Erich Beyer

The hardest thing in this market will not be finding cash buyers it's finding deals. Wholesalers he can post a deal on Craigslist and it's gone in 24 hours. No buyers list needed. If you have a deal you'll have no problem selling it. 

Best advice- go knock on doors. The monsters send out mail (which you probably should do), but you can save money and maybe snag a deal they don't get because you saw a dumpy house and knocked on a door.

Thoughts on the ARM.... rates are almost assuredly going in the next couple of years. We are locking in rates for as long as we possibly can. Would not recommend ARM. Almost a guarantee to leave money on the table.

I purchased my second property when I was 24 that was owner financed. It was a duplex in downtown Phoenixville we brought 20% she financed the other 80%. You don't need to spend a dime on someone mentoring you. Ask them if they will finance some or all, them tell your lawyer or agent to write it up. Everything you need to learn you can read on these forums.

Yeah you should be good. Doing two small one bed/baths really cheap for 15 (they are gutted) so as long as you make sure you're good with zoning then do it.

I could not recommended this more highly. You have to jump through hoops, but I just bought my second house with an fha loan that is 3 units (refinanced the first as you can only have one fha at a time). I think this is the best way, especially for young people to get a huge jump-start investing and learning about real estate. Feel free to reach out if you have specific questions.

Did you see if you could get a personal loan for the 20? Try that and if you can't ask friends and family. Also I never trust any county assessments for prices. I recommend doing all your own research and coming up with the value yourself. If you try those and come up with nothing post again and we'll look at other options.

Direct Lending Partners have an office in Bethlehem. We have closed one deal with them and are planning to use them again. They've been great and highly recommend them! Call @KevinEarnest he's on BP.

Hey guys (and gals reading), I hope I can shed some light. I did this when I graduated college. I bought a single family with an FHA loan, lived in it and rented out the other two rooms, then just this year (4 years later) refinanced it. If I had to do it again I would use a 203k loan and buy a 2-4 unit property. Use this loan. Use this loan. Use this loan. This loan is an FHA loan but gives you the ability to wrap renovation costs into your mortgage, so if you buy a deal you should have no problem getting the forced appreciation you need so you can refinance in a year with no PMI. To answer your questions....1. It depends on how much money you have, but if you use the 203k loan and buy a good deal you'll be in good shape.2. I believe the verbiage is for the loan you must plan on living there for at least one year (you'll be fine)(talk to a lawyer ;) 3. That's not a government rule that's a bank rule, and it depends on your bank. Usually if you're not living in the property the bank will want at least 20% equity in the property for a refinance, which again shouldn't be a problem if you've totally renovated something. Again, if you buy a multifamily your cash flow will likely be better AND for that year you won't have to share your space with randos from Craigslist....like I did. Let me know if you have any questions and best of luck.

Hey Kevin, the reason I ask is not to just plug your numbers in, but rather what I would pay would be based on what the cap rate is in your area. If the going cap rate is a 7, then I want to get it for a 9 or 10. If you're in Old City, I could pay 6 and still have equity the day I purchase it. If I don't know the area and what prices are like I can't make an accurate estimate of what I'd pay. Best of luck!