All Forum Posts by: Eric White

Great information. Thanks for the response @Upen Patel!

Hi Everyone,

I'm very new to REI and have a few questions about the best types and ways to obtain financing.

I have yet to invest in any properties, but I am planning to invest in single-family or small multi-family homes with a buy and hold/rent strategy. I am from New Jersey where home prices are fairly high, which obviously translates to higher down payments on conventional mortgages. Here are my questions, any thoughts and advice would be greatly appreciated!

1. Besides potentially higher interest rates, are there any other down sides to using a portfolio loan vs a conventional mortgage? The main reason I ask is because of the down payment. While I do have a fair amount of money saved up, I am concerned about having it all tied up in one property/investment. I almost feel a lower down payment with higher interest rates may be favorable so long as the property is still positive cash flow. 

I know there are the conventional mortgages with less than 20% down with PMI, but I doesn't sound like you get a tax deduction on the PMI premiums. It also sounds like it might be worth building a relationship with a portfolio lender for future investments.

I checked out this article from Brandon, which was helpful - although he primarily used them to acquire more properties: https://www.biggerpockets.com/renewsblog/2015/04/06/portfolio-lender-loan/

I am wondering if there is anything that he didn't cover that would be worth considering.

2. Are there any major pros / cons for going with a smaller community bank vs a "big bank"? Do I have to live an that area in order get a loan from a community bank. I currently live in New York, but have roots and family in NJ - will that matter?

Thanks everyone!

Eric

Hello Everyone,

My name is Eric and I am new to BiggerPockets and real estate investing in general. I am eager to learn the ins and outs of real estate and am reading The Millionaire Real Estate Investor, by Gary Keller to get the ball rolling.

My goal is to own my first property by September 2016, and from what I have read and seen thus far a 'Buy and Rent' strategy sounds most appealing and an area I will focus on to start out.

Although reading and learning about something is great, nothing compares to getting out there and doing it. That being said, I'd certainly be willing to put in some work with a more experienced real estate investor(s) (research, paper work, etc.) for that valuable real world experience and education.

I currently work for a tech company in New York, but do have a financial background. I graduated from Penn State University with a degree in accounting, worked at Ernst & Young for a few years, and also have my CPA.

Looking forward to meeting some new people!

Eric