All Forum Posts by: Erik Browning

@Ty Spinks It's great you want to move forward into RE Investing, but sometimes folks need to come back to Earth. What I mean by that is - do you have cash? 

Cash for both sustaining your bills (if you want to go full time) and cash for a deal. You can find OPM, however the majority of us starting out do not have access OPM. I recommend you have about 35% of the purchase price in cash to account for the initial purchase, holding costs, and loan costs. Or leverage other products that are geared toward primary residence purchases. Buy a home using a 0% down USDA or VA loan. If you don't qualify for either, consider a 3% down conventional on a property you can renovate yourself to get the experience as well as the best financing terms available.

Yes and No... here's why

Yes - if you feel confident in moving forward with this on your own and you know how to correctly fill out a RPA as well as moving the deal forward so you don't miss your close of escrow, go right ahead.

No - You likely are not equipped with the skills to make the deal close on time and will leave things out that are essential to 1 - stay compliant with local and federal regulations, and 2 - there's a good chance you will fill out the required documentation incorrectly, which will make you fall out of escrow.

I recommend you trust the agent you hire - also, the seller's side pays their commission - not you. You have nothing to lose buy getting a good, solid agent.

You're right, I misinterpreted the question. I was assuming you were wanting to buy a new home with the least amount of $$ down - I was suggesting a renovation loan @ 5% and gain equity at the completion of the project. But yes, a HELOC is your best bet. Finding one for your primary is simple, however an investment property HELOC is challenging to find lenders that will do it.

@Pam Wils

It really depends on your situation. We are not sure of your financial position and if you can handle that. Either way you choose, you will learn something about either the industry or yourself. You know what’s best

 Hey @Wesley I. I'm a lender and would like to talk more about this. Going to send you a DM.

Hi @Pam Wils, I recommend you first build out your social media presence. Including your Bigger Pockets profile. Add a picture, your RE license Number, and a little about yourself. Take these easy steps first and participate in the conversation.

@Steve Hungerford it's certainly not handed to you on a silver platter, however there are dedicated consultants at banks here in California that push your plans through the permitting process while also funding the ADU project.

Compared to investing on your own, where you don't have a dedicated consultant, this is very easy. 

Not sure about a website, however the tenant can contact their HR department to dedicate a portion of their paycheck to your account. This is called an allotment.

Hi @Vanessa Banh, California is making it very easy for folks to build ADU's in response to the housing crisis, and there are a variety of options on how you choose to proceed. I think it's a great way to start out investing as well as a way to provide affordable housing to folks in CA.

I have no affiliation with this institution, but Redwood Credit Union has an entire program dedicated to ADU's here in CA. You can find out more here: https://www.redwoodcu.org/abou...

Wish you the best of luck, feel free to connect!

Both views are valid, however the PM should have fulfilled their roles as the PM company.

This is not the tenants fault, despite their incompetence, but the Property Manager should... manage.

Long shot here @David Korchak, was there any sort of written documentation to the tenant with their acknowledgement of the appraisal? If so, maybe that would be the only way the tenant could be held responsible.

The even BIGGER issue here: was your rate locked? Also will this extend your funding? If so an you rate expires, I feel deeply sorry for you since the bond market is outrageous these last 5 days :(