All Forum Posts by: Ethan Gidcumb

Hey Ran-D! One multifamily operator told me how it actually gets easier to manage larger properties because the quality of property management you are dealing with gets better as you scale up. They explained how it's not too much work managing less than 10 units; but, anywhere from 10+ to 50 is a bit more challenging. They added that once they crossed that 50-unit threshold, their property management was so skilled that it was actually less work to scale up to 250 and 300 units than it was to self-manage something like 30 units. 

Wishing the best of luck for you on this exciting next step!

Hey Daniel! Both Doug and Sloane offered great pieces of advice. I would also like to add that most people find DSCR loans suit what they are looking for when they are planning on holding the property for a longer period. However, as Doug mentioned, it may be smart to do flips in order to accelerate the rate you are obtaining properties; in that case, you could even use a bridge loan to hold a property for 6-24 months. Of course, a short-term loan is going to have higher rates. So it really all depends on what suits you and your wife's investing goals.

Hey Taylor! I would agree with what Robin explained and would add that as you become more experienced, most companies will end up charging less on certain fees, such as an origination fee.

Hey Mateo! One hurdle you might face with Private money will be if they allow the owner of the property, they are lending on, to occupy the property. Just as Samantha mentioned, I think finding a local company to work with would be a great option since they will be familiar with the local laws and may be able to give you referrals for other parts of the flip.

Hey Francis! Some of the biggest things I have seen online from other investors is the lender's reputation. For a lot of people, they preach finding somebody that won't change terms on you on the 11th hour. For this, I would really recommend finding somebody that you can be referred to, or, finding somebody with really great reviews.

I would recommend finding your own agent, not the listing agent,  because then you have somebody dedicated to finding the right property for you and they may have insight on Off-market deals as well. 

Great advice Taylor! My goal is to invest outside of my state so you mentioned the risk of contractors not meeting your expectations, I could definitely relate to that. How did you go about building a good team?

Hey Sandy! A lot of HML's will cover the rehab portion of a deal. Networking within your own circle/community has been a way that I have heard about a lot of lenders myself. Also, many lenders provide their services in multiple states; so, if you can't find somebody directly next to you, you can always widen your search.

Hey Lala! In the case that you are using hard money/private money, I've seen lenders allow refinancing on properties as well. So in the case that it made sense for you to go down that route, you also have those options available to you. 

Hey Lucy, congratulations on taking the first step!

From talking with a lot of others in your situation, I've heard a lot of people like starting with flips because of the upside once the project is done. Some that have done house hacking found it more beneficial for their situation because they came into ownership of a property from a family member or friend,  and it did not require as much maintenance and repair.