All Forum Posts by: Nick Bolding

I would start where you have confidence in your team. So if you have an agent and a lender that also have investments themselves. That's ahead of the game to some capacity as I'm sure they will be able to introduce you to a good property manager, contractor, etc. Additionally I would analyze how they obtained their portfolio and see if it is similar to your story. Meaning, if your lender got some properties paying 25% down on each but you are looking at creative financing, BRRRRR or some other form of investing they may not be the creative partner you need or vise versa.

Pick your poison ultimately. Trade in a lower rate for the ability to buy a new primary or don't buy a new primary unless you put a significant amount down. In reality you're trading out for a higher rate regardless if it is a DSCR or not. So again. Pick your poison. Definitely a pickle to be in but what a good problem to have considering that your 10 loans more than likely being in solid income with 25+ properties. Good luck.

I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.

@Jarrod Ochsenbein invest in a martlet that is sustainable, cheaper and scalable with an agent who can give good advice and guidance based off of market conditions!

@Doug Quist use a DSCR loan. It's a NQM loan product. Typically 25% down and typically if you BRRRR a deal you can refi out of a deal within 6 months due to it not being a qualified mortgage product. Plus way less paperwork and less to consider. Easiest way to scale your portfolio.

@Jacob Brush also. Side note. If you can learn how to dominate and create a solid business in this real estate market then you will create market share that most agents won’t get because they aren’t willing to put in the work now to obtain the business later. And when it’s “easy for most” it’ll come even more easier for you since you’ve built a solid foundation.

@Jacob Brush

Coming from the perspective of being a full time agent. You determine your outcome whether it’s a W2 job or self employed perspective as an agent. If you put in WORK as an agent and create a business worth owning then you will surpass most agents (from my experience a lot of agents don’t want to put in the work) and make more money than your W2.

@Quinell Dixon

We have all been there at some point in terms of analysis paralysis.

I highly recommend finding a market. Identify your cash flow and work with a local agent that is an investor themselves and has access to off market deals, contractors, PM, etc.

@Bradley Shuhart depends on your portfolio. If this is your only property. Probably wouldn’t have anything negative until you have the portfolio size to offset negative cash flow to gain appreciation. Also consider in how much of your portfolio is leveraged. Total percentage.

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $155,000
Cash invested: $35,000

Purchased this as a Primary Residence first. Took out a HELOC to secure another Primary, moved out of this home and Refi'd the HELOC into a mortgage. Usually it cashflows around $400/month; however, recently I connected with insurance agencies that will pay a Premium to do a short term lease for homeowners that have been temporarily displaced. That yields more turn over, but a much higher cashflow per month amount, in addition to property being better cared for by the renter.

What made you interested in investing in this type of deal?

Started out in property management and knew that I need to buy another house, get out of mine, rent it out, and then repeat the process from there.

How did you find this deal and how did you negotiate it?

We were living long distance, we negotiated the deal as a primary because they were asking $170k for it originally but there were some structural issues that we had to handle.

How did you finance this deal?

Conventional.

How did you add value to the deal?

Cut a tree down, had to re-brick one side of the house other than that nothing. It was a done deal when I bought it. Move in ready.

What was the outcome?

Secured a HELOC, moved out of the house, purchased another property, rented this one out. Repeat.

Lessons learned? Challenges?

Be there for the inspection. The inspection found issues that were wrong; however, after we moved in we realized that we needed additional electrical repairs that should've clearly been caught by inspector, but it was "an over-site" on somebody's end. My realtor told me I didn't need to worry about coming to the inspection if I didn't want to. Bad advice, especially for first time home buyers.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No, I went into it blindly out first buying from out of state as we were moving. My agent at the time that helped me was actually terrible, but overall the deal was well worth it as 5 years later that home is now worth $270k.