All Forum Posts by: Fahadbin Alam

@Michael Kinsella Still a little confused. Because let's say I buy a house using the BRRRR strategy and used a hard money lender. After I do that and I refinance the property, and let's say I borrowed 200k. And after I refinance do I then also have to pay a little bit more of interest or just the premium? because let's say it's 12% interest and that's about 25k. And you said it's monthly so if I divided that by 12 it would be a fee of 2k a month but If i gave all that money back in the 3rd month do I still need to pay off the total 25k interest?

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Does anyone have favorite negotiation skill books because I've ordered the Trump book. I also seen that people could bring the purchase down like 50% just from talking.

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I heard that nothing matters more than sales and marketing I'm just wondering if anyone has their top tier books in mind?

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Originally posted by @Jonathan Bombaci:

Hi @Fahadbin Alam this is a common question we get all the time when we’re helping Househacker’s in greater Boston. Let’s go at this 2 ways:

FHA Ladder: If using FHA loans to househack.

1. Yes you can save up another 3.5% for your next downpayment.
2. You'll need to refinance out of the FHA loan to reuse it but also explore your state specific housing programs. We have mass housing which is a better version of FHA you could carry both a FHA and Masshousing loan without any issues.

3. Assuming you're only buying assets that will cashflow when you move out, and you're running the calculation with at least 25% load for vacancy, maintenance, capex, and management, the property should actually decrease your DTI ratio making the next loan easier.

Conventional financing. You can get 5-10% down conventional financing on owner occupied 2 families from many credit unions. We even did this for a client on a 2 family with 3 units in it last year. If you go this route you don't need to worry about freeing up the FHA loan for the 2nd purchase. You can just buy a new owner occupied 2 family every year and max out the relationship with the credit union before moving onto the next one.

I hope this helps, best of luck!

Jon

So if my first property still has the fha loan on it and I just do a regular conventional loan on the second property. Do I still need to live in the FHA or does that requirement goes away after a year?

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So when you get a loan from a hard money for let's say 200k with a 12% interest.

1. If I paid it off the next month do I still need to pay that interest?

2. How does interest work like does it go away if I paid for the whole thing. for example like a membership you would get a good deal if you paid annually.

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Originally posted by @Ivan Barratt:

@Chris Baker keep your cash in the bank and get more education. Wait till you have more liquidity and are able to invest 50k into a deal without breaking a sweat.

I agree with @Heidi Pliam that you should get more familiar with both debt and equity deals and the pros and cons of both.

Take a deep dive and read/listen to actual books on apartments, syndication, and creative finance.

NOTE: The next economic winter is approaching. Good deals are out there but not so easy to find.

Happy Hunting

What are some books you would recommend?

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So I want to go big because I feel like I can handle and I see that a lot of investors like brandon turner says if they can go back in time they would just invest into 5+ units.

My questions is how would you start doing so. I have about 20k, may not be a lot, but I can try and have partners.

1. would you need to get a business loan for these?

2. what would be a good place to start?

3. are there any books on apartments and foreclosures?

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Great job on the 18 unit apartment complex how did you manage that?

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Honestly man just word of mouth and simple hey you wanna move in or have a private just bring people in for.

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Backstory: So I've read most of the BP books and I have 1 property right now and it's a BRRRR, but then I heard that the best deals are foreclosures and auctions.

1. I've thought that auctions are bad and I shouldn't touch them.

2. What is so difficult about foreclosures that people don't talk about them as much?

3. I was thinking of going to the court house steps and basically see if i can get a good deal within 20k, what do you think?

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All Forum Posts by: Fahadbin Alam

Fahadbin Alam has started 81 posts and replied 160 times.

Post: Can someone explain the interest rates for hard money?

Post: Best negotiation skill books?

Post: Best books on Sales?

Post: How do you house hack for the second property?

Post: Can someone explain the interest rates for hard money?

Post: New member, invest through syndicator or directly?

Post: How does one get into investing into apartment?

Post: Advertise for Military Tenants

Post: Advertise for Military Tenants

Post: Can someone explain foreclosures?