All Forum Posts by: Tyler Relph

I'm currently 33...I have about 15k in equity of the property I'm currently living in. No other properties at this time. I'm a veteran and thought about doing a 2nd tier entitlement which would allow me to utilize the remainder of my VA home loan (~280k) for the purchase of a different home for my family and I. I just got cold feet last time I seriously looked into it.

Hi everyone...I've done quite a bit of learning about real estate investing and have plans of starting into it one day. With that said, I am the sole provider of my 5 person family and will be starting into my doctorate in August. I recognize the income potential real estate has; however, I'm struggling with the "get your financial house in order prior to investing" advice I've heard. I'm stuck in the never-ending rat race that Robert Kiosaki talks about. If I continue to hold off on starting into REI, I'm concerned that I won't be able to start until 5-10 years down the road when my kids are older and getting ready to head to college. Any advice??

I appreciate everyone's guidance here. It turns out the extra lot has an easement on it preventing anyone from building or putting fences up. Turns out it was not as good of a deal as I thought. But I'm taking steps! Thanks again!

Looking for some guidance (and a vote of confidence)...I currently have a VA loan on a 3/2 that appraises for 165K with a loan of 149K (mortgage just under 1100 including P&I, taxes, and insurance). Current rental rates per Rentometer and Zillow show comps of 1300-1400/month. I contacted a VA mortgage company and got a pre-approval for a second tier entitlement, which allows me to utilize the remainder of my 417K entitlement with no money down. I will have to do some work to my current house to make it rentable; however, I estimate these costs to be around 5K. My fear lies in taking on two mortgages. Granted, I hope to rent out the my 3/2; however, in the event that it sits vacant, how do I overcome the fear of taking on two mortgages? Is this sink or swim feeling normal for newbie investors? BTW the new property is a double lot that has a home priced at a single lot rate. Initially, the property was listed in May16' at 329K and its now down to 280K. Looking to offer 250K and negotiate to no more than 264K. Once the other lot is sold, it should pocket us 90K. To me, this makes great sense; but, I'm still nervous about taking that first step.

So, I've listened to about 100 BP podcasts and am beginning to develop a mind for real estate investing. I understand and love the idea of the BRRRR strategy, but I'm getting hung up on a mindset thing here. If I have real estate in an LLC, does the bank use my personal credit to evaluate my credibility as a borrower or do they use my LLC alone? If they use my personal credit, how do you borrow to acquire properties knowing that it's going to offset your debt to income ratio and make you more of a risk (on paper) to a lender?

I would call and set up an appointment to do a meet and greet with a walk-through. Make it more of a "trying to determine what needs to be improved on" appointment. Once the walk-through happens, discuss your expectations moving forward.  Train your tenants to meet your expectations.  Business is black and white.  Raise the rent to meet market expectations and inform them that this is where the market rates are. Provide them a written 30 day notice of the change in rates and have them sign a new lease. Congrats and best of luck!

Recently, I was made aware of a high school vocational program that requires their students to build one house per year.  I thought this was a genius strategy to get free labor that is supervised by a  licensed contractor.  The school allows members in the district to put in a bid for their house to be built by this program.  A family had some land they wanted a house built on, so they placed a bid with the High School.  Their bid was accepted and the family was able to sit with a builder and design their house plans.  Cost for materials was 180K and after the house was finished, it appraised for 270K.  This family now has 90K in equity on their house they just built.  The students typically fall behind on their schedule, so a local construction company volunteers a few weeks of work to catch them up and finish the project by year end.  This strategy allows the construction trade to be taught to high school kids, a family to have a house built without labor costs, and the construction company was able to write the work off on their taxes.  Seems like win-win-win.

Good evening BiggerPockets world! My name is Tyler Relph and I live in Peoria, IL where I was born and raised. I plan on doing some creative business structuring that will establish my real estate investing portfolio.  Looking to add value to current investors.  Currently educating myself through BiggerPockets and reading various books suggested through the podcasts.  Absolutely loved Podcast 166 with Matt Aitchison and his funnel approach to serving clientele.  Looking to network with other local investors and learn as much as I can.