All Forum Posts by: Hunter Reed

Kiran, real estate is arguably the best long term investment that is offered. Learn to find great deals. I highly advise you to reach out to people that are experienced real estate investors and ask them to mentor you. The bigger pockets store has the best REI books that you could possibly ever read. That's exactly how I got started. I can not tell you which passive income strategy in real estate to utilize because there are so many. As you continue to grow your knowledge in real estate you will know which investing niche fits your needs. Good luck on your journey!

Jonathan, seller finance is a beautiful way to finance a deal. If the seller is willing to seller finance I would begin to reach out and build a relationship with them. This will ensure trust and possibly even better terms. Tell the seller your WHY and future goals for investing in real estate, chances are they would love to offer you advice. As far as the deal goes you want to make sure 85%-100% of the property is paid off. You do not want to carry over their existing mortgage payments. Once that is finalized you can then discuss a down payment and interest rate. You'll need to show them proof of funds. Ask the seller about a ballon payment, because you may want to do a cash refi in the future. The cash refi is how you're going to own the entire property. Wait for the rates to come down. Other than that the asking price seems attractive enough to cash flow from the rent. All in all make sure that your monthly rent from tenants will cover the sellers finance agreement. Good luck!

Anne,

As an investor call around and get the best quote. You want a high deductible and low premium. Insurance agents will push for the opposite because they make their money on high agreed premiums. Although the deductible is higher, which means that you will have to endure more damages before the agency pays out, most of the time it's never the case. Go for a high deductible to get the lowest premium possible. Lower the premium the less you have to pay monthly which correlates to more positive cashflow. Hope this helps. Good luck on your journey!

 @Jamie Wheeler Then you should defiantly lower the rent, to avoid vacancy.

www.homes.com is a great website to get started. Free MLS website. Contact agents, have them add your email to there list findings. You can also drive for dollars. Drive around write down the address of the property and then further that information into a county property search data base. Hope this helps.

Look the person name up on google. You don't have to pay a PI. First you have to run a property search on the investment you are interested in and then follow up with the information provided.

Find a mentor and read David Greene and Brandon Turner's real estate investing books! Congrats on getting started!

Adam, what is the future value of the home after the rehab is complete? Lenders are going to offer a 203k loan at 3.5% of the expected future value. As you rehab the property the lender will allow a rehab budget of the difference of the purchase price and ARV. If you do not have the funds then this deal will not work even with a co-signer. I would go the conventional route, split a 20% or 10% down payment with your partner.

What is your monthly expense? Mortgage, insurance, property tax ect.. If you have to lower the rents just to cash flow $100 - $150, is better than no cash flow at all. $785 is 1.4% rent to price ration. $685 is 1.2% rent to price ratio. I would look into lowering the rent as long as it makes financial sense to do so.

Paul, unless you find a property with 25k - 50k in built in equity then the brrrr method probably is not your best option. Here's why, rates are at 7% and could climb even higher within the next year. Buying a property to live in and brrrr would cost you money. Wait until rates come down to 3-4% so that when you do a cash out refi you would be paying a significant less on interest. Look into a 203k loan, it is relevant to an FHA but allows you to buy a distressed property that you can rehab and add value.