All Forum Posts by: Ivory Hayes

@Carlos Oros the question is what kind of investor are you striving to become? There are particular routes for particular niches. You must first assess what area of real estate you truly would like to tackle, then I would say the next step comes more appropriately after that.

I would definitely suggest having some sort of income to subsidize all of the costs included with real estate investing. Either a regular job or one involving yourself in real estate works well if your savings can't take on the venture.

You can also study ways to invest without using a lot of your own money, but that goes back to assessing your direction in real estate investing. Any lender, if you're looking to leverage your credit or any other assets you have to use other people's money, will be looking for some sort of income that you have coming in that can support the potential lending of funds.

These are all food for thought, but I would definitely start with assessing your goals and the different niches that are out there for real estate investors.

I hope this helps. Happy Investing...

@Bill Gulley I sense your knowledge is unlimited in this area and I simply appreciate you entertaining the conversation. Creative finance cognizant is definitely apart of the mission/goal for 2016 and beyond. To answer a efew of your questions... There are two opportunities. One is a duplex and the other is a 4-family. I'd like to find 100% financing under one roof on the deals but can come up with 20% down for each of the properties, but the down payment would also be borrowed money so there's extra cost on that borrowed money as well. These are buy and hold long term investments so I'd need the longest terms possible. Of course I'm looking to, after a year, refinance the properties and pay my lenders off but the longer terms are to reduce immediate overhead and not be under the extreme pressure of a balloon type money situation. Do you have any advice on how to positively progress in regards to the particular opportunity at hand?

Welcome aboard John. Have fun, learn a bunch and happy investing...

A national lender is the route I chose to take. I got nowhere with local lenders. A corporation might have made a difference in order to qualify for a commercial loan but I believe I would have still been in the same position as local banks have a bit more control over lending policies. So it wouldn't have made a difference if I applied as an individual or corporation once they inquire about the primary residence of the owner of that company I believe I would have been right back in the same position. I'm still in the process with the refi through imortgage. It's become a bit of a drawn out process but I can let you know how it works out if you would like to keep in contact.

You came to the right place Will. Enjoy the process of learning as much as you can!

Happy Investing...

Welcome to BP Mark, go after your goals intelligently and with confidence! Go get'em! Happy Investing...

@Boyd McClean, I especially like your point of how to address the situation of pm lending. Often times individuals who are looking for and need money approach the situation from that perspective, as in we need money. But approaching the situation from a different angle allows your desire for the money to take a backseat and affords the lender to connect with you as a person and your needs. Thanks again

@Chi Kanu that's great advice, thank you. I've been down the family and friends route and they all have that scared mentality, which is common, where they'd rather see me be successful first at what I'm presenting to them before they decide to throw any money in. Which is why I'm building my case with the 4 rentals I've obtained in 2 years and plan to add at least 2-5 more every year from this point on...

Hard money might be easier to find, as you mentioned but I hear that private money usually has lower costs because there's more flexibility in regards to the terms. Makes sense to me but in your personal experience have you found this to be true?

@Darren Eady I'm looking for a PM lender that offers longer terms than traditional hard money financing. I have heard that 20-30 year terms private money is possible. Simply put, pm lenders sit their investment in an investors deal and earn 5-7% on a long term basis instead of earn close to nothing in a CD or Bond. This is what I'm seeking, seeing as how I'm a buy and hold long term investor. I have a few sfh's and condos but I'm getting ready to invest in multi-families and need a solid source of funds for long term investment purposes.

@Chris Dawson I appreciate your insight. How do local lenders advertise their services besides word of mouth and possibly online. I'd be trying to tap into a local market conversation without at all being local. Would realtors or property managers have contacts to local pm people? I guess I'll never know unless I start asking right...lol Thanks!

I'm not well versed on the topic of co-ops and how that plays in to your refinancing options but most traditional financial institutions usually lend on anywhere from 60-75% (varies by institution, community banks vs big banks) of the property's value minus the owed amount. Certain criteria financial institutions consider include but not limited to are, credit score, debt to income ratio and income.

Hopefully this helped a bit... Happy Investing!