All Forum Posts by: Jackson Ebersole

Hey there Mike!Welcome to BiggerPockets and thanks for your service. It's great to have you here, and I'm excited to help you expand your real estate investing knowledge and network.As a private lender, I'd be happy to assist you with funding your residential real estate investments or answer any other questions you may have. Feel free to reach out anytime!Some key tips for networking and growing your portfolio:

Attend local real estate investor meetups to connect with experienced investors in your area. They can provide valuable insights and potential partnership opportunities.

When reaching out to successful investors, focus on how you can provide value to them as well. Reciprocity is key to building lasting relationships.

As you look to expand into short-term rentals (STRs), research the market thoroughly, understand local regulations, and consider whether you want to handle property management yourself or hire a professional.

Remember, growing a real estate portfolio takes time and persistence. Stay focused on your goals, keep networking, and don't hesitate to reach out if you need any other advice or assistance with financing.

Looking forward to connecting further!

Jackson

Hey Nick!

Welcome to the BiggerPockets community! It’s great to see you here, especially since you’ve been following along for a while.

Starting with a house hack is a fantastic idea, especially given your situation. It allows you to live in one part of the property while renting out the other, helping you cover your mortgage and build equity at the same time. Here are a few thoughts to consider:

Financial Benefits: With your decent W2 job, you’ll likely qualify for a mortgage, and the rental income can significantly ease your monthly expenses. This can be a great way to start building wealth without taking on too much risk.

Learning Experience: House hacking will give you hands-on experience in managing a rental property. You’ll learn about tenant relationships, property management, and the overall real estate process, which will be invaluable as you grow your investment portfolio.

Market Research: Since you’re in Long Island, do some research on the local rental market. Look for neighborhoods where house hacking is popular and where you can find properties that fit your budget and investment goals.

Networking: Connect with other investors in your area. They can provide insights on good deals, share their experiences, and maybe even help you find properties that aren’t listed yet.

Consider Financing Options: Look into FHA loans or other first-time homebuyer programs that may allow you to purchase a property with a lower down payment, making it easier to get started.

If you have any specific questions or need funding, feel free to reach out. I’m excited for you as you take this step into real estate investing! Regards,

Jackson

Hi Patrick,

It sounds like you’re in a great spot to jump into property flipping, especially with your background in general contracting. Here are some friendly tips to help you get started in Central New Jersey:

Network with Local Investors: Join real estate meetups or online groups in Central New Jersey. Connecting with other investors can lead to potential deals and partnerships.

Use Real Estate Websites: Check out sites like Zillow, Realtor.com, and Redfin to find properties that are priced lower than usual or have been sitting on the market for a while. Look for homes that need some cosmetic updates—they’re often great for flipping!

Direct Mail Campaigns: Think about sending postcards or letters to homeowners in specific neighborhoods, especially those who might be facing financial challenges or have inherited properties. This can help you find deals that aren’t listed publicly.

Work with Real Estate Agents: Find agents who specialize in investment properties. They often know about listings before they hit the market and can guide you to good neighborhoods for flipping.

Use Your Contracting Skills: Your experience in contracting is a huge asset! Use it to quickly assess properties and estimate renovation costs, which will help you make smart offers.

Join Local Real Estate Groups: Get involved in local investment groups. This is a great way to find deals and share your knowledge with others.

Stay Informed: Keep an eye on market trends in Central New Jersey. Knowing which neighborhoods are growing can help you make better investment choices.

Explore Financing Options: Look into different ways to finance your flips, like hard money loans or private lenders. Having a solid financial plan will make the buying process smoother.

By using your contracting experience and getting involved in the local real estate community, you’ll be set up for success in finding and flipping properties. 

Good luck, and feel free to reach out if you have any questions or need more guidance. I'll be happy to help you with the financing aspect of your investments. 

Regards,

Jackson

Hi Shelton and welcome to the BiggerPockets community!

It’s great to see you and your wife diving into the world of real estate investing. As a private lender with experience in the industry, I’m here to help you navigate your journey, whether it’s assessing potential properties or securing funding for your investments.With your background as long-time listeners of the podcasts, you already have a solid foundation. I can assist you in understanding financing options, analyzing deals, and developing strategies that align with your investment goals.

If you have any questions or would like to discuss your plans further, feel free to reach out. I’d love to connect and support you as you take these exciting steps into real estate!

Regards,

Jackson

Hi Sadie,

I hope this message finds you well! I’m reaching out from a private lending firm based in Kansas City, where we specialize in providing flexible financing solutions across the Midwest and beyond—funding in all 48 states!

Whether you're considering purchasing a lot in cash or looking to finance the acquisition, we have tailored options that can meet your needs. Our goal is to make the process as smooth and beneficial for you as possible.

I’d love to connect and discuss any questions you might have about our lending options or the financing process. I’m looking forward to the opportunity to work together!

Best regards,

Jackson

Hi Mason,

Congrats on your first investment! It sounds like you and your wife are making some exciting moves in your real estate journey.

From the perspective of a private lender, I can tell you that if you don't have experience in new construction you might find it challenging to get funding for a groundup construction loan. However, if your GC friend or their colleague was willing to be part of the loan that shouldn't be a problem.

Here are some thoughts on your questions about building a new property versus buying existing ones:

New construction: 

- Potential for Growth: Building a new property can be a great way to create exactly what you need for house hacking, especially in a market with low supply. If you can design the layout to maximize rental income, it could pay off in the long run.

- Learning Opportunity: Having your friend as a general contractor at a discounted rate is a fantastic opportunity. Not only will you save money, but you’ll also gain valuable knowledge and connections that can benefit you in future projects. This experience could be worth a slightly smaller return on this deal.

- Financing and Refinancing: With new builds, you typically can refinance once the construction is complete and tenants are in place. If the property appreciates significantly, you might be able to access some of that equity sooner rather than later.

- Investment Lock-Up: While there’s a chance your funds could be tied up for a bit, if the property is well-designed and in a desirable area, you might see appreciation that allows for refinancing sooner than you think.

Buying an existing property:

- Less Risk: Existing properties come with a track record, so you can analyze their performance and potential more easily. You can see what renovations might be needed and how they could increase value.

- Immediate Cash Flow: If you find a property that needs work, you can start generating rental income sooner than if you were to build from scratch. This can help you scale your investments more quickly.

Let me know if I can help you with the funding, I'm a private lender based out of Kansas City. Good luck,

Jackson

Hi Tayvion,

Let me share a few tips on how to approach the financing:

Look into portfolio loans or blanket mortgages. These allow you to finance multiple properties under one loan, which can be way more efficient than getting individual loans for each one. Just keep in mind that portfolio lenders will want to see the overall cash flow and occupancy rates across the whole portfolio.

Get ready with a detailed financial analysis. Lenders are gonna want to see profit and loss statements, rent rolls, property condition assessments, the whole nine yards. Show them the portfolio's profitability, occupancy rates, and growth potential.

Consider a bridge loan if you need to close quickly. These short-term loans can provide interim financing until you lock in permanent financing. They're more focused on the property values than your personal finances.

Explore crowdfunding platforms as an alternative to traditional bank financing. Especially if you're a first-time portfolio buyer, these online platforms can help you raise capital from multiple investors.

Work with an experienced commercial real estate broker. They can guide you through the process and hook you up with reliable lenders who've done this before.

The key is having a solid grasp of the portfolio's financials, a clear plan for the properties, and a team of pros to help you navigate the financing side. With the right approach, you can definitely secure the funding to scoop up this portfolio and grow your real estate investing biz. 

Let me know if you have any other questions and if you need to talk about funding options with a private lender! Happy to share more insights.

Jackson

Hi Cliff,

Here are some things to consider:

Liability Protection: One of the biggest perks of having an LLC is that it helps protect your personal assets. If something goes wrong with the property—like debts or legal issues—your personal stuff is generally safe. This is super important for real estate investors.

Tax Flexibility: An LLC can offer some nice tax benefits. Depending on your situation, you might get to choose how you want to be taxed—like as a sole proprietorship, partnership, or corporation. This can help you manage your tax bills better.

Professional Image: Running your investments through an LLC can make you look more professional to lenders, partners, and tenants. It shows you're serious about your real estate game.

Easier Management: If you plan on owning multiple properties down the line, having an LLC can make managing everything a lot simpler. You can keep all your properties under one roof, so to speak.

Cost Considerations: Keep in mind that setting up an LLC comes with some costs, like filing fees and compliance stuff. Make sure these expenses fit into your investment plans and budget.

In short, while you don't have to set up an LLC before buying your first property, it can definitely offer some solid benefits like liability protection, tax flexibility, and a more professional image. If you're thinking about growing your real estate investments, starting an LLC early on could be a smart move.

Let me know if you'd like to talk about financing options for your first property! Good luck,

Jackson

Hi Willis,

Something that I didn't mention before and that could be unexpected is adding a separate entrance or converting a basement/garage into an ADU can appeal to landlords looking to rent to multiple tenants. This can provide a surprising boost to ROI.

Would love to connect, please let me know if you need advise on the funding of your investments,

Jackson

Hi Jessica,

Rent-to-own can be an interesting strategy for many investors and potential homeowners. While I don’t have personal experience with it, I’ve learned quite a bit from clients who have gone through the process. 

In a rent-to-own arrangement, you typically enter a lease agreement that includes an option to purchase the property later. You usually pay an upfront option fee (around 1% to 5% of the purchase price), and a portion of your monthly rent may go toward the purchase price, helping you build equity over time.

Pros:

• Flexibility: It’s a great way for buyers who might not qualify for a mortgage yet to secure a home while improving their credit or saving for a down payment.
• Locking in Price: You can agree on a purchase price upfront, which can be beneficial in a rising market.
• Building Equity: Part of your rent can contribute to the eventual purchase, helping you accumulate equity.

Cons:

• Risk of Losing Money: If you decide not to buy at the end of the lease, you might lose the option fee and any rent premiums.
• Market Fluctuations: If the market value drops, you could end up paying more than the home is worth.
• Complex Contracts: It’s crucial to have clear agreements in place to avoid misunderstandings.

Watch out for vague contracts, high option fees that seem unjustified, and properties that aren’t well-maintained during the rental period. Overall, rent-to-own can be a viable path to homeownership, but it’s essential to do your homework. If you have any specific questions or experiences to share, I’d love to hear them!