All Forum Posts by: Jacob Emmert

Hey Jackson,

I was in a similar position to you about 6 months ago. I don't know what your resources look like, but I can tell you what I did... I built up enough funds from my job for a down payment. This was around 30-40k for a 2-3% down payment. I used an FHA Loan to finance a duplex in the St. Louis Park Area. The duplex was not perfect, but I painted, carpeted(home depot), and repaired multiple areas of the side I planned to move into. It's a 3 bed 1 bath on each side and the other side is mostly up to date with tenants that were already under lease. I made sure to get an inspection. I was most afraid of buying a property with major structural or foundational issues that would sink me financially.

This property was actually an off market property to begin with that would not pass city inspection when we first saw it (at least on the side I am living in). Now I am confident that it would be close to passing inspection. Most of the issues with this property were cosmetic, and I am still working to make things look more presentable for when I move out. 

The property does not cash flow at the moment, so I will likely have to pocket maintenance and repairs. mortgage is about $3000 a month. However, with inflation moving like it has been, In 5-10 years I'm sure this will be a good long term investment and cash flowing property as long as it is properly maintained.

I think if I do another investment, I might try something out of state. I want to try to buy a house that was flipped and failed to sell with cash of my own. I will then rent it out, get a cash out refinance, and repeat to accrue cash flowing properties that require minimal work. That's a whole other topic of conversation. 

Needless to say, I hope you find something that you are looking for and have as much success as you can with your first property.

cheers,

Jacob

Hi Zachary,

nice to hear that you are looking into real estate investing as well! I have another BP friend that I talked to about getting lunch over the weekend to talk more about real estate and network. If you would be interested let me know. My number is on my profile (it won't let me post it here)

Best,

Jacob

I've heard of people flipping houses using private money, usually for a time frame for less than one year. I have not heard about using private lending for an extended period of time.

I'm a recent college grad with about 20k in debt right now and looking to analyze properties in search of a good deal for the future when I do pay my students loans off. However, it seems there is a barrier for many of the good potential properties because of my lack of liquidity. The properties that look good are only offered for cash and not conventional financing.

My bright idea would be to either find someone with enough money to fund a private loan or have someone that I know take out a home equity line of credit to purchase a rental property and then keep the property for the cash flow. From what I have read online, it sounds unlikely that anyone would want to lend money out for a period of 30 years and wait for the rent to pay back the mortgage. Has anyone heard or done a buy and hold property through private lender and paid the debt off using the rent from the property, similar to a mortgage.

Is this a very uncommon circumstance?

Am I Over-Leveraging by doing a deal when I am not using a down payment or a commercial lender?

Do private lenders care if their investment pays out over a period of time?

Would paying the interest up front to someone with a home equity loan benefit the both of us? (In the sense that the private lender gets their profit up front and I slowly pay down the home equity line of credit on the rent.)

Would it be less of a hassle to just save for a down payment and try to get pre-approval for a commercial loan? (This isn't really an option for purchasing a property with cash since it is conventional financing)

I'm trying to think outside the box here, but not sure if I could make this happen. What do you think?

 I will definitely check it out. Thanks for the help!

Hello @Einat Menashe ,

I am also a new Real Estate Investor in the Madison / Huntsville area looking to make some connections and help each other out as far as deals, tricks, tips for different areas, etc. Feel free to contact me if you are looking for an additional person to analyze properties and make sure that you aren't making a mistake or investing in something that wouldn't be of benefit.

Best,

Jacob Emmert

Within the last 5 months I moved to the Madison/Huntsville, AL area and started my first job out of college as an engineer. I do not have the funds right not to purchase a rental property; However, I am going to start analyzing properties in the area to understand the various areas and successful types of properties in the Madison/Huntsville area. If anyone knows of a good realtor or real estate broker that understands real estate investing please let me know.

For the next year I am diving into rental property analysis and trying to find properties I would invest in provided I have the ability to get funding. I was actually thinking of starting bi-weekly meetings at either my apartment or a social setting for new and old investors to come together and network without having to pay for an organization.

If anyone would like to connect/meetup and talk about future plans and goals, feel free to contact me!

Best,

Jacob