All Forum Posts by: Jasmine Williams

For sure. But, it still requires 20% down, which seems to fall within his current issue.
I was referring to the private money or hard money being expensive.

Let's connect!

Hey @Scott McGadden. This is a common issue with investing in existing & older homes. I talk to my investors about this pretty often, especially if they're first time investors. It's something people rarely think about, talk about, or admit. Typically, you'll want to get out before you hit major repairs or uncomfortable cash flow. But, since you're already there, you may definitely want to look at a move. My suggestion would be to look at turn-key rental property options in a developing area with low entry costs. Small multifamily, up to 4 units (at least to start), then graduate into larger investments as your portfolio performs positively. B2R is typically especially good for this. Capitalize on consistent cash flow & appreciation, potentially tap into equity at year 5-7, get out & re-invest between year 10 & 13. Definitely 1031, as long as you are eligible. We are in markets now that are doing just that. Feel free to connect with me. I'm an open book and I'm happy to share, or even just answer general questions.

Also if you do end up selling the properties, please shoot them my way. I have investors & buyers in the area. I'd love to see what you've got.

Hope this helps! Happy investing.

Quote from Tanner Lewis:

It sounds like you would be looking for a DSCR loan. The income qualification for the property is off of the property's cash flow. You would need to put 20% down for something like this.

The short answer is, yes...but, it is more difficult & takes more time. If you have a deal and you're willing to contribute some time & sweat equity, you can consider joint partnerships &/or equity partnerships. Just be careful who you partner with...be sure they are reliable, honest, experienced, and trustworthy. There's also hard money & private lenders, but they can be expensive. (It may not matter if it's truly good deal. Or, it could eat up all of your profit, which is most common.) Outside of that, maybe searching hi & low for seller financed or lease option deals. They're pretty hard to find in this market.

I'm happy to collaborate to see if there's anything I can help with! I have pretty diverse investor clientele. Feel free to connect with me any time!

Quote from @Eric Sato:

Hi Jasmine. I have been looking at some of those options. I was going to avoid that because I am 42 with a wife and 2 elementary school kids, and although I have the motivation and free-spirit to do that, my wife is quite conservative and wants that nice dream house =) Which I definitely want to provide. Haha. 

I was looking for potential Fourplex / Duplexes that are in good condition and living there for a year perhaps however. 

 I totally get it, Eric! Don't worry about your age, man. It's never too late to start your home ownership or investment journey. I know that you, like the rest of us, really want to have that American Dream for our families. The reality is there's literally no better way to do that than with real estate investment. Think about it, you could spend the next year or 2 living with your parents (which I think was absolutely a smart move, btw) and just saving money...not achieving either of your goals of owning or buying a home for your wife & family...AND, not to mention that if you do purchase your primary residence first you're going to increase your DTR & likely significantly reduce your cash on hand, which is likely going to set you back a few years on your real estate investment journey. Even if you purchased the investment property first, at least you would have the cash flow & equity of your investment property (wouldn't recommend purchasing at market value in this market) to improve your financial profile and increase your chances of being qualified for a primary residence loan, instead of the other way around. Going multifamily is a way to achieve both goals. And you don't have to sacrifice your comfort just to invest! Your wife wouldn't have to worry about living in a shack or rehab in the meantime. Lol You can go the B2R route & purchase New Construction. That's our specialty.

I'm happy to answer any specific questions you have! I literally map out these scenarios with investors every day. Send me a Connection request! Let's stay in touch...

Hi @Adam Pervez! You honestly have great cash flow with your current investment. The answer to your question, in my personal opinion, is to do exactly what you're looking to do in the future, right now...invest in small multi-family (up to 4 units) that you can purchase below market value in developing areas in order to capitalize on the appreciating value...but to do it with properties that also have lower entry costs, strong rental demand, positive cash flow, and with lower property taxes. Not only will you continue to build your portfolio, but it can offer the tax benefits to offset your high income. 

Out of state investing can be very beneficial for someone in your shoes. But, I'd recommend going the B2R route where management is already in place for a turn-key process without the headache of dealing with tenants and property issues for, at least, the next 10 years. We're in several Florida markets for this exact reason.

I am working with a 20-year, veteran, cash investor right now that is navigating this exact problem. His profitability with the current properties has capped & he wants to get out before things hit the downturn. This is the same conversation I had with him. Happy to answer any questions.

Feel free to connect with! (Same for you @Joseph Chacko vellukunnel.) Good luck!

Quote from Theresa Harris:

Do not flip a home unless you have experience.  It is vey risky and chances are you will lose money if you don't know what you are doing.  You say your job doesn't pay much, but what does that mean in terms of $ and being able to get a mortgage?

Do you own your own home at the moment?  Why not look at a duplex or place with a legal suite and you can live in one unit and rent the rest of the house?  You could also rent rooms in the house (if you don't mind having roommates).  Run the numbers to see how they compare to you renting.

You make money when you buy a rental-getting a good deal and buying the right property.  You also make money in the long run not through cash flow, but by the tenant paying down your mortgage for you and covering your expenses (property taxes, insurance, etc).

@Christian Licata I wholeheartedly agree with Theresa. I have been working in the real estate industry since 2010, specializing in working with investors and 1st time home buyers for the last number of years. I cannot tell you the amount of unexperienced investors that have had their lives turned upside down on a bad/hard 1st deal or 1st few deals. I'm talking, legal action bad. Do you currently own a home? If not, have you considered using a 1st Time Home Buyer Down Payment Assistance Loan or Grant to purchase a small multifamily property that you can also live in? This is something I talk to many of my first time homebuyers and first time investors about. It would achieve goals of both purchasing a primary residence & investing, and significantly reduce the amount of money you need to contribute towards your first investment. You could hold on to that capital for your next investment! This where I personally would want to start.

Feel free to connect with me. Good luck!

Hi Eric! Have you considered using a 1st Time Home Buyer Down Payment Assistance Loan or Grant to purchase a small multifamily property that you can also live in? This is something I talk to many of my first time homebuyers and first time investors about. It would achieve your goal of purchasing a primary residence & investing, and significantly reduce the amount of money you need to save (and therefore reduce or eliminate your wait time). This where I personally would start.

Feel free to connect with me. Good luck!

@Joan Liu I just received a call from someone needing to sell their portfolio in order to make another investment. They also need to sell fast. I think this is probably a good opportunity. Those aren't on the inventory sheet though.

Hey @Eugenio G.! Great question. The short answer is there shouldn't really be too much of a difference. Typically, the lender would use your income, credit, etc. and the trust's assets to qualify, you could secure the note, and the trust/trustees would gain title at closing. All other factors (applicable documentation, terms/interest rates, title, requirements) seem to usually be about the same. Of course, consult with your tax advisor. I have a lender partner that would definitely probably be able to answer more specific questions. Happy to share them with you! Let's connect.

@Rick Richard before you sign that offer...are you working with a Realtor? If so, they can definitely show you where your inspection contingency clause is in your contract. A real estate attorney is the only one who can directly answer questions regarding your interpretation of/questions about the clause. Typically, though, the terms are spelled out pretty well...at least I know they are here in our Florida contract. If you do end up needing to ask a real estate attorney questions, it's probably a good idea to start with your title company. If the title company is managing your closing or has worked with you before, they are likely well-versed in the terms of your local contract and often provide answers to simple questions at no cost, as they anticipate future business from you. Hope this helps! Feel free to connect with me if you have any other questions.