All Forum Posts by: Jeff Arndt

Hello BP.  I'm looking for wholesalers in Pittsburgh with small mutli-family properties under $150k.  I would like to be on your buyers list.

Thanks!

Jeff

Can anyone recommend a good water sub-metering company for multi-family properties in Pittsburgh?  Thanks!

Hard money lenders typically have clauses in their contracts that prevent borrowers from putting tenants in their properties.  This is because there are tricky laws for mortgage financing - driven by the Dodd-Frank act.  In most instances hard money lenders are making a "business loan"; not a mortgage.  There is a lot of red tape that I don't understand so please consult your attorney.

However, some private investors will be willing to make a private unsecured loan to you.  Which in theory you can do whatever you want with - but the investor won't have their asset secured by real estate.  These type of investors are hard to find and won't do this unless you have 10+ deals under your belt.

The best strategy around is to do a BRRR (buy renovate refi rent). This will allow you to have a hard money loan for the rehab phase of the project, refi the improved asset with a standard bank, and then rent out the property. The only downside is you can only rent the property until the refinance has been complete. It could be done before the refi is complete, but I'm not a fan of mortgage fraud when I can avoid it :-).

As for you last question, how can I find these types of lenders.  Networking and word of mouth are you best bets.  You'll often find that the top hard money lenders are at all of your local real estate meetups anyway, so reach out with them and a good one will help you through the process.

If I were you, I would just have her pay groceries and utilities, or something to that effect.  This way she's helping with living expenses, but you're not cutting checks to each other.  Cutting checks to each other can become cumbersome and a bit of a pain.

My goals:

I truly believe goals are not restrictive in any way shape or form.  The old adage is, "the best way to be in business, is to be in business".  So if your goal is to purchase 100 units cash flowing $200 per month, you will be in "the game".  In order to acquire 100 units takes immeasurable time, energy and knowledge of a marketplace.  And through countless hours analyzing deals, and driving neighborhoods, it may open your eyes to other opportunities.  It is at this point you can pivot and take on different work.  A lot of people, myself included, need to write goals down to work towards something.  If you are someone who doesn't need to write your goals down, it is still very possible to achieve, but I would not say either case is restrictive.

The quantitative goal of owning 100 units may not be what is actually important about the goal setting process.  What is truly important, is the behaviors that you develop by setting and working towards those goals.  

Hello all!  I feel like I'm making a mountain out of a mole hill on this one and could use some guidance.  In either case, it makes a pretty nifty high school math problem.

I have a mortgage on a property with a PMI payment of $55.40/mo. I have the option to order an appraisal for $480 to hopefully get it removed. The question is should I order the appraisal?

Using an amortization schedule that I created, I calculated that in 27 months the PMI payment will automatically go away. I also calculated that if PMI is removed, it will take me 8 payments to recapture my $480. From this point forward will I begin to profit - but only up until payment 27 - of when it would have automatically gone away without action. If I order the appraisal now, I'll be set to make an extra $890 2 years and 3 months from now.

What would you do?  Would you spend $480 dollars today, get your money back in 8 months, and then earn $890 a little over 2 years from now?

(Note:  I have neglected the time value of money for my analysis so far)

Education is a way of life and Bigger Pockets is my primary resource for real estate education.  I read just about every newsletter article and try to be active in the forums (this is much harder for me).  

In other words, welcome to the community and make BP a part of your life!

If my 2c are worth anything....

You have chosen two very different paths but as you stated it in the beginning - your goal is to travel and see 30 countries by 30.  That's six countries a year.  I think your best bet would be to house hack your way to 4 properties and then take a "mini" retirement which would allow you to take 6 months off and possibly knock 10-12 countries off your list on one big trip.  When you get back resume working and continue to acquire property.  Then take a mini retirement again.  Rinse and repeat.

An MBA will not help you achieve your stated goal. Period.

However, if you have dreams of accruing wealth.  An MBA will give you the earnings potential to really invest and let compound interest work for you.  But that is a 30 year play IMO.

I am going to grad school currently for a masters in engineering and it is significantly hampering my ability to review deals and focus on real estate.  Energy is finite and at the end of the day, there is little left for real estate.  Before I started my degree I was taking courses to become an agent.  I think being an agent part time will get you to your goals faster than an advanced degree would.

If you are true to yourself and if your goals are sincere - save money like a crazy person and work even crazier.  Work so hard that everyone thinks your are nuts.  Anyone can work really hard when there is an end in mind.  Invest that cash in property to hit your passive income goal, save money by being your own agent.  

If you house hack and have "free" rent, you should be able to travel on a lot less than $3k per month.

When you get back from traveling, you could always get an MBA then...

@Account Closed I got the sink at IKEA.  I was poking around the site to find a link for you but it may be discontinued :-(