All Forum Posts by: Jeff Hines

DSCR loans can get you approved for a rental loan or a flip loan (alternatively make it a BRRR if it works) based on liquidity and credit score; less so important if you have a job or the work history.

You can also consider being a private lender if you're trying to wait until you can get the necessary work history for other forms of financing.

You can definitely buy good homes that need a rehab for cash with $150,000 in NC. Just bought a $60k home that we'll put $50k into and have an almost perfect BRRR.

How much are you looking to make to "supplement working full time" and then work backwards. Also consider tax implications of rentals w/ depreciation vs your FT job with normal W2 taxes.

Where did you purchase the home for $60k?

1 Vote

Charlotte, North Carolina

Quote from @Remington Lyman:

Quote from @Jeff Hines:

Hey everyone,

I am a 28 year old who currently lives in NC. I just want to explain my circumstances and see how people with experience and knowledge in real estate would move forward if they were in my shoes. I have $150k in cash that I received from an inheritance and would like to use it to invest in real estate(I already have 6 months of reserves of my own money saved). I also have a credit score of 756.

My overall goal is to buy enough doors to supplement working full time so one day I can focus full-time on becoming an entrepreneur. I know that will take some time but I would like to get started ASAP! I took a few years out of work to take care and spend time with a family member whp passed, so I have only been working for a year now. This has caused me to have trouble with getting approved for loans/mortgages due to my work gap. I have done some research and have found a few ways I could possibly start investing in real estate. If you would take a different route than the ones I’m going to list below please let me know.

Since I can’t afford to pay cash for a home here in North Carolina, pay cash for a home in places like Detroit, Alabama, or Ohio. I would then renovate, rent, and refinance. Rinse and repeat this process over time.
Instead of paying cash use that money and spread them over multiple dscr loan so I can own more doors and just collect the cash flow after expenses.
Wait another year so I can have two years of work history/W-2s. This would increase my chances of being approved for a FHA loan. This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.

Are there any other no documentation loans other than DSCR loans that I should look into?

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

I did a house hack in Columbus, Ohio. I would do that

I would be down to house hack but I can’t afford a home here in Charlotte quite yet. How did you purchase the home in Columbus?

1 Vote

Charlotte, North Carolina

Quote from @Account Closed:

Quote from @Jeff Hines:

Hey everyone,

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

I always ask the question of a new investor: "Do you want to go the traditional route and pay 20% down for a property that cash flows $100 to $200 a month" which is relatively easy to do and buy 1 house and then wait a couple of years until you have enough for the next property, with rising real estate costs

or "Do you want to learn how to buy multiple houses using Creative Finance that cash flow $300 - $500 a month with no limit on the number of houses you can buy" but requires learning how and taking advantage of the rising real estate values?

The direction I point people depends on their answer.

I would definitely choose option 2, what type of creative financing are you talking about?

0 Votes

Charlotte, North Carolina

Quote from @Marcus R.:

Agree with @Nicholas L., start with a house hack in Charlotte or NC. I'm out in Denver but have family in NC and from what I've seen it seems like a fantastic market.

In addition, if you house hack there are programs like NACA that will help you qualify.

I would be down to house hack but I currently live in Charlotte and wouldn’t be able to afford much real estate here

0 Votes

Charlotte, North Carolina

Quote from @Stephanie P.:

Quote from @Jeff Hines:

Hey everyone,

Since I can’t afford to pay cash for a home here in North Carolina, pay cash for a home in places like Detroit, Alabama, or Ohio. I would then renovate, rent, and refinance. Rinse and repeat this process over time.
Instead of paying cash use that money and spread them over multiple dscr loan so I can own more doors and just collect the cash flow after expenses.
Wait another year so I can have two years of work history/W-2s. This would increase my chances of being approved for a FHA loan. This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.

Are there any other no documentation loans other than DSCR loans that I should look into?

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

Best advice I can give you is take your time and get the foundation of your burgeoning empire set before you get into DSCR loans.

Conventional financing is the least expensive out there. Exhaust all of your conventional or government financing options before you get into DSCR. DSCR will impact your debt to income ratio and it could impact it negatively.

Once you get your W2 situation straight, buy a small multi family and live in it for a year. You can use FHA or conventional financing for that. Do that a couple times until you can't. Once that avenue is exhausted, go the single family route using conventional or government financing. Again, once you can't do that anymore THEN use DSCR.

You're in a great position, but using the wrong type of financing in the beginning could impede the growth of your portfolio.

All the best

Stephanie

I would definitely like to start with a multi-family home but I currently live in Charlotte and can’t afford a Multi family at the moment. I also only make about 40k a year currently which doesn’t give me much buying power.

I know DSCR could affect my DTI, maybe if I put it under a llc and sign as the guarantor could I work around it affect me personally?

0 Votes

Charlotte, North Carolina

Quote from @Nicholas L.:

@Jeff Hines

-do whatever it takes to be able to start with a house hack, then

-house hack, then

-repeat

happy to answer any questions you have about BRRRR but i would not recommend starting with an all cash OOS BRRRR. that is just a really tough first at bat.

I definitely would be into house hacking if I was single, but I think it would be hard to convince my wife to agree to having someone stay in our has.

How do you feel about a getting my first property with a DSCR loan?

0 Votes

Charlotte, North Carolina

Quote from @Caleb Brown:

Do you own a home currently or are you renting? Any previous experience in investing?

I am currently renting, I have never owned a home or invested in real estate before

0 Votes

Hey everyone,

I am a 28 year old who currently lives in Charlotte, NC. I just want to explain my circumstances and see how people with experience and knowledge in real estate would move forward if they were in my shoes. I have $150k in cash that I received from an inheritance and would like to use it to invest in real estate(I already have 6 months of reserves of my own money saved). I also have a credit score of 756.

My overall goal is to buy enough doors to supplement working full time so one day I can focus full-time on becoming an entrepreneur. I know that will take some time but I would like to get started ASAP! I took a few years out of work to take care and spend time with my father who passed, so I have only been working for a year now. This has caused me to have trouble with getting approved for loans/mortgages due to my work gap. I have done some research and have found a few ways I could possibly start investing in real estate. If you would take a different route than the ones I’m going to list below please let me know.

Since I can’t afford to pay cash for a home here in North Carolina, pay cash for a home in places like Detroit, Alabama, or Ohio. I would then renovate, rent, and refinance. Rinse and repeat this process over time.
Instead of paying cash use that money and spread them over multiple dscr loan so I can own more doors and just collect the cash flow after expenses.
Wait another year so I can have two years of work history/W-2s. This would increase my chances of being approved for a FHA loan. This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.

Are there any other no documentation loans other than DSCR loans that I should look into?

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

3 Votes

Hey everyone,

Since I can’t afford to pay cash for a home here in North Carolina, pay cash for a home in places like Detroit, Alabama, or Ohio. I would then renovate, rent, and refinance. Rinse and repeat this process over time.
Instead of paying cash use that money and spread them over multiple dscr loan so I can own more doors and just collect the cash flow after expenses.
Wait another year so I can have two years of work history/W-2s. This would increase my chances of being approved for a FHA loan. This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.

Are there any other no documentation loans other than DSCR loans that I should look into?

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

17 Votes

Charlotte, North Carolina

All Forum Posts by: Jeff Hines

Jeff Hines has started 2 posts and replied 9 times.

Post: How would you start investing if you had $150k???

Post: How would you start investing if you had $150k???

Post: How would you start investing if you had $150k???

Post: How would you start investing if you had $150k???

Post: How would you start investing if you had $150k???

Post: How would you start investing if you had $150k???

Post: How to get started in real estate with 150k cash

Post: How to get started in real estate with 150k cash

Post: How would you start investing if you had $150k???