All Forum Posts by: Jessica Von Zastrow

@Robert Gibbs - sound like you are a go-getter! Having a supportive team to help you find a good property is key. Take a look under the Network tab and start connecting with agents, lenders, and successful investors in markets you are interested in. Having a boots-on-the-ground team that will honestly advise you can make a big difference.

@Kayla C. 

If you don't have a history of Rental Income from the subject Property the lender can use the lesser of:

• the monthly operating income reported on Fannie Mae Form216/Freddie Mac Form 998; or
• 75 percent of the lesser of:
  • fair market rent reported by the Appraiser; or
  • the rent reflected in the lease or other rental agreement.

If you have a specific property in mind, let me know and we can talk about what would be needed for your unique scenario! 

Hi Kayla - lender here! 

You are able to include future rental income for an FHA loan, but the guidelines arounds this can get a bit tricky. Here's a few things to keep in mind:

• FHA loans must be occupied as a primary residence. If you are planning to live in one unit of a multi-unit property, an FHA loan can be a great way to finance with a low down payment.
• FHA guidelines require the lender to complete HUD form 92561 to determine "Self Sufficiency Rental Income Eligibility." This refers to the rental income produced by the property above the Principal, Interest, Taxes, and Insurance (PITI).
• If you are buying a 3-4 unit property, you will need to have additional funds to meet the reserve requirement, which is typically 3 months of PITI. This requirement is in place to ensure that you have enough funds to cover any unexpected expenses or vacancies.

I'd definitely recommend having an initial conversation with a real estate agent in your area to get and idea of what your property is currently worth. Since you own the property free & clear, you can access the equity in the home through a HELOC (home equity line of credit) or a cash-out refinance. With the market projected to slow down a bit in 2023 - you could explore holding this property rather than flipping. Check out other info on the Bigger Pockets forums about the BRRR method!

Hi @Brad Cook just wanted to share my experience as a loan advisor to give you some info as you make your career change decision. As several posts in this thread have already said, the first step will be getting your NMLS education and licensing. This can be a pretty daunting task (when I say there are a lot of guidelines to learn, I mean a LOT) but plenty of YouTube videos offer lessons and advice that can help make the studying a bit easier.  

When it comes to applying for positions and looking for employers, definitely do your research! I looked at Glassdoor company reviews to understand company culture and find an place to work that was a good fit. As @Zach Wain mentioned above, this industry is not stable. Your booms & busts will be closely tied to macroeconomic trends that are beyond your control. Having the ability to stay optimistic and focus on your impact is important! 

I don't imagine many kids grow up with dreams to become a Loan Officer, but it can be a really rewarding career! As someone who is excited to jump into REI, a job in the industry could be a great step to learning more about building your own future portfolio. If you have other questions, let me know!

Hi @Elite A. - 

I think it's great that you are investing in yourself at such a young age. Investing early can really pay dividends as your portfolio and equity grows, so it's great that you are taking the right steps to start building your real estate investment career.

I also love that you are taking the time to learn as much as you can about creative financing and investing in the real estate market. There is always more to learn in this industry, and it's important to constantly be expanding your knowledge and skills. It's great that you are also interested in networking and building business relationships - these are keys to success in real estate.

I am also a big believer in supporting young women as they break into real estate investing and build wealth through home ownership. If you'd like to chat more about your goals and how I might be able to help, I'd be happy to schedule a call.

It sounds like you're already on the right path balancing a stable salaried position with your role as a real estate agent to help build experience. As you start building your investment portfolio, there's a few things I'd keep in mind: 

• Income: For conventional loans, it is important to have stable salaried employment and to avoid employment gaps. If you go fully commission-based, you'll need to build a history before getting a loan. 
• Gaining experience: Networking and joining professional groups can be great ways to gain experience and learn from others in the industry. Consider joining a real estate agent association, attending Bigger Pockets local meetups around Dallas, or keep doing what you're doing here by participating in online forums and groups to connect with others and learn from their experiences.
• Building your resume: It sounds like you already are working as a real estate agent in addition to your "9-5." Focus on closing deals and gaining experience. There's a lot to learn through helping others through their home purchase journey as well as building a network of contacts and resources that can help you succeed in the industry.

Hi Clement! I'm a lender in Ohio and would love to connect to talk about financing strategies! Just sent you a request.

Hi Amir! 

As a Loan Advisor, there are a few options that you may want to consider when it comes to financing a deal with a cash offer:

• A cash-out refinance: This involves taking out a loan on the property you own free & clear in order to access the equity in your property. You can then use this cash to buy an investment property or  make a down payment on your next purchase.
• A home equity line of credit (HELOC): A HELOC is a line of credit that you can borrow against as needed. The draw period of a HELOC is the time during which you can borrow against the line of credit and make interest-only payments. The repayment period is the time during which you must begin repaying the principal balance of the loan in addition to the interest. This is a good option if you want to draw from the equity in your home multiple times.
  
• The BRRR method: As mentioned above, the BRRR method is a great way to make your money work for you! It involves purchasing a property, making improvements to increase its value, renting it out, and then refinancing to pull out the equity. Depending on your investment strategy, this could be a good place to start since you already have equity in your current property!

If you have any additional questions or would like to discuss your specific strategy in more detail, I'd be happy to help.

Hi Tanner - there's a lot of great info in this thread already! Here's my perspective as a lender:

You are in the right place to start researching. There are several strategies and actions you can take to help get prepared and build equity (getting started now will allow you to build equity for your future).

One strategy that can be especially helpful for first-time investors is house hacking. This involves purchasing a multi-unit property and living in one unit while renting out the others. This is a great way to generate income and offset the cost of your mortgage, while also gaining experience as a landlord. If you are interested in learning more about house hacking, check out the resources available on the Bigger Pockets forums! 

Another thing to keep in mind is that if you have an offer letter for a new job and you will be starting the position within 60 days of closing on a property, you may be able to use this offer letter as income when applying for a mortgage. Since you're still in college, you can also use your education as employment history when applying for a mortgage.

Overall, it's important to be proactive and do your research when it comes to preparing for a rental property investment. By understanding your options and being well-informed, you can set yourself up for success when the time is right!