All Forum Posts by: Account Closed

@Omi C. I tend to agree with @Jim Viens @Brady Hanna  @Jane A.and @Mike D'Arrigo unless you have someone on the ground very experienced in the tougher areas of KC it is usually best to focus elsewhere. South Kansas City could be a good option for reasons already mentioned in the thread.

Good luck!

@Troy Eschweiler you're already on the right path with joining BiggerPockets. A lot of great information here so be sure to check things out.

When I first got started 12 years ago I bought an owner occupied property, lived in it for the year I was required to as part of my loan commitment, and then moved to another house while turning the prior one into a rental. I was fairly nomadic for awhile :)  The only thing I wish I would have done differently then was actually buy a duplex or 4 plex as an owner occupant and lived there. You can usually get owner occupant financing for up to a 4 plex. I didn't know it at the time. 

I think your idea of buying and living in a place for awhile and then turning into a rental is a good one. Be sure you understand your owner occupant agreement based upon your loan documents. 

I would start with checking at the bank I do business with and go from there.

Good luck!

@Thomas Kayes Hi Thomas if the property is almost cash flowing with a conventional loan I wouldn't do anything right this second. While I don't like cash flowing in the wrong direction, negative cash flow, a conventional loan means fixed interest rate so hopefully that is a low one for you. The Kansas City market has been steadily improving in many areas so I suspect you might have some options sooner than later. Have you checked acutal sales comparables lately to see if you are really still underwater? If you want to keep the condo any recent higher sales may give you an opportunity to refinance as well.

Good luck!

@Jody James I have to agree with the others on this thread a HML on this type of project probably isn't the route you want to go. But, to answer your question, most HMLs lend up to a certain LTV (loan to value) of the ARV (after repair value, completed value) of the project. The loan can usually include rehab, closings costs, virtually any costs, etc., however any amount, once you add up all of these costs, above the LTV threshold the lender has set, will mean the borrower brings that much more $ to closing.

A simplified example would be:

ARV = $500,000

LTV threshold 65% of ARV, or a $325,000 loan

Purchase Price $250,000 + Rehab $100,000 + Lender Fee $10,000 + Closing Costs (title, etc) $4,000 = $364,000 - Gross Loan $325,000 = $39,000 estimated cash from borrower to close. Again, this is a simplified example but perhaps will give you a visual of how a HML might calculate numbers. You the borrower can add up everything you want to but it may ultimately raise the $ you need at closing. Hope this helps.

Good luck!

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@David Morrissey a quick internet search will usually give you the results for finding real estate groups in your local area.  For example I did a quick internet search for boston area rei groups and found several immediately. 

And of course you have already found one of the best online groups for investors --- BiggerPockets --- so I suggest you keep utilizing it's content too.

Good luck!

@Mikisha Simms  @David Briley    I would start first by really understanding my state's landlord-tenant laws. Then determine what, if any, local laws or rules exist such as rental licensing, etc.  Many property managers don't know the laws and are asking for trouble out of the gate.

Many property managers aren't licensed (where required), bonded, and insured.  If you are going to manage property I strongly suggest the foregoing.

Personal experience in real estate investing, i.e. having managed your own properties or done your own investing is also ideal. You can bring the reality of landlording to the property owner from your personal experience. Plus you will understand the investor mentality.

I didn't have a degree or take special schooling in anything (related to management or business) other than my master's of reality from the school of real estate investing hard knocks. . . :)   I have done a lot of property management in the past 10 years and have continued to build my business.  

Good luck!

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Build a solid foundation to your investing business...

Step #6 

MAKE A PLAN - Once you choose the type of investing you are going to focus on you need to create a plan to see it through. You should sit down and write out your goals, your objectives, your to-dos and the more specific you can be, the better. I did this in February 2004 when I was a newbie investor. I mapped out the next 25 years in increments of 1 year, 3 years, 5 years, 10 years, 15 years, 20 years, and 25 years from that specific day in time. 

Learn how with the Investor Road Map... Download the rest of the steps to start building a solid foundation to your investing business.... 

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Happy Investing! 

-JJ Pawlowski 

@Fred Stevenson

 I am a local investor and real estate Broker in Kansas City what can I help you with?