All Forum Posts by: Joe Aiola

@Jonathon Nila If you're going with conventional financing, then I would agree with @Twana Rasoul and get pre-approved first. If you're looking for distressed properties to flip, then it doesn't matter as much because if you find a good deal, it should be a lot easier to find the money. With that said though, it will give you some piece of mind if you knew where you were getting the money from ahead of time.

Just keep in mind that a pre-approval does not mean that lender has to give you the funds. I would recommend talking to a few lenders to have somewhat of a relationship ahead of time.

Best of luck.

@Joe Livsey Congrats on the accepted offer! From what you've described, there shouldn't be any problem with the loan because the unit is clearly habitable if the tenants have been there for 8 years.

Not sure if there are agents involved or if you're communicating directly with the seller, but it won't hurt to see if the seller can suggest to the tenants to make sure the unit is presentable for the appraisal. 

Good luck - hope it all works out!

@Lee Ripma and @Kenneth Garrett hit the nail on the head. Just make sure you're using that as part of analyzing process, and not relying solely on it. You don't want to make decisions just on rules of  thumb because a lot of other things play a role (location, age or condition of property, etc.).

And don't forget to budget for cap-ex and repairs! These can wipe out cash flow very quickly.

Best of luck @Matthew Odou

@Jonathon Nila Lenders are like any other profession - you will have some that are great at their job, some that are okay, and some that aren't that great. I would suggest talking to multiple lenders and see if they all tell you the same thing. This will let you know where you stand.

The best questions you can ask a lender are questions that help you figure out what you need to be approved for the property you're looking for. It's all numbers based. So if the lender told you that you can't purchase a multi-family, then you should immediately ask, "What's holding me back from being qualified for a mulit-family?" or "What would you need to see to qualify me for a loan on a multi-family?"

These questions will let you know what you need to work on. Maybe it's a higher credit score or a lower DTI ratio.

Hope this helps - best of luck!

Hey @Maggie Thompson! As I was reading your post I was thinking of my response, but then I saw @Sean Rosenbaum's post and he hit the nail on the head. I was going to say/ask the same stuff!

Looking forward to reading the answers to Sean's questions. 

@River Fuller Great post! Glad to hear the first one went well - seems like it was an awesome learning experience for you. Looking forward to seeing you post another like this one soon!

Best of luck!

@Manaury Marte I never personally tried this, but I heard a good tip the other day that seems like a smart idea - try going to the apartment buildings near you and speaking to the maintenance crew. There's a good chance they'll be happy to do some work on the side for a very reasonable price. Like anything else, you will have to screen them to make sure they are a good fit. I also wouldn't recommend having them do a job that's difficult or requires a professional.

Best of luck!

@Keelan Bell Very impressed that you got started so early - you're ahead of most of us! Keep up the great work and keep taking strides forward. Do you know any wholesalers in your area? If so, find a way to add value to them (this goes for any person you would like as a mentor). Offer to go driving for dollars for the wholesaler for free to learn that side of the business. It will give you good experience as well.

That's just one way, but you could think of a bunch more. Best of luck!

@Kenneth Garrett Great post and great tip! It's easy to want to take the best or first offer when you're flipping, but you absolutely have to screen the buyer like a tenant. 

Glad to hear you're still making real estate work in tough times. Keep up the good work!

@Davere Currie I looked there for a short time but decided to go in a different direction. I would get in touch with @Sarah Hooff. She's an agent who knows the market really well and invests in Newburgh herself. 

Best of luck!