All Forum Posts by: Joe Conklin

Thanks for all the advice.  Most lenders wont give me a chance because I don' have 2+ years of landlord experience.  This is the caveat I'm told when asking about factoring in the 75% of rent.

However, I called my relator and asked for lenders who fund their own deals.  I talked with one company and it looks promising so far.

are you factoring in maintenance and vacancy expenses?

I just went to meet with a small local bank and they couldn't help me.  

I bought my first rental two months ago and have it rented.  However, the lender adheres to Fannie Mae guidelines and can't justify the income of the rental property until after two years of history has passed.  I imagine that this is a common problem, however it's one I don't know the answer to.  I view my options as the following.

1. Use a cosigner - Interested in people's thoughts on this.  I do have a family member that would be willing to cosign.  However, I do not want to drag them into this if I don't have to.

2. Find a lender that does not adhere to Fannie Mae guidelines.  I would most likely have to pay higher interest rates.  How do I find these types of lenders?  

3. Private Money - Don't have any prospects on this.

4. Hard Money - Rather not, last resort option.

Any better options out there? What are some thoughts on the ones I listed?

Everyone has different criteria.

I want over 10% cash on cash return on my rentals.  So in my area I am looking for around $200 per month in cash flow per home.

I personally think that cash on cash return percentage is more important that cash flow in terms of dollars per month.  However, cash flow and cash on cash return are just starting points when analyzing a deal.

Feel free to post an example of a home that you are looking at.

Just listened to Grant Cardone's podcast and was very impressed.  One thing he mentioned is that he puts all of the money he makes from his other business's in to RE.  It doesn't seem like he left himself much in reserves in the beginning.

Just purchased my first rental property two months ago and things are going great and I'm looking for my second.  I want to be very aggressive in my acquisitions, just not stupid aggressive.

My financials that I don't plan on touching: Employer 401K match, 3x rent reserves for my rental property, 6 months reserves for all living expenses.

I am willing to invest all other money into RE.  I am not opposed to risk because I don't support anyone other than myself and I make a decent salary.

Does this seem like a good plan?  I'm interested to hear what others have to say about this topic.

 Thank you.  How did you get into investing out of state? Turnkeys?  It is interesting to me but I wouldn't know where to start.  However, I like it because I can get in more properties for a lower cost at a higher return.

 It took over a year to find a property and purchase it.  I also went through phases of doubt.  Than one day I just said to myself that I will do whatever it takes to succeed.  When I made that mental commitment to myself things went a lot faster.

Specifically, this property I found on redfin.com and saved it as a "favorite" because I liked it, but it was priced high.  It was on the market for $132,900 than $129,900 than it dropped to $119,900.  I received an email notification that the property value dropped and I took a look at it.  Negotiated the deal and after a few headaches with the mortgage company I am where I am now.

My advice would be to not allow yourself to lose steam.  Just because you had less than satisfactory results thus far does not mean that you will have less than satisfactory results today and tomorrow.  Once you become laser focused on your goal you will overcome any adversity that the world can offer.

@Kyle Handy  thank you

@Ndy Onyido  @Account Closed far from all figured out, but thanks!

@Jon Huber  yes its not the easiest market in the world, however I plan to make the best of it