All Forum Posts by: John Ching

Looking back over my RE career (which isn't that long ago!) I'd say get start with some education and knowledge. You've stated your long-term goal, but how do you get there is the question?

Gurus can teach you how to find off-market deals that you can control through various types of seller-financing. Others will tell you to apply some of that money towards marketing for wholesales. You could also become a private lender for members of your REIA while you learn the ropes and figure out a strategy want to follow.

In short, there are too many ways to skin this cat. You need to know as many as possible to figure out which ones you feel comfortable with pursuing. Good luck and let us know more!

Hi Pat. I'm an investor here in Springfield, MO and I also have a background in mortgage banking. 

Personally, I'm a big fan of HELOC or interest-only programs for my investment properties. My reasoning is that I like having a lower required monthly payment in order to maximize my monthly cash-flow.

Remember, you can always reduce your principal balance at any time with a HELOC (or an loan for that matter) simply by making a, "principal reduction" payment. The difference is, with a regular amortization loan, your payment remains constant throughout the life of the loan.

Make sure that Bank Midwest HELOC rate is fixed. Most HELOC's interest-rate is tied to prime and will fluctuate when the Fed raises rates. 

Andrew P brings up a good point. Try your local community banks for commercial portfolio products. 

Loan approval for 70% LTV of an investment property is pretty good. There are many factors which come into play such as NOI, property type, credit score, etc.

A regional or local community bank is your best bet for finding a lender who will look past your DTI. Be sure to let us know your results.

 Justin, if Zack cannot help you out, I know several here in Springfield, MO that can help you. 

Kendall,

Nothing wrong with a commission-based job. You just have to be able to provide documentation for the commission. 

A lender will average your salary/commission for the past 2-years. You might have to provide a Letter Of Explanation (LOE) from your employer stating that your commission is normal and will continue for the next 12+months.

You can get conventional financing on a duplex with as little as 5%-down - But with less than 20%-down, expect to have mortgage insurance (PMI).

I have never used a job-offer letter in the 15-years I have been doing mortgage lending. That being said, your money (no pun intended) may vary. However, the job would have to be within the same line of work or industry as your current job.

Lenders will use leases as a source of income but generally only if there is a preceding rental history (and usually 24-months at that). Without prior rental history, you probably won't be able to use rental income to qualify.

I've got a great lender here in MO that I can refer you to, should you want to get pre-qualified (which you should).

Chris, it shouldn't be too hard to find a hard money lender that operates in MO, no? It sounds like you'd rather deal with someone locally, or at least in MO? I've got a couple portfolio contacts here in Springfield, but I'm not sure that would help you in Farmington.

I think Stephanie P has a good suggestion of looking for a local lender with a portfolio product. Also, ask them if a commercial loan or line of credit would be easier to obtain. Here in Springfield, many investors use commercial lines or loans as the lenders can get those deals done very quickly and with very little paperwork.

Some great advice here, Quinton. But Ingrid hit the nail on the head best - Get some education first. 

Realistically speaking, let's say you got your first, "deal". How do you even know it's a deal? Can you show an investor or partner why it's a deal? 

You want to flip homes? Great! How do you do it? Where do you start? What are your numbers? Do you have contractors? How would you hire them? 

Do you see what I mean? Read, research, watch and learn. This will help direct your path in which direction to take in the avenues you pursue. Whether it be wholesaling, flipping or BRRRR'ing, a little education will go a long way! 

Good luck to you.

Lucas, Some great advice here on BP. By the way, there are plenty of flippers here in Springfield making that much and more on flips. As Ali pointed out, Missouri RE doesn't exactly force you into other markets due to the price of entry. I applaud your enthusiasm to double-down on your capital, but walk before you run.

Jay Hinrichs is spot-on when he says everything IS NOT perfect in flipping houses!

Try making the REIA meeting tonight at 5:00pm at the Hilton Garden Inn, you'll meet plenty of investors killing it here in Springfield.

Quang, feel free to reach out with questions or scenarios of potential deals here on BP. That's one of the things this community is for - to help others like yourself.

You are right, the best thing you can do as a bird dog or wholesaler is knowing your numbers. Start with getting to know ARV's (After Repair Value) in neighborhoods you search. Also learn how to find owners of properties (start at your county tax/assessor's office) that appear vacant or need work (look for tarps on roofs, overgrown grass/weeds, boarded up windows, etc.).

Good luck!

I take it the tenant has not responded to your written 45-day request to vacate at the end of their lease?

If you have not received any notice from the current tenants, give them the cursory 24-hour notice to enter the premises to, "make some updates/touch-ups/change air filters" to the property. Use this opportunity as a way to inspect the property/chat with the tenants about their plans. Remind them their lease is expiring and has not been renewed.

If you suspect a hostile environment, "cash-for-keys" usually has good results. 

Post more details for further advice.