All Forum Posts by: Account Closed

Only keep it active if you plan on using it this year for other properties (usually commercial). If not, it doesn't look like it was necessary.

I would highly advise not spreading yourself too thin. The 20k in savings in an awesome start! I would focus all your efforts on getting your savings up and the personal debt down as much as possible. Counting on two other people just to afford your primary residence is too risky. 

Give yourself higher goals. First off, you have a job. Excellent. Even if you work 40-50 hours a week, you can certainly get a part-time job (ex. retail, banking, Uber, anything really). Do you have any rooms you can rent out on AirBnB? Maybe even downsize your current living space/find a cheaper place to live. This is to pay down the student loan as much as possible. With hard work, you could potentially pay off your student loan in one year.

For current monthly expenses, make sure you are putting everything on a credit card so that you can track every expense in one place while earning rewards. Barclaycard's Arrival Plus earn 2X on all expenses.

As far as when to pull the trigger on REI, I would wait until your student loan is under 10k.

You need to set yourself up for success. Too much personal debt and too little income with too many expenses, after an unexpected ER visit or job loss, is an accident waiting to happen. 

What are your thoughts on what has happened with a 12 year old girl being accidentally killed during an eviction notice being served in Pennsylvania? I know that most of us would like to pretend that this would never happen to us, but what are some steps that could be taken to protect yourself in a situation like this (specifically related to real estate and the physical removal of a tenant)?

http://www.cnn.com/2016/01/13/us/pennsylvania-cons...

Thanks for your respectful thoughts while discussing such a sensitive topic.

 Not as far as I'm aware of. They are looking at the property and evaluating the risk involved with selling the property if you stopped making payments. Obviously, you won't do that, but the risk lies with the bank because, until the loan is paid off, the bank still owns the property and yes, it is still commercial. 

You say that a certain bank won't be interested in this specific property because of the seller's asking price. Go call 20, 30, 40 banks. Seriously, open your phonebook and call every bank and credit union in your state. Also, use BiggerPockets to search for commercial lenders. Don't stop calling until you get a "yes." It only takes one to make this happen. 

Best of luck.

In order to own a commercial multi-family property, any property with at least 5 units will need to be owned by a company (ex. LLC), not an individual. The magic numbers are 1-4 units is residential, but as soon as you hit 5 units, the game changes.

First off, I would ask the owner why the price is as high as it is. What are comparable units in the area priced at? What is the owner's motivation for selling? Does he need the cash from the sale ASAP or is he a buy and hold owner who is looking to get as much profit as he can out of the property?

If you are absolutely set on getting this property, here's how you can get it. Negotiate the price lower. Tell the owner you'll pay 70-80% because a bank won't possibly accept the price he is asking. If he refuses, you still have at least two more options to consider. One would be owner-financing. You wouldn't even need to negotiate the price any lower if the monthly numbers work. Why? Because you won't need to put any money down, the property will cash flow, and the owner will be receiving his monthly check (acting as if he were the bank) for the length of the term you two agree on (15-25 years). As a last resort, you could seek a combination of hard money and/or private lenders in your network/area. "But I don't have a network." Yes you do. You have doctors, a dentist, real estate agents, lawyers and other people who you know. Go present the deal to them. Act as if you were meeting with a bank. Be as professional as possible- this is purely a business transaction/investment. 

Now that I've told you how, you have no more excuses. Go get that property. :)

Welcome to BiggerPockets, Darrian! I would recommend searching "Phoenix Arizona" in the search field at the top of the page. Don't be afraid to connect with local members and investors from your area. Good luck!

Elena, I am glad that the conversation with the tenant went well. Good luck in your future endeavors! 

Welcome to BiggerPockets, Ryan! Good luck with your future RE investments!