All Forum Posts by: Joseph Gallant

i didn't realize a low down payment conventional mortgage was an option, I thought it would need to be 20 percent down or more and would never include PMI. I definitely would enjoy taking advantage of that to avoid refi and also to get down and dirty on a fixer upper. Thank you for the advice!

Hey man,

I'm 24 and bought my first house when I was 23 in a similar financial situation, $30k cash and $10k Roth, no other debts. I went searching for a multifamily and purchased a great deal in Manchester, NH. I was able to buy property at $200k and raise rents from $1,500 to $2,200 and cleaning the place up and spending about $2k on clean up. With FHA loan I only had to put down $7k and spend $5k closing costs.

     After 8 months I plan to refinance on the house as the value of it has raised based on comps in neighborhood. I am now looking for the next house to buy as long as the refinance goes well.

     Best advice to give: find a multi and find a deal. Having someone pay for your living expenses is amazing and finding a deal makes the next purchase come easier. SoCal can be expensive so keep your eyes open! Best of luck and feel free to contact me with questions or anything!

Be humble, be hungry.

Joe

So I have an FHA loan on my house and I have put in a good amount of work into it and saved up some money. If I refinance my loan into a conventional loan, would I be able to buy another multi using FHA right after?

Side note: I have owned my current house for 8 months that is in FHA.

Tried researching online but just checking for clarification!

Be humble. Be hungry.

Joe

I included in my lease that I have the ability to show the apartment within the last 30 days if the tenant chooses to end their tenancy. I would recommend doing that moving forward to make it clear, but I don't think it is too early. If you have a good rapport with your tenant, they shouldn't have an issue.

Depending on how you play it, I would collect money right when you sign the lease. If they choose to sign it now great, but I would recommend getting a lease signed thirty days in advance and require first months rent as a down payment. In MA, I collect first month, last month and security deposit and usually require the full amount or at least the security deposit when the lease is signed. Non-refundable.

That's my advice but you can play it however it works best for you. Be humble, be hungry.

Joe

     I really like the design of the business card, in fact I really like it. If I were being critical, there may be two things I would change.. If it were mine is I would take off "Buy and Hold". It seems that buy and hold may be the only path you want to take in real estate and that's awesome, but having that on there may limit you if you decide to change gears and do more types of investing in the future. Then you'll have a ton of cards with limited information.

     The only thing I might do is put a thin, light colored border around your picture. It may not seem to make a big difference but I think it helps make it look just that much cleaner and more professional.

     I don't mean to sound critical because I like the design and everything. What website did you use to design your business card?

Be humble. Be hungry.

Joe

Thanks for the support @Jerry W. and @Michael S., I've been exploring the blog a little already and I love it. Can't wait to keep things moving!

Hello everyone,

     My name's Joe Gallant and I am a relatively new real estate investor in NH. I recently graduated with my Masters of Business Administration from Nichols College while working at Verizon Wireless in sales. I own a property in Manchester, NH that has been cash flowing nicely. I'm ready to refi on it and make my next purchase, a multifamily in the Londonderry, Derry area of New Hampshire to move into. 

I have been reading up on real estate exams and believe I want to get my real estate license, mainly for access to the MLS but I may dabble in being an agent. I also have a blog/website directed for young real estate investors to teach them about the field and also about money in general, as I believe there is a lack of knowledge in my generation due to a lack of content in schools and the lack of interest by students because of intimidation or difficulty. I don't think I can share the URL, but it is my newest project to help open up the conversation among young adults about money and make them more comfortable.

     All in all, I'm in this game to become financially free, enjoy my life, and make some money doing it. Please reach out to me as I am thrilled to connect with people who are on the same path as me.

Be humble, be hungry.

Joe

It sounds like you've got the cost of property management on there which would alleviate much of the stress of running the property and you are right about the hard money thing. Interest rates would be high and they aren't usually looking for that kind of deal.

Sorry about the newly single status, but I know it can be way to jump into something big after like that. It's not bad to make decisions with your heart just make sure you make the decision with your head and future in mind too! 

Best of luck!

Either way San Diego is beautiful so you are in good situation regardless,

Joe

Hi Chris,

     This has been a very interesting post to read and I love the willingness to dive into the jumbo deal. I'll let you know I am relatively new in the investment world; like you a long time reader. Through my education about real estate I would love to learn a little bit more about the deal.

CONSIDERATIONS: Things I would heavily consider is how you will get the people in to rent the property, being away for so long I hope you have built property management into the expenses equation as BP always points out. The home does look impressive from that picture, but as you mention it looks a lot like a "Real World" (the TV show) house or a playboy mansion, than a traditional home. This could be a great benefit because it is unique or it could limit your target market, especially with the higher cost per night.

     My other concern is that by attracting a more party-like crowd, they could leave a party-like mess and big damage. Nobody will treat your home like you do. 

FINANCING: I think the financing piece is interesting. Obviously you wouldn't be able to get a conventional loan just yet as it would require $300k down. The path I would choose is to find the help of an investor if you are to do the deal, hopefully through BP. I think by having equal investment in the house, you would both be able to take responsibility for the deal, and if they are local to the San Diego area they would be able to monitor the activity of the house, including cash flow, tenants and property managers.

     The next place I would go would be a hard money lender. However, being away for 190 days a year and not having a large real estate portfolio I believe that would be difficult to get funding. I still believe finding a partner/mentor would be the best route.

EXIT STRATEGY: What is your end goal? Make sure you know the answer to that question. In my real estate investment I know that my end goal is to have passive income and completely pay down the mortgage until I deem it time to sell. That's easy to say with small multi-families.

     From the look of your post it seems that you will use this place as a primary residence when you are state-side which is a good idea, just remember how that may impact cash flow. Also, 5 to 10 to 30 years down the road, are you planning on selling the property and retiring? Beware that the property my be difficult to sell. I know it is price below traditional houses in San Diego, but it is not a traditional house either.  Keep the end goal in mind.

     On a final note, I do not want to seem pessimistic! I love the fact that you would like to take the money you've made and work it to ease your work life and create more financial freedom. I just want to make sure that you make the most wise investment for your position. I would start a little bit smaller and grow my portfolio, but I also am only able to obtain smaller loans at this point in my investing career. From an outside perspective, this could be a great investment for you or it could be a money burner and a headache. Make sure you run all the numbers and understand the time and effort investment you are making. I wish you the best and hope you find the information and network that you need to make your financial goals come true. Look forward to seeing the outcome!

Joe