All Forum Posts by: Joshua Messinger

Hey @Andrew Postell! 

Thanks so much for the reply back - If you don't mind me asking two questions:

 What are the most common interest rates that you see on the hard money loans that you get? 

Do you end up holding onto your properties and renting them out for a while, or flip them after refinancing and competing the method? 

Thanks so much once again, and congrats on all of your past success in real estate so far.

Hi everyone! 

Which loans do you find are used the most commonly in the deals that you do. Would love to hear anything you have to say! 

I agree with @Tim Miller! If they are asking to put the cameras up then let them. Then you won't have to worry about managing/controlling the footage that is recorded. 

Hey @Sam Moomey! 

You can get an FHA loan on a tri-plex with only 3.5% down as long as you plan in living in the one unit for the year. Like @Kathleen Osborne had mentioned anything over 4 units will likely require 20 - 25% down on a commercial loan! 

If you are planning on moving out of your current home why not just rent it out? While you live in your multi-family property you can then be getting rent from both homes. 

Best of luck, and if I can ever help with anything feel free to reach out! 

Live Free, 

Josh Messinger

Quote from @Leila Moussavi:

@Joshua Messinger

Thanks for the informative reply Joshua! Quick question regarding your advice that investing OOS would be hard because I don't have systems set up for operations, maintenance, cleaning, acquisition, etc: I don't have these system set up in California, either. I would have to establish these systems in wherever I choose to invest, therefore I'm thinking why not start with OOS, if I'm going to have to set up these systems for properties in-state, anyways? What are you thoughts about this line of thinking?

Thank you!

No problem! 

When setting up these systems OOS it will be much harder since you're new to the area - meaning you will have to figure out a ton about the area before even getting started! 

You have to keep in mind, you are also competing against others who have a very large amount of experience/knowledge in the area. You already have knowledge/experience in your area. Why not leverage that?   

Usually, when getting started you will want to self-manage your property so you can learn about your property's operations/upkeep. Without good knowledge about the upkeep of your rental, it will be hard to set up your own maintenance operations. 

You can leverage the connections you already have to get started, the places you know, and the stories you have in the area you live in. Why leave that experience/knowledge on the table? 

Otherwise, nothing great has come easy so it is truly your decision on what you should do! I hope you found this useful!  

Hey @Leila Moussavi! 

I love the ambition of jumping into making your own due diligence checklist. Though I wouldn't be focusing on the property side of things I would be focusing on the real aspects of what makes a deal or not... The numbers! (Not saying it's a bad thing that you have this checklist but it will be hard to find EXACTLY what you want in the market, so instead I would recommend you want to adapt to what the market will give you, and focus on finding/creating deals at ALL times). Also, I would start small then go big! It will be hard to start investing OOS(Out-of-state) as your first deal as you don't have your systems set up for operations, cleaning, maintenance, acquisition, etc. 

When figuring out what makes or break a deal you need to take a couple of things into consideration:

- Gross revenue the rental property will make

- Expenses the property will have. This includes property taxes, insurance, HOA fees, repairs/maintenance, management fees, Cap Ex reserves, interest payment from your loan, and your principal payment from your loan.

Knowing these figures will allow you to have a better understanding if a property will work for a deal or not. 

I hope you found this useful! If I can help in any other way please feel free to reach out! 

Live Free,

Josh Messinger 

Hey @Reagan Huefner! 

Will your tenants leave if the water isn't fixed by tomorrow morning? How crucial is it for you to keep these tenants in your property? Do they have a long-term lease or are they renting it out short-term? Think from a point of return on investment. Will you make or lose money from doing this? 

If I can help out in any other way please feel free to reach out! 

Live Free,

Josh Messinger 

Quote from @Lauren Zuend:

A quick add-on to @Joshua Messinger's reply, also be careful to look into any annual fees. I am currently a college student and got the Discover IT card -- one great thing about it is that there is no annual fee.

Also, if you plan to get student loans, expect your credit score to temporarily drop (should only be a small amount) when the loan is first taken out, as that is technically taking another line of credit out in your name.

 Yes! I had completely forgotten to mention annual fees. Good catch Lauren! 

Hey @Joel Martinez! 

You are going to want to open a credit card account ASAP! I did this the day I turned 18 and had started with the Discover IT (non-secured) cashback card. 

When you get your card you need to take a couple of things into consideration:

Your credit score - You won't get this until you're first 3-6 months of having the card since you need to use the card to build up activity on it which in turn gives you a score. You can get this by using Experian, FICO, or Mint. 

The utilization rate of the card - I usually keep my spending on my limits around 10%-20%. You never want to show a balance of more than 20% on your card  ONLY IF I can pay off the whole statement balance/credit balance before the billing period I will spend more than 10%-20%.

Length of Credit History - The longer you have credit the more trust your lenders can have in you. A good way to show a longer age of credit is to have your parents add you as an authorized user under their credit. This will then average your age of credit with theirs and give you a higher age of credit.  

Opened Accounts - The more accounts (credit cards) you open will show the more trust your credit unions can have with you. I usually open a credit card every 6 months now. When I had my first card I waited a year to learn more about my credit, before opening my next card. 

If I can help with anything else at all, please don't hesitate to reach out! 

Best of luck! 

Josh

Hey @Joseph McGrath! 

House-hacking for sure is the best way to get started! 

If I can ever help with anything don't hesitate to reach out. 

Best of luck, 

Josh