All Forum Posts by: Justin Hammerle

@Todd Vicknair - There is a lot going on here like mortgage assumptions, partial releases, possible second liens.  My experience has been the more simple the deal the more likely it is to work.  The lender is likely to at least test the market if they don't get what they are owed cleanly.

@Robert Fry - 203k loans are great but you should expect longer approval times and a higher admin burden.  Also, the rehab portion can be fairly strict if you end up with a contractor that you are not satisfied with it could turn into a bit of mess to replace them.  

@David HIbbs - you mentioned you haven't tried using private lenders; try reaching out to a few to see what they are offering. You can use the build your team tab to look some up in your area. Using a private lender under a BRRRR strategy can help limit your down payment amount considerably but will you be paying a higher interest rate in the short term.

@Dave Johnson - Some refer to residential as properties that people live in regardless of size.  Others refer to residential as properties people live in up to 4-units; this is dictated by the type of financing you can qualify for.  Commercial to some will have different meanings. Because real estate is so nuanced larger investors tend to focus on a specific use type whether it be residential, industrial or commercial. That wouldn't necessary make other uses worse off.

@Joseph Dasmerces - I think there will be an opportunity in the short term with all the low yield debt coming due for large scale commercial.  Refinance will not be an option for some and this should create some bargain pricing.  Larger institutions are already creating funds in anticipation of this, maybe its worthwhile to explore that route versus individually.

@Leah Ramsey - Even if you were married, you could both individually have FHA loans in your own names. I think what is likely to better dictate your strategy is what you can get approved for individually versus what you can get approved for together.

What I would consider is house hacking a MFH with an FHA with both names on title; Refi out and use your FHA for an additional MF as you can. You save on living expenses which is likely to have a lower impact on your DTI down the road. This is a more proven and common approach for couples whether married or not to build a portfolio.

@Daniel Medina - I would reach out to an estate attorney; they would be the best source to answer your questions specifically regarding your states laws and also to have a will drafted.  My understanding is that inheritance is not taxed unless you're receiving a significant amount (in the multi-millions).

@Kyle Smith - To say what the market may or may not do is always going to be speculation.  I've heard a lot of old timers also say they've never seen anyone play the market and have long term success.  As long as your are being conservative in your analysis and exit strategies I would move forward.

@Aidin Flores - 4 units or less may qualify for financing for occupancy and not solely for investment.  In that case, I would rely on a comparative sales approach versus an income approach in order to value those property types.  IMO properties in excess of 4-units are likely better valued using an income approach because they are mainly purchased for investment purposes.

@Lisa Kattenhorn - I think in a way your last sentence answers your question.  With experience already managing properties you aren't quite getting the same learning benefit someone would get who is just starting out; I think it is a matter of time gained versus cashflow lost and what is more valuable to you presently.