All Forum Posts by: Kimberly Marshall

good bigger pockets video.  the first 2 minutes get to the heart of my post.

what was your actual goal when you decided to purchase the property.  we need way more information

I would just ask him what type of rate of return and terms he would be happy with. Once he gives you the answer, you run your numbers and see if that works for you and your business strategy. I have someone who wants to invest in my deal but only wants to invest $10,000. It's not worth it for me to use that $10,000 to just give them a return. I have someone who wants to give me $50,000 to invest in my deals but wants $10,000 return within 12 months. That's a 20% return. No way in the world. Hard money lenders don't even charge those rates. You would also need to figure out if YOU want to share your profits or give a return to him for a long period of time if you plan on holding onto a long term rental. That's a no go for me. I don't want someone in my pockets for more than 8 months. If they ever decide they want out, that could put me in a bind. So that is something to think about. For me, I will allow someone to provide at least $40,000 (because that is enough to cover all upfront out of pocket costs for a BRRRR or flip in my Maryland market) and will give them up to 8% interest based on the number of months I use their money. For example, if they gave me $50,000 for a BRRRR, I would ask them what type of return they would be happy with. Anything over 8% is a non-starter. Anything less than that, I run my numbers and if I can still meet my minimum profit requirements then I will agree to it. So let's say they want 5% return. Based on a 12 month term, the annual return would be $2,500. when you divide that up over 12 months, that's $208.34 a month interest only payment. Let's say it takes me 6 months to buy, fix and refinance my BRRRR into a long term loan. They would get a check for $1,250 at the end of 6 months. Where else can they get that type of return.

The first priority to know what numbers and terms work for MY/YOUR business.  Hope that helps

Starting off, I would look at the bigger pockets youtube channel and check the video playlists for BRRR and the playlist for flipping. those are 2 main strategies that a lot of RE investors implement. Learn them and then figure out which one you would be interested in implementing.

@Taylor L. took the words right out of my mouth. You have to determine what your goal is and a strategy and then stick with it. then you can expand once you get things going with consistent success. You're not in a unique situation, it's just that most people don't have much money or don't want to spend much money to get started. You can use some of that money to flip 2 to 3 properties at a time and collect an immediate return once you sell. You can use some of that money to BRRRR 2 to 3 properties at a time for longer term cashflow and possible appreciation. It depends on your goals, strategy and your market. In some markets, that $150,000 would be a downpayment on a hard money loan for 1 property. In other markets, that $150,000 would be down payments on hard money loans for 2 to 5 properties. The answer to most questions is, it depends. Pick a strategy, learn it, implement it, get good at it, then expand.

What are your real estate investing goals? Are you looking to fix and flip or build a rental portfolio? House hacking would be good because you can have a roof over your head that your tenants are paying for and then you can use that cash to BRRRR or flip some properties.

That's a tough one when you're in an expensive market starting out.  But what is your strategy?  are you trying to buy, fix and flip.  Buy, rehab, rent and refinance.   househack.  It really depends on what your goal is.  

You may want to find some facebook groups that are focused on real estate investing in your local area. often times members will post off market deals and resources.  You can also search online for different wholesalers and be added to their buyers lists.  But before you do that, I would 1) determine your real estate investment goals and 2) determine how you will be able to fund your deals.  There is no point in getting a property under contract if you don't have the financing/lending in place to be able to buy it.  Hope that helps.

I think it depends on where you want to spend your time and energy.  If you want to be a closing agent, then learn how to do all of the paperwork.  I think the same mindset applies to being a contractor or a realtor home decorator.  As an investor/business owner, your time is best spent finding and analyzing deals and putting the resources in place to ensure the deals will get closed and projects will get completed.  so you can spend time and energy trying to save a few thousand dollars.  or you can spend a few thousand dollars for a professional to do what they are good at in order for you to make tens of thousands of dollars.  It's the cost of doing business.  and time is more valuable than money.

It will cost you more but I would look at using a hard money lender or a private lender.  Most of them require you to lend in the name of a business and not your personal name.  I have used Lending Home and Patch of Land for flips I have completed.  They get the loans done quickly as long as the numbers make sense. There are also a number of Private lenders who do not have the same restrictions that banks do.  Connect with people in a facebook group or local real estate investing group for some referrals. 

House Hacking is probably a good strategy you could look into.  this way you get your own place with low out of pocket financing options and have a tenant help pay your mortgage.  find a decent duplex or triplex to purchase.  live in one unit and rent out the other 2.