All Forum Posts by: Christopher Lane

Some banks are different, look around. 

I'm also in the same boat but the bank I looked into said 2 years, but I was able to find a bank with different terms.

If you have the money start with Multi. That's what I'd do.  I don't so I'll start with 3-5 single families, then go to multi and never touch single families again.  Just my 2 cents.

If someone moves out you're not out 100% of your income.

There is usually room to get more rent from all units after a light repair or rehab.

Much more consistent income.

@Brian Bradley I agree, I'm not smart enough to know how to set up my business, but I do know it varies by your goals.   

That being said, I've heard you incorporate an LLC for every $300k worth of properties you own, then have them report to an S-Corp and then take your salary from the S-Corp, not sure if that's true... any insight?

Hi everyone! My name is Chris and I'm happy to be here and looking forward to working with you all.  I love that we can all get together and share successes, failures, good, bad, and ugly. I am a firm believer that sharing information makes the world a better place.

All my best wishes to your future success, 

Chris

Hey Team, Looking to find the "how-to" on getting lending for my first investment deal.  About me:  I'm 5'10" Scorpio who likes long walks on the beach and books about Europe. (lol) I currently have a condo that has a bit of equity in it (~50k) and want to use it smartly.  I have no idea about buying an investment property but I know it's the right answer. I know how to make a relatively educated assessment of a property and whether or not it will be profitable or not.  I also have about 10k in a retirement account that I'm willing to drain for this.

I have no idea how to use hard money, or if I would even want to.

I have no idea how down payments work on investment properties or if there are any other debt services that offer anything else than a 75% LTV amount.

Looking for someone to engage in a discussion with me and help me learn the ropes.

Thanks!!

Hey there team, I am thankful to have come across this website and be able to work with some of you in getting started.

I am new to the game but have some specific questions pertaining to Multi-family investing.

Right now I have a HELOC for about 20k, it will be renegotiable to 35k in June since I haven't owned my house long enough for them to give me an ARV HELOC. I also have 10k in my retirement that I'm going to drain. Should I shop around to find a bank that will? Is this pretty standard in the banking world?

As of right now, my strategy is to buy a few (3-5) single-family houses, all that have great cash flow, bundle them into a portfolio and REFI the whole portfolio, then use that to get into the multifamily game. My assumptions for this: 

1) Multifamily investing is more expensive, thus requiring 25% down of a higher price that frankly I can't afford right now. 

2) Banks will only give a 75% LTV on an investment property that is 5+ doors.

3) Management fees will ruin my bottom line (if I can't negotiate a lower percentage for multiple units).

4) multifamily properties need more work at the price I can afford. 

5) I should walk the properties before I buy, but that means going literally anywhere else since I live in Cali.

6) I don't want a JV or partner. (change my mind)

So, can I get a higher %LTV on multifamily investment properties than 75%?

Is it poor tactics to negotiate a management rate?

Is my strategy logical or is there another way to break into the multifamily market without getting single-family homes first?

I'd love to have someone who has a bunch of units to mentor me and be willing to show me the ropes bespoke to my situation.  

Thanks everyone!