All Forum Posts by: Lauren Robins

Hi Danilo! When you're just starting out, it's really smart to look at the different property "classes" — A, B, C, and D — not as good or bad, but as different tools for different strategies. Most experienced investors will tell you that Class A properties are typically newer, in prime locations, with high-income tenants. They're attractive because they come with fewer maintenance issues and tend to attract stable, quality renters. They also tend to appreciate well over time, especially in strong markets. The downside is that they’re expensive to acquire, and the rent-to-price ratio often isn’t great, so cash flow can be limited. Plus, during economic downturns, tenants may downgrade to more affordable housing, which adds some risk.

Class B properties are usually the sweet spot for many investors. These are slightly older properties in decent, working- to middle-class neighborhoods. They tend to offer a nice balance of appreciation and cash flow. Because they're not brand new, there's more room to improve them with renovations — making them ideal for value-add or BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategies. These properties are also more recession-resilient than Class A, because people who can't afford Class A often move into B-class housing.

Class C properties are older still, often in blue-collar or more transitional neighborhoods. They typically have better cash flow because purchase prices are lower compared to rents. However, they also come with more maintenance issues, higher tenant turnover, and potentially more management headaches. These are popular for investors chasing strong monthly income, but they do carry more operational risk.

Class D properties are in distressed areas and tend to involve the highest levels of risk. While they can produce the best cash-on-cash returns on paper, they often come with difficult tenants, high crime, lots of deferred maintenance, and frequent vacancies. Managing these successfully often requires a lot of experience, local know-how, and a strong stomach.

So what's “best”? For most beginners, the experienced crowd would suggest starting with a B-class property or maybe a strong C+ in an improving neighborhood. You get decent cash flow without the chaos of D-class, and you still have appreciation potential if you choose your market well. If you’re more risk-averse or investing more passively, Class A might suit you better — just be aware of the lower yield. It's all about matching your strategy, risk tolerance, and long-term goals.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Welcome to the world of real estate investing and flipping! It's an exciting field, and there are a few key ways to find properties that you can flip or invest in. Let's break down the main strategies for finding off-market properties, REO properties, and some websites you can explore.

Finding Off-Market Properties:

Off-market properties are those that are not listed on the MLS (Multiple Listing Service). These properties can often be found at lower prices, giving investors a potential advantage. One common method for finding off-market properties is through direct mail campaigns. You can send postcards or letters to property owners, especially distressed owners or those in pre-foreclosure, offering to buy their property directly from them. Another method is driving for dollars, where you drive through neighborhoods looking for distressed properties or vacant homes. You can then contact the owners directly. Networking is also crucial in real estate investing. By connecting with real estate agents, wholesalers, contractors, and other investors, you can find off-market deals. You can also attend online auctions where some properties are auctioned off, often at lower prices. Additionally, real estate wholesalers specialize in finding off-market properties and then selling them to other investors. By attending networking events or joining investor groups, you can connect with wholesalers. Lastly, social media and forums are great resources. Platforms like BiggerPockets, Facebook real estate groups, or Reddit have communities where investors share off-market deals.

REO Properties (Real Estate Owned):

REO properties are homes that have been foreclosed on and are now owned by the bank or lender. Banks typically want to offload these properties quickly, often at a discount. One way to find REO properties is to visit bank websites, as many banks list their REO properties for sale. Popular banks like Bank of America, Wells Fargo, and Chase often have dedicated REO sections on their websites. Another avenue is foreclosure auctions. If you attend foreclosure auctions in your area, you may find properties that the lender will then list as REO properties. Government auctions are another option. Agencies like Fannie Mae (HomePath), Freddie Mac (HomeSteps), and the Department of Housing and Urban Development (HUD) sell REO properties through their websites or auctions.

Foreclosure.com:

You mentioned foreclosure.com, which is a popular platform for finding distressed properties, including foreclosures, pre-foreclosures, and REOs. It provides access to listings that are not always available on traditional MLS sites. While some investors have had success using this platform, it's important to note that full access to listings on Foreclosure.com requires a subscription fee.

Other Websites to Find Deals:

In addition to Foreclosure.com, there are several other websites where you can find investment properties. Auction.com is a major platform for buying auction properties, including foreclosures and REOs. Another option is Zillow and Realtor.com, which, while mainstream, allow you to filter for foreclosures, auctions, or distressed properties. Hubzu.com is another online auction site where you can find foreclosures and short sales. For government properties, HudHomeStore.com is the official site for HUD homes, which can often be purchased at a discount. Lastly, Craigslist can be a useful resource, especially under the "Real Estate" section, where motivated sellers may list off-market properties.

Important Tips When Flipping:

Flipping properties is not just about finding the right deals—it’s also about executing them correctly. Research the market and ensure that the neighborhood you are targeting has strong demand for the type of property you plan to flip. Calculate your costs carefully, including the purchase price, repairs, holding costs, and selling costs such as commissions and taxes. You should also have a clear exit strategy in place. Whether you plan to sell quickly or hold the property as a rental, make sure you understand the best path forward. It's also wise to work with professionals, such as real estate agents, contractors, and attorneys, to ensure everything runs smoothly and legally.

Risks and Considerations:

Flipping properties can be lucrative, but it comes with its risks. First, make sure you have the capital and financing necessary to purchase, rehab, and hold properties. Many investors use hard money loans for quick flips, so understanding how financing works is key. Additionally, flipping is often time-consuming and not a passive investment. Expect to invest a lot of time, especially if major renovations are needed. Lastly, consider the market conditions. Real estate markets can fluctuate, so it’s essential to assess local trends before jumping into a deal.

In conclusion, finding off-market and REO properties requires persistence, creativity, and the right tools. Websites like foreclosure.com, Auction.com, and HudHomeStore.com can be valuable, but the key to success lies in consistently hunting for deals and building your knowledge and connections in the industry.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hey John! 

First off, thank you for laying out your situation so clearly. A lot of people have faced similar issues after co-signing, especially at a young age, and it’s commendable that you’ve managed to maintain a strong financial profile despite the fallout. The fact that your credit score, work history, savings, and debt-to-income ratio are all solid — and that you’ve already been approved for non-QM and hard money loans — shows you’ve handled this responsibly. Still, it’s incredibly frustrating that a decision made years ago continues to impact you, especially when you never missed a payment yourself.

Now, regarding FHA assumptions: yes, FHA loans are assumable, and the terms you're looking at (2-3%) are phenomenal, especially in today's market. However, FHA requires that anyone assuming a loan meets their full underwriting guidelines — and that includes an evaluation of your recent mortgage history. Since you were legally responsible for a mortgage that was delinquent for 12 consecutive months (even if you weren't the one making payments), FHA lenders are bound by their guidelines to treat that as a serious credit event. Unfortunately, it's usually an automatic disqualification, regardless of context.

There are a few potential paths forward. The most straightforward — though not ideal — option is to wait until the 12-month window has passed from the last missed payment. If the final late was December 2024, that would make you eligible around January 2026. This is the cleanest route in terms of meeting FHA standards without complications, but it obviously doesn’t help if you want to move on this duplex now.

That said, there’s a very slim possibility of success if you prepare a compelling appeal for an exception. This would require thoroughly documenting the fact that the co-borrower was making all payments (bank statements, deposit records, etc.), that you never personally paid or benefited from the mortgage, and ideally showing some legal or written agreement proving it was always their responsibility. Some lenders may submit that to FHA for a manual underwrite or exception, though this is rarely approved — it depends a lot on the lender’s willingness to advocate on your behalf.

As for the idea of using an LLC or entity to assume the FHA loan — unfortunately, FHA does not allow loan assumptions by entities. FHA loans are strictly for owner-occupied properties, and assumptions must be taken over by an individual who will reside in the home. An LLC or trust (even a disregarded one) can't assume the mortgage in this case.

So, short term, your best shot is either a manual underwrite exception (with strong documentation and a persuasive story), or pursuing the duplex using a different financing route — perhaps non-QM or hard money — and then refinancing into a conventional loan or assumption down the line once the 12-month window clears. It’s not the easiest route, but there is still a path forward if you're willing to get a little creative and flexible.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi there, Bruce. In Los Angeles County, executing an Owner Move-In (OMI) eviction is possible under the Rent Stabilization Ordinance (RSO), but it comes with strict requirements. First, you must genuinely intend to move into the unit as your primary residence within 90 days of the tenant vacating and live there for at least two continuous years. You also need to serve a 60-day notice (not 30) and file a formal declaration with the County affirming your intent. Importantly, there are tenant protections that may prevent you from proceeding—if the tenant is over 62, disabled, terminally ill, or has lived there for over 10 years, they may be exempt from OMI eviction unless no comparable vacant units are available. Additionally, the tenant would be entitled to relocation assistance, which can range from around $10,000 to over $25,000, depending on income level and length of tenancy.

Now, the unpermitted status of the 3-bedroom unit adds a layer of complexity. If that unit was originally a 1-bedroom and has been converted to a 3-bedroom without proper permits, it is technically a code violation. This poses two main risks. First, if the city or county becomes aware—either through tenant pushback or the eviction process—they may require the space to be restored to its original condition, potentially at your expense. Second, the fact that it’s unpermitted could undermine your ability to execute an OMI eviction. For an OMI to be valid, the unit must be considered legal and habitable; an illegal conversion could invalidate your right to evict under that rationale.

Given that, you’ll want to tread carefully. You might consider consulting a local real estate attorney who’s experienced with LA County RSO and code enforcement to strategize your next steps. Some investors in your position opt to quietly legalize the conversion if possible, while others pursue cash-for-keys more aggressively to avoid invoking enforcement attention. Either way, having your ducks in a row before making a move will protect you from costly setbacks.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

The BRRRR strategy can be a highly effective method for building a rental portfolio quickly and recycling your initial capital across multiple deals. Many investors love it because, if done correctly, it allows them to pull most or all of their money back out of a property after a refinance, which can then be used to acquire the next one. It's also a great way to force appreciation by increasing a property's value through strategic rehab, rather than depending solely on market growth. And of course, with each property added to your portfolio, you're building multiple streams of rental income and benefiting from the tax advantages that come with owning real estate—things like depreciation and interest deductions can seriously boost your bottom line.

That said, the BRRRR strategy isn't without its pitfalls. The biggest issue many investors face is underestimating rehab costs or timelines. Construction delays, contractor issues, and unexpected repairs can eat away at your budget and delay your refinance, making your projected returns much less appealing. Then there's the risk with the refinance itself—sometimes appraisals come in lower than expected, or lenders change their criteria, which means you don't get as much money back as planned. That leaves more of your capital tied up in the property and slows your ability to scale.

Market conditions also play a huge role in whether BRRRR works well. In a cooling or uncertain market, your after-repair value (ARV) may not support the refinance amount you're counting on. And in a hot market, it's tough to even find deals that work with the BRRRR numbers. Plus, the more properties you acquire, the more management issues you have to handle—bad tenants, repairs, turnovers, etc.—and if you don't have a strong system or team in place, it can get overwhelming fast.

So in short, BRRRR can lead to steady, long-term growth and financial freedom, but only if it’s done with precision and planning. It’s definitely not a “set it and forget it” strategy, and scaling too quickly without solid systems can create serious stress. For a lot of investors, it works beautifully—after they’ve learned a few hard lessons.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

You're at a critical decision point with your property in Southwest Colorado, and the choice between renting it out or selling largely depends on your long-term investment goals. Since you purchased the home for $365,000 in 2017, invested around $200,000 in renovations, and now owe $405,000 after refinancing at a low 3.25% rate, you have significant equity. With the current market value estimated between $825,000 and $850,000, selling could provide approximately $375,000 in net proceeds. However, renting the property would generate about $1,000 per month in cash flow. The key question is whether holding onto the property is the best use of your capital, given your five-year goal of building a cash-flowing portfolio to replace your $120,000 annual income.

If you decide to keep the property, you’ll benefit from a relatively low mortgage rate, continued appreciation potential, and tax advantages such as depreciation. The $1,000 monthly cash flow is solid, but with a cap rate and cash-on-cash return in the 6-7% range, it may not be the best vehicle for achieving your income replacement goal quickly. Managing the rental remotely could also introduce challenges, including the need for a property manager and potential maintenance costs that may eat into your profits. While this option allows you to maintain a growing asset, it may not provide the scalability needed to reach your financial independence target in the next five years.

On the other hand, selling the property and reinvesting in higher-yield rentals could accelerate your path to financial freedom. With $375,000 in proceeds, you could potentially acquire multiple properties in stronger cash-flowing markets, each generating $750 to $1,000 per month in income. This approach could get you closer to $3,000 to $4,000 per month in cash flow, making significant progress toward replacing your $120,000 salary. Additionally, utilizing a 1031 exchange would allow you to defer capital gains taxes and preserve more of your equity for reinvestment. The downside is that you’d be giving up a property with strong appreciation potential and would need to carefully identify new investments that provide both stability and returns.

Given your goal of achieving financial independence through cash flow, selling and reinvesting in stronger rental markets seems like the more strategic move. While keeping the property may offer long-term value, it doesn’t provide the level of income you need to scale quickly. If you're open to exploring high-cash-flow markets and a 1031 exchange strategy, this could be an excellent opportunity to transition your equity into a portfolio that better aligns with your long-term financial goals.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Whether a foundation issue is "too much" depends on several factors, including the property's value, cash flow, financing options, and potential resale implications. A $30,000 foundation repair could be a deal-breaker or an opportunity, depending on the numbers. For example, if the home is worth $300,000, then $30K is about 10% of its value—potentially acceptable if you’re getting a discount or strong cash flow. However, if the home is worth only $100,000, then $30K is a major hit (30% of its value), and you’d need a deep discount to justify the risk.

Additionally, you should consider how the repair affects your return on investment. If the property already cash flows well, will this repair significantly impact your profits? Does the current cash flow justify the added expense, or will it take years to recover? It’s also important to determine whether rents can increase after the repair, or if the repair merely preserves the current rental income without adding value.

If the foundation issue is well-documented, you may be able to negotiate the price down or have the seller cover part of the repair. Requesting a seller credit at closing could help offset some of the upfront costs. Moreover, assessing the structural severity of the problem is crucial—minor settling and cosmetic cracks are routine, but major shifting or drainage problems can lead to ongoing issues, impacting insurance, resale value, and even future financing options.

Resale impact should also be considered. Even after repairing the foundation, some buyers may be hesitant to purchase a home with a history of foundation issues. However, a transferable lifetime warranty from a reputable foundation repair company could help alleviate future buyer concerns.

Ultimately, if you’re getting a good deal and the repair costs fit within your budget, this could still be a solid investment. However, if the foundation problem presents too much risk or consumes too much equity, it may not be worth the trouble. Alternative solutions, such as seller financing or creative structuring (like escrow holdbacks), could help reduce your upfront costs and mitigate risks.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Starting your own real estate investment firm using the syndication model at a smaller scale is a great move, especially given your background in syndication and experience negotiating seller financing. Your plan to pursue off-market Class B-C multifamily deals in Texas using seller financing is a strong niche, as it allows you to leverage creative deal structuring to compete with institutional investors.

Since you don't want to pursue deals in your personal name, forming an LLC is the right step. You should consider structuring your business with a parent holding LLC (e.g., "XYZ Capital LLC") responsible for raising capital, structuring deals, and managing assets. Each property you acquire should then be placed into its own separate property-specific LLC to protect assets from liability and make it easier to manage partnerships. If you plan to bring in investors, setting up a management entity (e.g., "XYZ Management LLC") to oversee operations and collect fees could also be beneficial.

Regarding your mentor's role, you have two options. The first is to keep them in an advisory role, where they provide guidance in exchange for a consulting fee, profit share, or equity in deals on a case-by-case basis. This allows you to maintain full control over your LLC while still benefiting from their expertise. The second option is to bring them in as an equity partner, particularly if they will be co-signing loans or providing capital. If you choose this route, it's crucial to define their equity stake, responsibilities, and exit strategy in a well-drafted operating agreement to avoid future conflicts.

It's highly advisable to consult a real estate attorney early, ideally before raising capital or signing your first deal. An attorney will help you properly structure your LLC, draft a strong operating agreement, ensure your syndication activities comply with SEC regulations, and review seller financing agreements to protect you from unfavorable terms. Many first-time syndicators make the mistake of neglecting SEC compliance when pooling investor funds, which can lead to legal issues down the road.

There are several common mistakes to avoid when getting started. One major pitfall is not structuring ownership correctly when bringing in partners or investors. Your operating agreement should clearly outline decision-making roles, profit splits, and exit strategies. Another risk is overleveraging, as attractive seller-financing terms can sometimes lead investors to overpay for a property. You should also be mindful of capital reserves, as many new investors underestimate the cost of maintaining multifamily properties. Finally, avoid spreading yourself too thin—focusing on a niche, such as Class B-C 8-20 unit properties in Texas, will build credibility and help you scale more effectively.

To attract investors despite limited connections, you should leverage your strengths in off-market deal sourcing and seller financing. Many passive investors seek operators who can find undervalued deals with creative financing, so document your experience, build a deal pipeline, and showcase past negotiation wins to potential partners.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Since you’re already managing properties and involved in real estate investment, learning property management in a more structured way can help you streamline operations, stay compliant with local laws, and scale efficiently. A great first step is to understand the licensing requirements and consider formal education. In New Hampshire, property managers handling rentals for others must hold a real estate broker's license, while in Massachusetts, no specific license is required unless handling security deposits. Enrolling in courses from organizations like the Institute of Real Estate Management (IREM) or the National Association of Residential Property Managers (NARPM) can provide valuable insights. Additionally, local real estate schools, such as Boston University’s Real Estate Studies Program, offer courses that can deepen your understanding.

Beyond formal education, gaining hands-on experience is crucial. Since you already have experience managing properties, optimizing your processes by implementing property management software like AppFolio, Buildium, or Yardi can help you scale. You might also consider shadowing an experienced property manager, interning with a larger real estate investor, or offering to assist a mentor in exchange for learning opportunities. These experiences will give you practical knowledge in areas like tenant screening, lease enforcement, and maintenance coordination.

Finding mentors and networking within the New Hampshire and Massachusetts real estate communities will also accelerate your learning. Joining local real estate and property management groups like the New Hampshire Real Estate Investors Association (NHREIA), the Massachusetts Rental Housing Association (MRHA), and the Greater Boston Real Estate Board (GBREB) can connect you with seasoned professionals. Attending local real estate meetups, investor conferences, and IREM Boston Chapter events is another excellent way to build relationships. 

One of the best ways to connect with experienced property managers is to offer value in exchange for mentorship. You could volunteer to help with bookkeeping, tenant placement, or maintenance coordination for a seasoned property manager or real estate investor. This will help you learn from their experience while also getting some hands-on experience of your own.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Raul, welcome! 

Starting your first Fix & Flip can be an exciting and profitable entry into real estate investing (REI), but it comes with risks that need to be carefully managed. Since you're new to the space, the best way to maximize your success is by educating yourself, building a strong team, and potentially partnering with someone who has experience in flipping houses.

Before jumping into your first deal, it's essential to understand the fundamentals of house flipping. One of the most important concepts is the After Repair Value (ARV)—the estimated resale value of the property after renovations. Investors also follow the 70% Rule, which suggests that a property should be purchased at 70% of its ARV minus estimated repair costs to ensure a healthy profit margin. Additionally, studying the local market is crucial so you know what buyers are looking for and which types of properties sell quickly.

When it comes to financing your first flip, there are multiple options to consider. Hard money loans are commonly used by flippers because they provide quick access to capital, though they come with high interest rates (typically 8-12%). Private lenders, such as family members or real estate investors, can be another flexible option if you have a strong network. If you don't want to take on debt, partnerships with experienced investors can provide funding, knowledge, and credibility. Lastly, if you have personal savings or home equity, you can use cash or a HELOC (Home Equity Line of Credit) to fund your purchase and renovations.

Finding the right deal is just as important as securing financing. Distressed properties—such as foreclosures, auctions, or off-market deals—often provide the best flipping opportunities. Working with wholesalers, real estate agents, or direct mail marketing can help you connect with motivated sellers. Before committing to a purchase, it’s critical to run the numbers carefully to ensure that the deal makes financial sense, factoring in purchase costs, renovation expenses, holding costs, and projected resale value.

Building a reliable team is essential for a successful flip. A general contractor will handle renovations, so it’s important to vet multiple contractors and get detailed estimates. A real estate agent can assist in pricing and selling the property efficiently. Additionally, hiring a home inspector and appraiser can help avoid unexpected costs and ensure that your property is positioned well for resale. If possible, finding a mentor or experienced partner who has successfully flipped properties before can help you avoid common pitfalls and streamline the process.

Since you're new to real estate investing and want to scale into multi-unit properties, finding a partner with experience can be a valuable strategy. A strong partner can bring expertise in deal sourcing, construction and rehab management, financing, or selling flipped properties. To attract the right partner, be clear on what you bring to the table—whether it's capital, time, or business/marketing skills. Many experienced investors are open to Joint Venture (JV) partnerships, where you split profits in exchange for learning and leveraging their experience.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.