All Forum Posts by: Marcus Gonzalez

20% down is a MINIMUM.  There used to be loans available for investment property that were 75% where the lender allowed a 15% second.  But the second was at a very high interest rate.  Problem now a days is that prices are high and even with 80% financing most properties don’t have positive cash flow.  

You have the problem common to a lot of people getting started; wanting to invest but lacking sufficient capital.  While I don’t know your personal financial situation, I can tell you that a certain amount of capital is necessary even if one were to pull off an IMPROBABLE very highly leveraged purchase.  Here are some of the somewhat unique ways I’ve seen people accumulate capital 

1. Redirected retirement contribution to either self directed plan or to non retirement account
2. Borrowed from their retirement plan
3. Sold their boat, car, RV, etc.
4. Moved into a cheap house and used “sweat equity” to increase value and then obtained a line of credit.
5. Cashed in insurance policy they purchased years ago to help out their cousin starting out in insurance sales
6. Obtained a “pre inheritance” from their aunt
7. Obtained a bonus to switch employers
8. Worked a “side hustle”
9. Borrowed on margin against their stock investments
10. Robbed a liquor store 

@Marcus Gonzalez  this is free and you may find it helpful as the speakers are quite experienced. It is virtual

https://outofstateinvestoracademy.com/2024-summit/

 Hey David,

Great questions here. Regarding finding an agent that is local and works with investors, I would go to local real estate Facebook groups and on here and post what area you are looking for one in and I am sure you will get help. What area are you looking in?

Wholesalers, driving for dollars, zillow and redfin, propwire, are all great resources for finding deals.

I am a loan originator on the DSCR and Hard money side. Most lenders you work with will require to close in an LLC, especially for hard money. Working close with a lender is always beneficial so you can get deals analyzed from the lending end very quickly. One thing to keep in mind, most lenders will require that you have owned a property for 12 months, and have two active trade lines on your credit for 2 years or more. With certain banks, they can count your 12 months of rent, as long as they can source it. This info is based on DSCR and Hard money loans, not FHA, VA, or conventional. Hope this helps!

True Having a solid team around you like agent, lender etc.—will be key to success!!

@Marcus Gonzalez you'll need a general contractor with accurate numbers.

With no experience, you'll probably need 25-30% down for a spec home construction loan.

Welcome to Bigger Pockets ! You have come to the right place to begin your investing journey.

Have you looked into attending local meetings and joining Facebook groups?

You need general liability and builders risk coverage. Also make sure your GC and all subs list you as additional insured on their policies. Most fail to take this last step, or merely obtain insurance certs where they are listed as a certificate holder. 

Investment Info:

Single-family residence other investment in Devils Elbow.

5680 Sqft Design and build in 8 months

What made you interested in investing in this type of deal?

Making vision come to life.

How did you find this deal and how did you negotiate it?

Turnkey

How did you finance this deal?

Hard Money

How did you add value to the deal?

Ground Up new Construction

Lessons learned? Challenges?

A Lot of lessons. Added to company's knowledge

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

YES

@James Walker

Check this product out.  "Universal Storage Container".  

Is your ground already hard surfaced?  

Year 1 tax writeoff.

Can add as you need or are successful.