All Forum Posts by: Maxwell Fontaine

Also thank you @Jeffrey Angell ! The same goes for you too sir! I think I can have a good first property for you too, give me a call soon.

Hi @Sandra Lee patrick, give me a call I would love to help out and try to see where you guys are really looking. Lynchburg is full of pockets and seeing a ton of growth. I hope you both really dive right in. We have goal setting meetings every friday morning at Market at Main downtown starting at 7am.

Hope to see you in the investing world very soon!

@Zach Simpson

Rental first. Reason being that once you purchase a primary home suddentl6kife happens and now you need a new car or etc. If you rent for 2-4 more years and buy 2 rentals during that time your primary residence expenses could be covered completely and your DTI will be in a better place since you'll have rental history as assets going for you.

Secondary point is you can have more time to pick a place for your children to go to school. Especially since they won't be in real school until age 5 anyway.

Rent Rent Rent.

@Eric Oszczypala take $5000 and read as much as that will buy me in general real estate investing.

Then take the one that you feel most equipped to do WELL and go for it on a small scale. (Depending on your target market obviously) .

Hey @Anthony Gayden,

Not exactly, there are a few different causes that go into an insurance company dropping a policy. 

1. The carriers risk tolerance. So everyone or policy has a score and the score is what either attracts or detracts carriers. 

2. The actual building itself COULD be the issue. At which point the carriers add a red flag to the property (which adds to your score) that the wiring may be faulty and it very well could happen again with a simple spark or loosened wires due to old wiring which lasts a bit longer on your "score" than possibly an arson. As you can imagine you always have currents running through the house.

Hopefully that cleared up some things on that aspect. Feel free to call me and we can just talk about any questions you may have about insurance as a whole. I just hope to help in any way.

@Anthony Gayden home owners is similar to car insurance. In the aspect that a higher risk of the company paying out the aggregate (coverage percentage or total), the more they need to be able to cover that with premium prices. And vice versa is true, the lower percentage of you having a claim or them paying the aggregate.

Example.

As a driver you have had 3 speeding tickets of 14+ mph. When your insurance company sees that, they THINK you are likely to cause an accident moreso than the person who hasn't gotten a single ticket in 6 years. As a result for the next handful of years you have a elevated premium until you go some time without a ticket or accident.

HOME OWNERS IS THE SAME THING, JUST BIGGER NUMBERS WHEN THEY PAY CLAIMS.

I hope that's as clear as mud now.

@Alex Smith give me a call I can probably help out on this.

Insurance has a secondary market for stuff like this. So you can still keep the property!

We can talk in more detail on the phone.

Even if you go another route, I hope this gets corrected!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Lynchburg.

Purchase price: $74,500
Cash invested: $5,600

House hacking is my first deal. Used the FHA 203K full loan to rehab the property and just get my foot in the door in the game. Using no property management to take the tenant issues or rents to stay cash flow positive but also to learn how to actually deal with tenants.

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

I was sick of paying rent to my old landlord, I felt like I was giving my money away. So when I learned someone else can pay my bills I jumped at the opportunity to build up my net worth and cover my largest living expense.

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

Wholesaler!!! My real estate agent was close with the wholesaler and let me get a FHA loan instead of getting the cash buyer that he probably was looking for. I 100% leveraged their relationship.

How did you finance this deal?

FHA 203K FULL loan.

How did you add value to the deal?

I rehabbed half of the duplex (the side I live in), and inherited an amazing tenant. I added 50k in equity with using a 30k rehab. No its not a home run but I pay no rent so I am excited.

What was the outcome?

So far I am loving it more and more every day. Completely blessed.

Lessons learned? Challenges?

You dont know what you dont know, a book or podcast can not give you enough information compared to actually going through the process. Just take the jump and you will understand.

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

I HAVE THE BEST AGENT AND MORTGAGE BROKER IN VIRGINIA!
They are specialists in their world, don't think you are saving money by not using a agent. The amount of time you lose trying to do things yourself vs just using an agent far outweighs the "savings".

Hey @Christopher Brian if you need any help or want someone to look over your insurance coverage let me know. I just hope to help.

Nice job on this project.