All Forum Posts by: Michael Randle

Personally if you only have 30k in student loans and 30k in the bank. Pay off those loans. You cannot declare bankruptcy on student loans (very rare exception, like I can only think of one time) and if you get behind the government can take money directly out of your paychecks. Personally when I get enough equity and cash on hand to pay my student loans they are gone. But I have considerably more than you and stopping my investing to pay down that debt would be like waiting for my first tree to grow to start on my forest. You have no excuse though, you will have made back your 30k in around 8-10 months.

Bump the post. I would also like to know if anything came about on your development in the Denver area.

@Joel B., Note sent with contact info.

Tyreese Gadlin Everyone has told you to do extra homework. Legally and ethically this would not cause a problem if you decided to back out of the deal. And you should have a contingency in the offer that allows you too if the financials do not match up do to follow up discovery. Side note, where did you find this property and how did you discover it? How close is it located to FE Warren?

Yes. With a VA loan there is an option that when a house is sold that the VA loan on the house can be transferred directly to the new owner. Military affiliation or not. So my VA loan on my private residency can be transferred so Joe Somebody right off the street when I decide to sell.

So if your father buys a home, you BRRRR and then buy it from him after 1-2 years (depending on capital gain etc) you have used the VA for your home. I also believe that if your father died in combat, you might be able to use the VA loan. Probably check with the VA on that one, you can email them questions and they get back to you at the speed of government.

The problem is a VA loan (at least when I was looking to use it) cannot be used for the Rehab portion of your BRRRR strategy, plus if the home requires rehab it might not qualify for the loan in the first place. VA loans require a second inspection and the standards are kind of higher than conventional, or so I have been told.

That means you need to get kind of creative if you are going to be BRRRR with the loan. There are ways but it takes more leg work since the property would have to change owners 3-4 times in less than a year.

Hello Local BP community,

I was hoping to get a lead on a local Commercial Lender or broker (or bank) I can begin talking to about getting a loan for a small multi-family. Looking to see what I qualify for and ways to improve my personal finance in order to get better. Added benefit is if after we get the details worked out he might have some brokers I can be put in contact with.

Any direction is greatly appreciated!

Mike

Hello BP, I want to get into small multi family units (4-10) and I was hoping to get pointed in the right direction to where I might be able to find some reasonable deals. The local market is very crazy right now so all the public source websites have almost 2x $ per square foot than SFR. I also have read those are usually the Junkers. I know local REIA would be a good place (waiting on next meet up). Should I reach out to a broker or are they just going to think of me as a tire kicker also? Would using a public search website and letter writing some owners work (wholesaleish but for myself)? What should a newbie do in a hot market to try and find something reasonable? Thanks!

Brent Coombs , the statistics I have read a few places and pod casts have quoted is generally ~8%.

This sounds like the tenant wanting to save face due to his short comings the previous month. Give him a $5 credit on next months rent and move on. He will feel he won a fight against "the man". And you prevent future fights and found a short coming in your process (no back up handy man). That is a win-win for only a $5 fee. On a side note, how are you liking Lubbock and where have you invested? I am working on my first deal and would love some insight of you can give me some.

Your call, I am assuming you have something about illegal activities and eviction. If she is over 18 I would pull her aside and have a talk to her about it. No smoking in her room, house etc, whatever you choose, no dealing etc. Lay down your expectations of it kept under wraps and never wanting to see or smell it again. Tell her next time immediate eviction for her mom and grandma. But after that move on. Your state is in the process of voting for medical weed so expect this sort of thing to be very common. Fear of God and then move on. It doesn't hurt and until it hurts your property or business no need to get your panties in a bunch. Think of it like this, if she was 18 and drinking a glass of wine while doing laundry how big of a deal would you make it?