All Forum Posts by: Mitch Miller

Mark wecome to bigger pockets and REI. You are joining the hot scene x2. Both Brrrr and Raleigh area are blowing up. Its not as easy as it used to be to find distressed properties (for a deal) in the raleigh market. I dont have direct contacts for you in the area of finding deals but I would hit up the networking events like TREA, BiggerPockets Meetup, Dealmakers sessions and so forth to meet some players and try to find a deal that way.

As far as lenders, there are quite a few different ways to go about it but most lenders will have a process for a brrrrr the most typical is a conventional loan that you wait 3-6 months seasoning to refi. You could do a hard money loan then refi but that still has a 3-6 month seasoning if there is a lien on the house. You could do delayed financing which is pay "Cash" (no lien on the house) and refi faster. Just make sure you know the requirements of the lenders, mostly around ARV and adding all costs to the hud to make sure you get maximum amount when refing. I recently heard about the Freddie product called a homestyle loan, not a clean brrrrr but could get you all in (purchase and reno) for 15% down. Happy to share a couple lenders that work with investors if wanted.

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@Matthew Hetrick

Every area has a housing authority.  This is what I found for your county.  https://secureservercdn.net/45...

Nice buy!

@Sarah Lyon I would recommend a real estate cpa first and foremost. I’m no cpa but if you use retirement funds you have to pay cash for everything, as in you can’t use leverage with your retirement accounts without penalties. There are also some tricky rules about flipping properties as it can sometimes be considered Active investment which isn’t allowed. A good cpa will help you through all that just my two cents from what you mentioned in your post about using an fha loan and ira moneys. Sorry I have no good recommendations on a real estate Focused financial advisor.

@Igor S. Perfect, see you there!

Woof, there are a lot of variables in what you said.  I am going to make an assumption and say you are going to be buying Commercial properties (residential 5 and above units, commercial space, and industrial space).  Most lenders in the commercial space don't really look at you as much as the property and the income it produce. So your good credit score is helpful but not as important as it would be in a smaller loan.  Think of it as buying a business, the property needs to have a certain debt coverage ratio. As far as pre approval in the commercial space is more of a relationship.  Most lenders want to see experience in real estate or business, and networth around what the loan is for.  These are loose guidelines but things I have seen frequently.  I would talk to commercial lenders in the Raleigh/Cary/Triangle area or the area you are looking.  Bring your business plan and ask what would be next steps once you find a property. There really isn't a commercial loan pre approval because it is so property based from my experience.  

@Jonathan Avalos I am also happy to meet up and chat real estate. You can just send private message and we can get something on the books if you are interested.  

@Abigail Veit No right or wrong answer here but I'm in the do the house hack sooner than later. The triangle is only growing, and the interest rates are rock bottom. If you stay at your parents and just try to buy a pure rental, you will need 20-25% down payment which will add limitations to where you purchase. If you purchase a house for yourself, "primary", you and do as low as 5% (conventional, I would Avoid FHA for multiple reasons). Which gives you plenty of options here in the triangle. You can then do the house hack where you rent rooms and are back to living for very little if not free. Make sure you add in the added benefits of owning real estate, appreciation and principle paydown, you should end up better than just living for free, you will be making money. As for your timeline I actually think your timeline is perfect. If you do move in the next 6-12 months you can purchase another property as a primary residency. Just make sure that the property can carry the costs of ownership once you move out and you will be golden.

@Charity Carmody there is actually a bigger pockets meet up every second Wednesday of the month. It’s normally held at the pickled onion up off of glenwood. It’s a great place to meet a bunch of people in the space.