All Forum Posts by: Scott Hollister

@Charlie Nghiem, Welcome! 

I think I might be confused, unless I misread the above. What it sounds like is that you are purchasing a property with an interest only loan?

• Whether its hard money, usually at 12% 12 month term
• Or HELOC which is usually 10 year interest only and 15 year repayment. (Both can vary in terms) 

I think you're creating WAY too much work for yourself. How much money do you have with your HELOC? That is CASH that you draw on, I was told its like a giant credit card for your home. If I were you I would make the cash offer with your HELOC to get the property. That way you don't lose TONS of money with:

• Hard money WILL have regulations on credit and income
• You will have to get an appraisal
• You will have to show experience with previous investment properties (My area requires 4 deals)
• You WILL owe that balance at the end of the term (If not you will get buried in extension fees) 
• POINTS! This is by far the hardest part of HM for me. It just eats up my profits like an alligator 

Versus: 

• HELOC. Your money, cash offer, lower interest rate, longer repayment period.

I see this as an easy decision? Also, you can do a cash out refinance after the 6 month seasoning period now. (I have found multiple banks willing to do so under the 75-80% LTV.)

Welcome @Todd Columbus! 

I live in Vernon also and its great to see other people in town investing! @Rick Santasiere is great guy to know who is also knowledgable in real estate investing! (A broker and a REI is a hard combo to find)

Feel free to come to our next meet up in November on the 15th from 6-8pm at Right Trac Financing! @Kit Crowne is a gracious host who is knowledgable in REI! We look forward to seeing you there Todd!

Welcome @Omar Ongoco!

I love that you took @Brandon Turner advice about becoming more active on BP! (Action is paramount to your REI success)

Its hard to say what town will be the next "hot thing". It is a bit like gambling, millionaires don't do it so why should you? My advice would be to invest in that area IF it has good schools and job growth. (Or both of these are upcoming)

The creative way of getting in the market is to add value. Whether that is getting a hard money loan on a REO or going to foreclosure auctions. (Be careful about auctions and do your due diligence first)

Start with your goals, what are the actionable steps to get you there in 5 years? 

• Do you have a primary in this area? Have you thought about house hacking a duplex? Its a great way to enter in REI and that will give you 2-4 units with low money down (FHA first time home buyer)
• Flipping is a tough business when you are not experienced. The TV shows paint the wrong picture and the best flippers are extremely boring. They have a niche in the market and relentlessly stick to their knowledge and understanding of that market. 
• If your goal is to get 5 rental units: the quickest way would be to house hack a 4 unit multifamily, then in a few years take out a HELOC (You can go up to 100% LTV if you find the right bank) partner with hard money to buy, rehab, rent, and refinance that new property. Boom you just completed your goal in half the time. (I made it sound easy, sorry;)

Keep up the good work and please ask any more questions to help you achieve your goals! 

@Stephen Craig you go out until you can find them. (In my experience) 

I had issues with my house hack (2 Houses on 1 deed) They had to go out 10-15 miles to use comps in neighboring towns. 

Is this possible in your area? Is there anyone you can talk to in your local meet up? 

Congrats @Neil Seip on taking action! 

1. One of the best financial decisions you can make IF you choose a wise investment. 
2. Check out this 2012 Landlord Rights and Responsibilities I found on a google search. Check to see if there is a new edition out. 
3. This is a loaded question. Here are the ones I look out for. I am new to this as well so its still fresh in my mind. 
   1. Treat it like a business. 
   2. Read and listen to educational material. The podcasts are great! BP has plenty of books to help first time landlords. Many people find this book a good read. (Landlording on Auto-Pilot)
   3. Try to find an investment where you are living for "free". This means rent covers your mortgage payment. Even better if you make some off the top after all expenses. 
   4. Use the BP calculator and start farming your area for a great property. Look at every property that you see, this will help you tremendously when you find that great deal! You'll be able to differentiate between what is and what isn't a deal. No wasting time, got to pull the trigger! 
   5. Which brings me to the next one, ACTION! Just do it, don't wait to read that book or listen to that podcast. JUST DO IT! Force yourself to be a beast when it comes to action! 
   6. Patience. Learn as you go, experience is the best teacher. That doesn't mean be negligent and wing it but make the best decisions with what you have. 
   7. Don't be afraid to ask for advice. (Credible source of course)
   8. Go to your local meet up! I can't stress how much of a great experience this was for me and still is! It has grown my knowledge and has put me in contact with other professionals. 
   9. Did I say podcasts? I want to repeat this because this is the equivalent to an associates degree in Real Estate Investing. (IMO) Just put one on during your car ride. Also, successful people make the best of down time and you will to if you want it bad enough! You have the discipline! 

Best of luck Neil! 

Welcome @Zach Bryan,

A good job is a great first step. Also look into using your VA loan for a owner occupied duplex. It is a great way to get started in Real Estate investing with a small amount of money.

I would recommend that you buy an investment house so that you have the possibility to live for free. If you just flip a house that will be the last time you will get money from it. But decide what is best for you in your situation. My advice would be to start small with a house hack, a flip might be overwhelming if you're just starting out. 

Actionable Advice:

• Listen to the BiggerPockets Podcast
• Read books that apply to your situation. (BP Library)
• Go to your local meet ups.
• Start farming your area. Get the zillow app and look at the houses daily. Get familiar with sale prices and what are in them. New kitchens? New baths? Central Air? Garage? Large lots? Access to highways? Good schools and job growth? ETC...
• Research house hacking. I believe this is the best path for your situation.
• Connect with someone that offers VA loans.

Best of Luck Zach! 

Hello @Neal Little,

I worry about this as well. Just make sure you surround yourself with people you trust. For instance, almost everyone at our group has a farm area they focus in. We are mostly small so going into other farm areas isn't beneficial. 

As for funding. We had a hard money lender come in and speak with us about that. He said he doesn't invest in real estate because he doesn't want to be a direct competitor. He would clean up seeing how him and his partner have 30-50 million dollars to lend. 

My advice is to surround yourself with people that want to see you succeed, because when you succeed they make money as well. It has to be a win-win situation for all parties involved. Don't forget that this is a business built on your word and who you are as an individual. Keep your character strong and you will be rewarded because people will notice that and want to work with you. 

Also, make sure you have your funding in line before you find a house you love. If you have a strong cash offer and you're the first one there, its hard to beat. (Cash offer= hard money lender I'm assuming?) 

I worked with RCN Captial for my first deal and I sent them all the information. Don't be worried, find a credible lender and get pre-approved. They are nationwide as well. Remember, choose a lender that has your best interest in mind. They are just one lender, pick the best one for your goals. 

Best of luck Neal!

Welcome @Christopher French,

You have come to the best online forum for real estate investors! You will find people here that are willing to help you in your dream to make real estate work for you. They are dedicated and hardworking professionals aiming to help each other. No ignorance here;)

• Im not sure what you mean by flipping to wholesalers? Does that mean a wholesaler to a wholesaler? Im assuming you want to be a wholesaler yourself? Check out some of the podcasts with wholesalers, make sure it is the right path for you and your real estate goals to make 45k a year. 
• Shift the thinking of your mindset. You said "if i get there". You have to 
  • set a goal, 
  • write it down, 
  • cut it to actionable chunks, 
  • and relentlessly attack it until you finish it! 

Check this list off: 

1. 22 1/2 Actionable Tips
2. Listen to the BP podcast. ALL of them:) 
3. You are paying down your bills, keep up the good work! 
4. Network with others on this site. 
5. Start looking at investments in your area. Look at everything that pops up and what they have sold for. This gives you education for when you make your first deal.
6. Write down your own specific goals. I like the SMART goal method. 
7. Check out the next local meet up in your area. This HAS helped me to create over 60k in equity on my first REO BRRRR. 

I've got nothing but respect for you, school while working 60-hour weeks. If you have that type of consistent work ethic you will beat out most of the competition. Keep going strong Chris! 

Welcome @Joe Grebe!

I love that you're taking care of your family and planning wisely for retirement while seeking passive cash flow from rental properties. Just slightly reword that first goal, instead of affording a bigger place I want you to focus on trying to live for "free" and offset a full price mortgage! 

Joe, you have some of the best financing available. I would focus on using your VA loan for duplex that might be out of date or need some work. (Something that is livable but you can "fix up" as you go). Unless you wanted to do a rehab loan (Around here its 5% down).

The goal to add value instead of buying something at face value. 

• Can you rent out your current home and make more than the mortgage payment? 
• Check with the VA requirements. You might be allowed to have two if you haven't reached your max entitlement.

Best of luck Joe! 

@Mark S.,

I would be cautious. (I am a new investor with no background on buying into an LLC)

My first questions: 

1. Is this group credible? 
2. Who told you about it? Do you trust this person? 
3. What happens if the group dissolves or a property goes bad? 
4. Why not start your own LLC?

It sounds like you have capital, why not invest in a property yourself and learn as you go while seeking knowledge and information from the forums and local meet ups?