All Forum Posts by: Scott Hollister

Hello @Ryan Waller, 

Welcome to the Forums! You have to start playing defense and offense with your finances. (Read the Millionaire Next Door for more information. Basically, you want to repeat to yourself that "I have the ability and talent to produce more and be financially free" Start changing your mindset, thats the first step.

Second, defense. You want to be extremely frugal where you can. In the US we are on a high consumption diet. So protect yourself and monitor where your money is going out. Start saving for a downpayment, it doesn't have to be 20%. I just saw a first time home buyer rate of 3% down. 

I'm sure you can get a house in Phili for what you have now but weigh out the risk/reward of getting a C/D property. Shoot for a good neighborhood, good schools, and job growth. 

Your actionable steps in this order: 

1. Fix your credit, get out of debt. 
2. Appreciate your job because you have one, if you aren't happy then find a new one. But remember, as long as your working for money its a job. The financially fit have money work for them. 
3. Get pre-approved for an FHA 3.5% down loan.
4. Search for a duplex, triplex, quad apartment. Try to live for free (Possibly make money while you live there) Remember, play defense with your money or you might always find yourself in the same position of debt.

If you can convince someone with private money to partner on a deal, great for you. But make sure you start small and don't get over your head. Read J. Scott's books for flips. 

Private lenders typically want skin in the game, most like to see a history of flips. (From what Ive seen it can be money, equity, property.) They can do things differently than a bank. 

Hello @Tamika D., 

My personal advice would be to read through this and check off each one honestly.

https://www.biggerpockets.com/renewsblog/wp-conten...

I was stuck for 3 years, I was about halfway through the page and magic started to happen. Not really magic, but just action. That is the only difference between where you are and where you want to be, action. 

So your new goal is to check of just one of those for the next 22 1/2 days. You can do it, try your best and don't give up! 

Welcome @Alex Knights, 

Glad to hear that you are starting to invest! Someone wise in our BP group always says that equity has a 0% return. So my advice is to use that money to make money. (*But use it wisely) 

I recently took out a HELOC on my primary to get an investment property in combination with the BRRRR strategy. (Buy, rehab, rent, refinance, repeat.)

Your choices: 

1. Use that HELOC as a down payment on a 4 unit. (multiple payments) P+I+HELOC
2. Use that HELOC in combination with BRRRR. In my onion this is your best choice.
   1. You add value on the 4 unit that needed some work
   2. Once you refinance, you can pay your HELOC back
   3. You said you want to scale, in 6 months you can start again

Its great you have goals. Have you broken them down into yearly, quarterly, monthly, weekly, and daily bite size bits that you can attack?

So remember, surround yourself with good books and people. 

Best of luck!

Welcome @Patrick Anibaldi, 

As a teacher, Im glad to see you wanting the best education for your family. I just finished reading the Millionaire Next Door, It is a great read if you haven't read it already. Make sure that the investment in your sons educated is the right one with private schooling. 

My advice would be to shoot for a higher number than $800, just in case. With private schooling comes extra associated costs. Books, trips, playing the part, etc. I'm sure there is an area worth investing in within a few hours! Best of luck!

@Craig Curelop, 

I haven't been to one but I would seriously consider it.

Benefits: 

• Networking
• Being with like mind individuals (You never know, you could meet your next partner, financing, mentor...)
• Jim Rohn always said that you should invest in yourself, never skimp on education. 
• Consult a CPA, but I would think you can write it off? 

Cons: 

• Cost money....lol

Hello @Robert Ferrell,

From my limited understanding, its like owning a condo. For instance, this same situation went for sale in my town. For that property you were just buying the unit itself. The owner still owned the land and he charged a $50 association fee per month. 

• You're correct, it does limit you just like owning a condo does (surprise assessments, not being able to rent, etc.) 
• Those set of questions are great! I would personally call the current owner on that sign. Best way to find out the answer is from the current source itself (As long as they don't lead you astray) 

If you're just starting out, a 2/3/4 unit owner occupied is the best way to go. Try to get the rent covered while living there. Personally, I like the BRRR strategy on a multi if you're willing to put in sweat equity. You can walk into a property with 0 dollars purchased with your time from the sweat equity. Just remember, time is your most valuable asset. Use it wisely and best of luck!

@Pandu Chimata,

Hard money loan? 

Hello @Ryan White, 

Congrats on looking for deals!

3) Will you be looking to buy rental investments eventually? If so, put as little down as possible with a 203k loan. That way you can find a highest and best use of the extra money. 

Are you sure you want to go through all of this for a 20k buffer? From your numbers I see you will be into for 280k, if houses are selling for 300k that doesn't leave you much wiggle room to mess up on your rehab budget? 

And in my opinion, a owner occupied single family home isn't a investment unless you have an exit option that will prove to be wise. 

• Buy, rehab, hold for two years and sell as primary residence
• Turn into a rental if numbers work (Know your market)
• Etc. 

Hello @Pandu Chimata,

I would think you have to sell both, house to him and condo to you. Which will result in more closing fees. (Consult a closing attorney)

Does the condo prove to be a worthwhile investment? 

You can always do a lease to own for a year term? (Collect rent in meantime) 

(Does he own condo outright?) Rehab condo, sell it, he takes his cut and pays you the down payment and refinances that house while you take the profit from condo. (House+Condo= more money?)