All Forum Posts by: Christopher Nemlich

Hi All,

I’ve got about 200k to work with to begin my real estate portfolio. I’m trying not to get ahead of myself, but I also want to begin with a longer-term plan in mind. 

My local market is not conducive to investment, so I will be looking out of state, most likely leveraging turnkeys (or BRRRRkeys if lucky) to begin with. In my rough approximation, each property would run 25-40k assuming typical leverage, which would get me about 6-8 properties. 

In reading many of the stories here I’ve seen people having quickly scaled to double digit doors with less capital up front, so my question is what is the best way to approach this if that is my goal? I know BRRRRing would be the holy grail and let my capital work infinitely, but my feeling is that will be difficult remotely, especially as a beginner. 

How would you approach this?

Is Phoenix well-suited to execute the strategy currently?

Unlikely to find something that pencils as a buy and hold in Vegas right now. I’m looking to invest remotely for this reason. 

Are we talking conventional loan? If so, I'm currently being offered 4.625%. If we're talking DSCR-type rental loans I'm getting 6.125% as my best.

This seems to be the prevailing logic I keep coming across. Have you had any issue getting non-conventional (DSCR) rental loans to you as an individual rather than an LLC?

Hello,

I'm going to hopefully be purchasing a few turnkeys properties in the near future using DSCR Rental loans (is there a better name for these?). I've watched and read a lot of the negatives of using an LLC as an individual investor, and it seems to make sense to me to skip the LLC and use umbrella insurance instead. Any concern with doing this if I'm going the rental loan route?

For background, I'm self-employed for the next year so can't go the conventional path.

Thanks

I’m recently in the same boat and have spent much of the past few days looking in to this. The good news is that there are plenty of places that can assist. The bad news is they come with higher fees, higher rates, and different/more restrictive terms than conventional loans. 

I’ve had luck googling “30 year rental loan”, “portfolio loan”, and “portfolio lender”. You want their 30 year rental product, not the portfolio loan yet. 

Here’s the best I’m finding so far:

80% LTV, 6.125%, $75k minimum loan, 2 points in fees plus $995 doc fee, 5 year prepayment penalty. Requires 1.2x DSCR.

It would be great if you could post back here any results you find so we can all comparison shop a bit. 

I’m currently under contract for a duplex a first investment and have run into my first snag. I’m being told by the lender that a 25% down payment is required because it is a duplex, but I was not aware of this in advanced and have modeled it at 20%. 25% wont kill me, but obviously id like to put as little down as possible. Is 25% my only option here or are there other lenders I should consider?

Thank you

@Ashish Mike Angelo@Paul Defngin

Thank you both. I'll go the transparent route and hope for the best.

Hello,

I'm currently working to cashout refi my primary residence as I believe I can free up 80-100k to invest with. In working through the process with the lender I am now being asked for the reasoning for my cashout. Do I need to be worried about explaining exactly what I'm planning to do? Seems like it will be frowned upon to say I'm looking to cashout to leverage up further.