All Forum Posts by: Nixon C.

Thanks Kelli, Ill check them out!

@Kenneth Bentley - Curious if you were able to find a lender to offer you a first lien HELOC on your rental property. I am thinking about doing the same. Hoping you or anyone else can offer some insight.

I am in the process of purchasing a new build property in Tiffin, Iowa, which i will be renting out as a midterm rental. Any recommendations for interior designers in the area? 

Hello, looking for a realtor in the McAllen, TX market to purchase my first multi unit property. I've reached out to a few but have not gotten any responses back. Hoping to find someone to connect with.

Hey everyone,

I'm diving into real estate investing and considering tapping into my home equity via a HELOC to fund the down payment for my first rental property. I'm wondering if anyone has experience with this – do I need to use the same lender for both the HELOC and mortgage application? Any insights or advice on navigating this process would be greatly appreciated!

Thanks in advance!

Quote from @Dan H.:

If someone asked me if they should invest their life savings with a rookie RE sponsor, my answer would be H3ll no!

Despite your good intentions, that is what you are asking.  In this RE environment, I think you are as likely to lose the money as make a good return.   

With current safe returns where they are such as CDs, that is where I would park the money.  Maybe educate on notes or RE, but start investing with your own money.  Once you have things figured out and significant experience then maybe you are ready to risk your mom’s lifetime savings. You are not there.

I think the more likely scenario is you calculate in supplementing your mom’s living expenses.  She paid your way for many years, now it is your turn.  

Good luck

That's actually a valid point and I would agree with you actually. I am im the process of starting to invest with my own money. I'm working with my agent and lender to find my first property.

Your last point is likely the most realistic scenario at this point. In our culture, the parents work to support their kids with the expectation that the kids will one day take care of them when they are old and need help.

I was just wanting to seeing others' perspectives in this community. 

Quote from @G. Brian Davis:

Conventional wisdom is to pull back on risk as you approach retirement, but given your mom's lack of savings, I think she's going to have to accept more risk in order to try to get where she wants to be.

A first priority would be to find a way to house hack and eliminate her housing payment. There are more options than multifamily - she could convert her garage into an ADU for example. My cofounder at SparkRental, Deni Supplee, hosted a foreign exchange student to house hack when she was in her late 50s and early 60s. The stipend covered her mortgage payment.

I'd then look into the concept of "infinite returns." I wrote about this on BP not long ago. The fastest turnover to get your investing capital back is the BRRRR strategy, but it's a lot easier and takes less skill to invest passively in syndications that plan to refinance to return investors' capital. We've invested in some deals like this in our passive investment club, so each member could invest relatively small amounts. Either way, it lets you reinvest the same investing capital over and over.

Just start looking for ways to boost her savings rate and start investing every penny possible for compounding returns. She's going to be on the catch-up plan, so she might need to tighten her belt a bit. Best of luck!

 Ill look into Infinite returns. Sounds like a great concept. 

thanks for the recommendations.

Quote from @Theresa Harris:

Unless you are living in the area where the rental is, managing it remotely is not a good idea.  Also, will she be able to qualify for a mortgage, if not, putting all of her money towards a house is not anything I would do.

What sort of pension will she have?

My mom who is older than yours only gets a government pension, but she owns her house. For a while she had a house with a rental suite and rented it out for extra income.  She just sold that to move closer to us and as house prices are a lot lower where we are, she had quite a bit left over.  She could have bought a second home as a rental, but with interest rates at 5%-she'd make more money keeping her money in the bank and not have to deal with tenants, so that is what she did.

If purchasing a rental property put of state, then I wouldn't be managing the property. I would be relying on a property manager, so it will be important to build my team. She wouldn't qualify for a mortgage. The idea is that I would be the one to find the deals and obtaining the loans. She would just contribute a percentage for the down-payments on my deals. I would be the active investor while she's a silent investor. 

She doesn't have any pension plan and doesnt own a house. She will only be collecting from Social Security when she decides to stop working. She dedicated her life to work just to support me and did not consider saving for retirement. 

I will likely be the one having to fund her retirement, which is fine. I was just hoping to take advantage of whatever capital she does have, and making it go further by investing it in real estate.

Hey fellow investors,

I wanted to reach out to the community for some advice on a potential real estate investment strategy I've been considering.

To give you a bit of background, I currently reside in Southern California and am eager to dive into the world of real estate investing to secure a financial foundation for my retirement. Fortunately, I have a 401K through my job and have built up some equity from my primary residence.

On the other hand, my mom, who is turning 60, is facing retirement without any dedicated funds. She's a single mother who migrated to the US from Southeast Asia and, lacking much formal education or guidance on retirement savings, has been working as a caregiver for the elderly for most of her life. She supported me through school, and now that I'm stable in my career, I want to return the favor by helping her build a retirement nest egg.

Her financial situation isn't ideal, with maybe only about $40K to her name and no significant assets. I'm considering a real estate investment strategy to assist her, where she would contribute whatever cash she has saved towards cash-flowing properties in the Midwest. The idea is for her to be a silent partner, while I take on the more active role of finding deals and managing the properties.

I'd love to hear your thoughts and experiences on whether this could be a realistic strategy to get me started in real estate investing while at the same time help her establish a source of retirement income in the next 5-10 years. Do you think it's feasible, or is it potentially too late for her to benefit from such an investment? Any advice or insights would be greatly appreciated!

Looking forward to your input.