All Forum Posts by: Nick Riccio

@Chandler Williams Congrats on taking action! While that might be a challenge, here’s a few things I’d consider.

1. Continue to save more. That might work for a DP in your market, but you’ll need to consider additional reserves, expenses, maintenance, etc. I’d like to see more of a cushion for you.

2. Explore Low DP & DP Assistance programs: There are many options available (FHA loan for multifamily) & DP Assistance programs so that you can save your liquid funds for reserves, etc.

3. Network. If you haven’t already, network. Meet other investor, agents, lenders, etc. It’ll help drastically. 

4. Learn. Spend time learning, listening to podcasts, underwriting deals.

Once you’re ready. Strike. 

Best of luck!

@Noah Kellar Congrats on getting started man!

Not exactly sure of your question, but here are a few of my thoughts…

1. ARV seems tight. Especially, expect the renovation to cost more than that. It's not what you want to hear, but it's the reality of construction on old homes.

2. Loan Product: Is this a single family? If so, I’d explore your conventional options. As a first time buyer, you can purchase for as little as 3% down, or 5% if not your first purchase. You’ll likely save on the mortgage insurance which will help on the cash flow side of things.

Hope this helps!

@Jace Perez congrats on getting started!

It's definitely a challenge with the market right now. A lot of markets are still incredibly expensive, so it becomes more important to find a great deal, or a value-add deal. We help people with this all the time as most deals on the MLS will not be "good deals".

Option 1: Start trying to network, and build an off-market pipeline

Option 2: Be open to value-add projects. Properties that need a lot of work, or that you can finish additional living space to add value.

I’ve personally done this 3 times and created over $1M in equity and live for free in Boston, Ma. It just takes some patience and creativity. 

HI @Stuart Johnson congrats on getting started! 

This should not be the case with FHA, a lease should not be required. Typically, we can use the appraisers opinion of "market rent". I'd ask your lender about this.

Option 2: I have rented apartments when they are down to the studs. I’d put together a marketing piece about the unit. Finishes, layout (if you can), and anything else relevant to the unit. Then, I’d list the unit. I had a ton of interest as renters were very excited about being the first to live in a unit.

@Kyle Curtin awesome share, man! 

I’ve done 2/3 of these and they have worked out great. At one of my properties, we rent out parking spaces to non-tenants for additional income, and we built storage in the basement.

Your spot-on with the storage units - they are incredibly easy/cheap to build and a great value add.

@LaMancha Sims do you have personal income? If so, I'd look to qualify for an FHA/conventional loan. You can explore low down payment options (3% down for a single family if you are a first time buyer, or FHA 3.5% down regardless of FTHB status). There are also many down payment assistance programs available as well.

This is frustrating!! I’m a loan officer & house hacker, so we run into this all the time.

1. How far “off” are you from meeting SS? Other things If close, look into cheaper homeowners insurance options & or rate buy-downs to make the numbers work.

2. Has the LO disputed the appraisal with new comps for the appraiser to consider? It sounds like that might have already happened but just want to make sure.

The HUD rents will not really help, unfortunately. If the comps truly do support the as-is condition of your property, I'd make sure the LO & agent provide the comps. What I see a lot (and not sure if this is true in your case), is "it's currently a 2 bed but I'm making it a 3 bed" - things like that, the appraiser cannot use.

I hope this helps!

Hi Lucia - congrats on getting started! I’m a buy & hold investor, and have no experience wholesaling, so take my advice with a grain of salt.

What I will say, focusing on learning & education starting out is critical. I’d make sure you are learning and consuming as much as you can. Wholesaling is not easy and likely will take you time, so definitely focus on the education while you still have time to do so. This will allow you to take action when the time is right!

I do not have any experience with this, but I would say it is likely worth hiring a professional, especially with something as critical as this. Again - maybe people have great experience with this, but I do believe it’s always best to hire a professional for things like this. Best of luck!

It depends on what you are looking for. 

For financing, you can obtain residential or commercial financing. This would qualify for conventional & FHA financing, and typically, commercial lenders (at least in my experience) will finance down to 4 units.