All Forum Posts by: Peter Baudendistel

@Frank Patalano My first purchase after years of thought was through a turnkey company. Drove 8 hours to inspect before closing, all looked good. Met the property manager, all went well enough. Closed, took about a month on placing first tenant (January, so slow time of year), all good. First month payment came through, PM had discounted first rent 50% off without passing it by me. Second month, tenant has paid 5/6 of what is due and is late with the rest. Convos with PM are fine, but assurances dont pay the bills. I'm waiting to see how this pans out before jumping forward with another turnkey property.

Trolling the market locally for deals, just need to put a bit more time in. Think I've found the right property via MLS, just need to schedule a visit and start negotiations!

I'd recommend getting your feet wet with some books & podcasts in addition to lurking the forums. I can recommend the podcasts "Afford Anything" (something like 30% of her shows are real estate focused) and "Get Rich Education" in addition to the BP podcasts.  Podcasts are a great way to get condensed information quickly if you have a commute of any notable length.

Originally posted by @Christina Linn:

@Matt Wanner This depends a lot on the banks.  Some only allow 4 mortgages on anything 4 units or less, some allow up to 10.  Most banks take 75% of rent as income and your debt to income ratio can be 40% for most investment properties with most banks.  I would certainly not take the "who cares" approach, but to each their own, I guess.  If you want to make it far in real estate you should care about every single number that will affect your next deal.  If you don't understand the game you can't be very good at it!

All that being said, every bank differs.  I am a seasoned investor with 19 rentals and a laundromat and I put my last deal on credit cards, which temporarily dropped my score 100 points.  Because I understand the game I knew I would be able to refi and pull equity out, which I just did a few weeks ago.  Relationship banking is my best friend and I understand everything the bank looks at and needs so that I can keep my numbers where they need to be to get my next property.

It is important to note that the 10 note limit is generally mentioned due to Fannie/Freddie backed loans limitations.  There are privately backed loans out there that will go beyond 10.  Caeli Ridge of Ridge Lending discussed this on today's (2/25/19's) episode of Get Rich Education podcast.  She also mentioned that the best mortgage rates are accessible to anyone over a 740 FICO score. Once that 740 threshold is reached, it doesn't matter if you're 741 or 821.

Several options here, just shooting from the hip:  

1) see if seller will seller finance 

2) see if seller will extend close date for a nominal fee, allowing you to get beyond point where the gift would need to be disclosed (2-ish months from my experience) 

3) take on a partner who can help close the loan, possible a parent or other family member

4) see if a local hard money lender might have an interest in this circumstance (though you'll likely be paying a premium for this convenience!). I've gotten as low of an offer as low as 5.5% with no closing costs on a 15 year private offer as of late... you never know!

Hi Ross. I lived in Lakewood (The Carlyle, I think) as an intern over at the Cargill mine for a summer many years ago.  Lakewood is a great place to be, and I hope it does remain desirable!  

I'm of the opinion that the time to invest is NOW. Trying to time the market is a fool's game. Get your money to work for you as soon as you can, whether it be real estate or the stock market, etc.  I might recommend caution if I was trying to house flip, but house hacking changes the game a little bit. You need a place to live regardless of your investment strategy---so why defer that potential?  

Through successful house hacking of my own home several years ago (airbnb of our upstairs bedrooms, specifically), my wife and I were able to clear about $30k of principal pre-payments as we moved to a more yuppie-fied place.  Our three years of house hacking was completed in good market conditions, but had the market struggled, we still would have been happy to have defrayed our housing costs against a multitude of guests.

@Tyler Hogan I'm in a similar boat. 30 years old, established a fair bit within retirement accounts to this point. Maxed my match in 401k over the last ten years, maxed my Roth IRA contributions as well. By going this Roth IRA route I've been able to capture earnings via the market but retain access to the funds when I need them. I am now liquidating what I can without penalty (Roth IRA contributions, not earnings) to jump start my RE investing and use it as my down payments. I closed on my first remote turnkey property last month (we will see how that goes), and am looking at some more local deals currently with what is left over. I will continue to contribute to the Roth as a holding account until I've got enough built up on the next deal. There's risk in that I could lose money, sure, but I'd rather that than sit in a bank at essentially no interest. I'm also looking to take a loan out on my 401k to provide the down payment on a fourplex that would cashflow the loan payment back on a monthly basis.