All Forum Posts by: Phil Wells

Hey Shelli,

Welcome! There's a ton of meet ups around Spokane and the Inland NW more generally. There's a bunch of info here on the forums about them. You can also check out Meetup, Facebook, Google etc.

Let me know if there's anything I can do to help!

Good luck in your real estate journey,

Phil

Speak to an attorney. 

If you're working with a real estate agent they might have some idea how to exit the contract based on experience and this might help steer you in the right direction but they are not lawyers and cannot advise.

I would suggest bringing on someone with a skillset to compliment your own for future flips. Do you have any friends that are contractors or tradesmen, etc? Bring them into the deal, make them a partner in the deal and learn everything you can from them. Maybe consider partnering with your experienced investor friends too.

I really hope it works out for you!

Hi Ray, 

Welcome to BP and congratulations on your first deal. There are plenty of REIs going on all the time, you'll find details on here, meetup.com, google, facebook, etc - I am also planning on hosting one starting later on in the year. I'll be sure to send you a message with the details.

Don't hesitate to reach out if you need anything.

Good luck in your real estate journey!

Phil

Go with the worst case scenario when running numbers/financial modeling unless you know 100% what the figure will be. Go directly to the source or look at comparable property tax records if you're struggling to get an answer..

Hi all, 

If you're looking for an exciting market to invest in then Spokane might fit the bill. 

redfin.com/blog/booming-real-estate-markets/?fbclid=IwAR16-AteS4RgI75UnOSA89edNGC_29tm3KifT81ORhFhK3HMQ2MEYOAjstg

I'm from Europe originally so I understand your comment on the 2% rule. Where I was living it was closer to the 0.5% rule. 

I would not be averse to 100% financing, after all if someone else pays the bills it's a free house. I bought my primary residence using 100% financing here in the USA (VA loan) and would recommend it to anyone. Once our contractual obligation to occupy the property for 1 year is met we intend to move out and rent the place out.

It all comes down to 2 things: 1) What is your goal, cash flow or net worth? 2) Do the numbers make sense, i.e. will it lose money? If your goal is to increase your net worth and the deal doesn't have negative cash flow then do it. If your goal is to boost your monthly cash flow then your monthly debt service may be too high at 100% for make it work.

You are right to bring up cash reserves - this is very important regardless of what your goal is.

Good luck!

From what I've seen banks don't care about the deal or the asset when it comes to investment properties. Banks care about your credit and your debt to income (DTI) ratio. If your credit is too low or your monthly spending on debt servicing too high then you're unlikely to qualify. You might get lucky and find a local lender that services their own loans that could make it work but I wouldn't rely on it.

However, every locality has unique programs aimed at getting people into houses. Your best bet is to speak to a local lender and see what they can do for you. Worst case if you don't yet qualify they will give you some pointers on how to repair your credit so you can qualify - remember they want your business!

Good luck!

Nothing is impossible. 

Go to your local REI meet ups, talk to people - who knows maybe you'll find an older guy looking to retire who wants to offload his multi-family property portfolio and just wants a monthly paycheck. Who knows maybe he is willing to seller finance, maybe it doesn't even require rehab! This is obviously a dream scenario but you get my point.

Maybe you could house hack your existing property. Maybe you could start a weekend side hustle, for example, as a wholesaler, real estate photographer or real estate agent to bring in extra cash and get to know your local real estate market a little better.

Where there's a will there's a way.

Good luck on your path to financial independence!

Hey Eric, Thanks for the reply. There's a difference, in my opinion, between rules that MAY be exploited for the benefit of one party and rules that WILL lead to abuse. In this instance the potential for abuse is higher than most rules. In addition, this will likely have the opposite outcome to the one the City officials are trying to effect as lower income individuals are priced out of the rental market due to landlords requiring higher deposits and higher credit scores to help mitigate risk.

Wow. I can foresee this leading to abuse in the system and unfair practices. 

Tenants may simply stop paying rent December 1st and then disappear March 1st.

Landlords are going to require perfect credit and higher security deposits. 

This is unlikely to help the people it's intended to protect.