All Forum Posts by: Ryan E.

@Jason Smith HML's really won't fund your deal 100%, at least not for a brand new investor. You wouldn't want them to either. You HAVE to have money for any rehab overages, interest payments, earnest money deposit, etc. Most are going to require 10-25% down. Most will also require you to pay some portion of the rehab. What they fund will also depend on what the property appraised for which you won't know until you are already under contract and moving forward with the deal.

Now, if you find a really great deal that you are able to be all in for less than 70% of ARV that's how you refinance out and pay yourself back as well as the HML along with points, interest, and closing costs. Maybe there are HML's who would fund 100% of costs up to 70% ARV for the right deal and if they already work with whoever you use to get and rehab the deal but it's probably very rare. Point is, you want and need to have plenty in reserves plus your 10% plus down.

Braden Burton what you are doing is a FELONY and is mortgage fraud. Do not proceed with your plan. It is against the law.

@James Nix I was just inquiring if there was a good reason to not pay off the entire amount...maybe there were extra fines or something. Sounds like you are on the right track though. Good luck! 

Why not pay off the whole 4700? 

The downside with putting 20% down and then buying another with 20% down is that you'll be out of money. Sure, you'll have two properties but you'll be out of money and not able to go anywhere. With BRRRR it might take a bit longer but you can keep recycling your money over and over. And it isn't one or the other with either an all cash 40k property or finance a larger property. You could find a hard money lender or a private money lender. That way you can still make "cash" offers, rehab the property, and pull your money out via refinance once rehab is complete.

@Marc-Antoine Tessier I think your energy would be better spent on learning how to find a good enough deal that supports hiring all the manual labor out. Or find a team who's experience, expertise, and network you can leverage to implement the BRRRR strategy or fix and flip strategy. I don't know how to do most manual labor things either but have been able to do some j/v's on some flips without ever even seeing the houses.

If you are set on learning how to sheetrock a house or do plumbing or whatever my first inclination would be to fire up the google and youtube the heck out of everything. 

@Luis Escobar you may need to look for a new lender. The max Fannie loans you can have is 10. But even that aside you could look into commercial financing on a package of homes or package a bunch of houses together under one portfolio loan. I’ve never done this but have heard and read about lots of other investors doing it. 

You could also up the class of property you are looking into. There was a really good thread by @Lance Robinson. He posted about his returns and buying properties in Indianapolis close to the median value for that MSA and how that has allowed him to cash flow well AND take advantage of rising values/rents while mitigating the risks of lower class properties. The median in Indy is $143 so you could purchase 3 or 4 in that range and be good. 

Kristen Selby it’s very easy to get overwhelmed...I think everyone just starting out feels that way. I’ve been on BP for a couple of years and still feel that way occasionally. You can certainly join a REIA and that will help but it’s just one piece of the puzzle. It def is NOT crucial to get your license in my opinion. I don’t think you need to learn any other trade either, at least not beyond what their basic function is. My recommendation would be to just keep reading RE books and on BP, interacting with others, listening to podcasts, do a ton of google and BP searching anytime you have a question and after a few months to a year or so you’ll have a solid strategy and a much better understanding of everything. Good luck!

@Travis Cripps sounds like you guys are in a good place to start out! Great income between the two of you. You have a ton of options and can build a portfolio quickly. One of my good friend's wife is a dentist starting out making north of 200k a year starting out! I've told him that they should stash as much cash as possible and pay the smallest amount that makes sense towards student loans (depending on interest rate etc) so that they can start investing in real estate asap. The are double income, no kids so they have a lot of options...partner on some flips, pay 20% down for rentals, house hack, etc. I think they are interested in partnering on some flips with the idea being to do 2-3 a year so they can pay down student loans faster. They are also playing it smart and not doing anything crazy with this big influx of cash. Anyway, good luck you are on the right track! 

@Jackson Ramirez I would say you are off to a really good start. You have a lot more seed money to start than most if you are going to tap the equity in your condo. I’m no expert by any means but my advice would be to take your time and not rush anything. Take a solid year to devour as much info as you can on BP, RE books, podcasts, meeting other investors, etc and then you will really be able to formulate a solid strategy that makes the most sense for YOU and your situation. It took me about that long to know what I wanted to do and to develop a strategy...and that was after feeling like a dog in a field full of squirrels for many months! And even so my strategy is still changing a little bit.