All Forum Posts by: Sam Lewis

I love the idea. I am no expert on whether that would be a conflict of interest (given that it would be the same property management company), but in theory it sounds like a great set up. 

I would double check with Housing Inspections to make sure this is okay.

It's a fool's game to time the market, I truly believe there is opportunity in every market. I buy properties for cash flow and always have cash reserves on the side in case of vacancies. 

@John Azike Jr I househack in the greater Baltimore area and absolutely love it. I am able to live rent-free and am cash flow positive.

Hard money loans are great for funding deals that have the ability to appraise high with the right amount of work. That being said they’re not the best for first timers since there is more to lose than gain if it’s your first experience with real estate.

I always recommend starting with a property that is already in good condition where you can get a low down payment conventional mortgage and immediately start renting rooms and cash flow positive.

Hey Gerald - most hard money lenders will front the entire acquisition + rehab costs and you have to cover 20% of that combined cost as a 'down payment'. Again, every hard money lender is different but I see this very often. 

Welcome to the greater Baltimore area @Kellie Matthews !

I've seen the most successful investors who literally started with nothing begin with wholesaling. You can get a property under contract, and sell it to another investor for a higher price. 

Wholesaling is great when you can help a homeowner out of a bad place (pre-foreclosure, divorce, death, etc.). It's not great when trying to take advantage of someone... which I see very often unfortunately. 

Learn your local market and figure out which properties may have negative equity, recent owner deaths, divorces, etc. 

You can mail letters, door knock, or even direct dial.

As a realtor I stay away from these activities...

Hey @Zahra Dsouza hoping I can help you on this one. Quick tips below:

• #1 Have great pictures, that's crucial for initial interest and showing turn-out
• Answer phone calls within one to two rings to lock-in showings (don't let it go to VM)
• Schedule showings at the same time. More people showing up = competition anxiety
• Consider renting room-by-room. In my area, the average 4 bedroom SFH can rent out for 25-50% more if you rent room by room

If you have any questions please let me know!

@Luke Carl

You got this man! I second the comment about how you respond is super powerful. Be courteous and understanding and it will pay dividends for those who view your reviews.

TBH everytime I book I care more about the location rather than a 4.5 star vs. a 4.8

The dreadful D word... it depends. 

Credit score is solid, 700s+ would be even better. Age is not an issue, however it may result you in having a short credit history. 

Here's the bigger and biggest issue: stable "W2" income. Lenders love seeing stable W2 income since it signals job security, i.e. you would theoretically be more likely to pay off your loan with them. 

Scenario A: You have W2 income. Assumption: You don't make a ton (i.e. less than 60k)

• Traditional hard money lenders would most likely be willing to work with you as long as your debt to income ratio (DTI) is low. Some have magic numbers such as 45%, others higher, others lower.
• That being said, think of all your monthly debt such as a car loan at $300/month, student loans at $200/month, etc. Take your monthly debts (in this case, $500) and divide it by your monthly W2 income. That's a safe estimate for your DTI.

Scenario B: You don't have W2 income. Assumption: You still don't make a ton, but some is non-W2.

• Traditional hard money lenders would be wary to work with you. If you happen to have income coming from investments, side hustles, etc., many lenders will count this as income, but at 75% of the actual amount and a minimum of 2 years of that steady income source (i.e. a rental property). 
• In this case, I would go for a private money lender. Everyone's definitions are different, but I view private money lenders as high net worth individuals who have their own stack of cash and loan on a case by case basis. 
• If that still isn't possible, raise private funds from friends and family - but make sure the deal is smaller and within your comfort level as a new investor.

Here's a few I've learned in the past year:

• When considering to rent to someone (after a showing), call them and go visit their current residence to review paperwork (lease, etc.). This way you can see how they currently treat their property, and it doesn't give them enough time to tidy up! 
• If a tenant has to break a lease, give them a $200 gift card if they find a replacement tenant for you (especially for good tenants, who know other good tenants).
• Gift cards and gifts. Gift cards for every major Holiday. Other times of the year - if you find out your tenant is recovering from a surgery, have a flower delivery service drop off a $30 "get well" flowers - just did that one this week.