All Forum Posts by: Shera Gregory

What type of lenders have you spoken with? What are their objections or concerns? Being able to rent for $1800 may not be enough to make that a good deal for you. Also, you mentioned using your own house as additional collateral. Most private money or hard money lenders will not want to use a personal residence as collateral because of Dodd Frank regulations regarding how to handle loans for personal residences. Can you give more detail about the analysis you have done regarding the cash flow of the investment property?

This in-person seminar is intended to help newer investors create a solid foundation for success in their real estate investing journey. Saturday is focused on finding and analyzing deals and Sunday is focused on financing including the Private Money Lending process and using self directed retirement accounts for lending.

More details at www.PlanToProfitRE.com

You are correct that getting a good team in place is critical to a successful deal. Richmond is a very active and competitive market for investors. You didn't ask about this part but I'd like to suggest you plan ahead on what you are looking for a GC to do and make that specific request. For example, if you are expecting someone to look at prospective properties before you buy in order to decide how much work needs to be done that's going to be a lot more difficult vs. looking for someone to handle the work after you have purchased a property. The more that you expect your GC to handle the more you may want to consider partnering on the first deal instead of just hiring them to do the work.

Also, since you are going to have to come to the area periodically to check in on your projects you could consider doing the same to begin to network with people in person. There are several good groups that you can find on meetup.com. I would recommend RING and the Chesterfield REIA as two to start with. Both have a small fee for attending without joining.

Hi @A Holder - As with many areas these days this is a pretty competitive market. I always recommend that you have a solid approach to evaluating potential rentals taking into account all the expenses that lie ahead like potential future capital expenses and maintenance. You need to good tool for determining market rents and you need to decide if there is any angle you want to use to try to get above market rent. For the areas you mention there's a wide range for current rent and where you fall in that spectrum can make or break a rental cash-flow wise.

Good question! I think you were just referring to the timing of when you get those profits, but if you do decide to go a more formal route to truly pay yourself for labor then you could be setting up a situation since you would have to pay self-employment tax. I agree that you should factor in those costs when analyzing a deal.

Are you attending (in person or zoom) any of the local real estate meetups? In a local group you could connect with private money lenders and hard money lenders that might be interested in this deal.

I checked on meetup.com for Phoenix and there's one tomorrow about how to present a deal to a lender. https://www.meetup.com/Network...

I have found good deals on OfferUp, Facebook Marketplace and the local Habitat for Humanity. With the used items there's a risk that a part may be missing and there's the hassle of having to go pick up the items. But, for example, I decided that buying a used $60 stove for a rental from FB Marketplace was a reasonable risk and it's been great so far. I've used those sources for lighting and appliances for flips as well. Just pick the right types of items to purchase used and you can save a lot of $$. Also, Amazon and Wayfair can be very good for lighting and fixtures.

With the flexibility of this zoom series you can attend just a few of these or all six. Here is a suggested set of topics depending on your investing focus:

September 26th is the first day of the six Saturday zoom series covering all the topics that are included in the Plan to Profit in Real Estate seminar. Information about the content and links to purchase tickets are at the Plan to Profit in Real Estate website. This is NOT a pitch for any further programs, products, etc. It's 100% good solid educational information to help you be successful in real estate.

It's hard to keep up with the changes that the various lending institutions are making this year to lower their risk due to the pandemic. Local banks and credit unions have always been a good option because they usually keep their loans in-house so they can create their own guidelines that can be less strict than the FHA ones that those who sell their loans need to follow. However, in this climate those same smaller banks could make their rules even tighter. Just depends on how they view risk and their current loan portfolio.

Traditionally a second home that you plan to be at part time has been treated differently from all other investment properties. So I think you could have a shot at the mortgage with some decent terms. But you will need to call around to check.