All Forum Posts by: Stephen Hundley

@Andrew Sterling  I don't use Hard Money lenders.  This local bank is acting as a Hard Money Lender but the reason they are willing to lend at such low rates is the collateral my father is willing to put up.  I'm not a first time buyer with no experience.  I've been in Real Estate for 5 years and been investing for 3 yrs and own 3 rentals already.  

@Eva Salas 

I keep about $90k in reserves and only purchase properties with 20% equity.  I'm not leveraging myself to the hilt to buy large apartment complexes.  I'm buying the smallest houses in "A" areas.  

@Andrew Cordle 

Thank you for the detailed response!  I really appreciate your insight!  

1. My credit score hovers around 770 and I structure my tax returns so it allows me to buy property every year.  

2. I haven't talked specifics with the local bank on the refi side but if it's kept in-house then he said there is no seasoning.  If I refi in my personal name then I know the lender will want to see a lot of reserves.  How much I'm not sure yet.  I do have $90k in reserves at the moment and plan to stay around that number at all times.  I'm a little more conservative than most.  

3. I do fairly well selling real estate as a Realtor and we save 30% of every commission check.  I do 30% savings, 30% taxes and live off and run my business on the other 40%.  

I really appreciate you critiquing the plan and giving advice.  This is exactly what I was hoping to get from more experienced posters.  

I pay $250/yr for $5 million in coverage.  Wife, one kid, 2 vehicles, 3 rent houses.  

@James Wise  I definitely felt like one of those pie in the sky people when I first got into real estate at 22.  All of the concepts sounded great but the actual money seemed so far away.  I'm so happy I took action and bought my first property 2 years ago.  So many things I would never learn in a book; only in the school of real life.  

@Michael Noto Thank you, I appreciate your response!  

@Eva Salas  Thank you for your reply!  It feels like a breakthrough moment for me so I'm really pumped!

I'm 27 and I wanted to get a few rentals under my belt before approaching my Dad about him funding a rental purchase.  I used traditional financing on the first two purchases and they have turned out quite nicely.  I put 25% down on each and cash flowing $300/m on each with 15 yr mortgages.  These are 3 bedroom homes in prime areas.  

I'm under contract to buy my 3rd rental with traditional financing.  I'm doing a 30 yr mortgage on that one and expect to cash flow $580/m.  It's also in a prime area.  

I called up my Dad and mentioned my recent deals and asked if he knows any people around his age that have made a substantial amount of money in real estate in hopes I could meet with them about getting some private money.  He mentioned two names but then also mentioned his connection with his bank.  

You see my dad has been a rice and crawfish farmer for over 40 years and within that time he has taken out multiple million dollar crop loans and successfully paid them back.  Needless to say he has a great relationship with this bank.  Most of his land is paid off so it is very easy for him to make a quick phone call and get a line of credit to purchase real estate for cash.  

The lender at the bank said we could get max $300,000 at 7% for up to a year whenever we want.  No origination and no points.  I was ecstatic to say the least.  

My plan is to purchase properties at 70-80% off and then refi either in my personal name after 6 months of seasoning or with a different local bank right after purchase that offers 20 year amortizations.  I feel like I won't ever have to pass up any more good deals and the sky is the limit.  Only thing I'm missing is a good deal!  

I started making calls to local wholesalers and will start making low offers on MLS properties this week. I'm 27 now and my goal is to have 30 SFR's before the age of 30. Let me know your thoughts and experiences with this strategy.

Thanks!

Congrats Mark!  I also put another rental under contract for $115,000 (My 3rd) and plan to rent for $1,300 as well!  It has a 6 month old A/C and 2 yr old 35 yr roof in an A area.  Trying to play catch up!

amazing show! It was pretty cool to hear he grew up in lake Charles Louisiana of all places only 45 min from here. He is definitely self made. Will listen multiple times 

@mikehoefling I'm an agent with kw and will be happy to answer any questions you have. I have been with kw 5 years running and absolutely love it. Happy to help any way I can.