All Forum Posts by: Stephen Daniel Pace

Its definitely possible just have to continuously look for the right property/area and be patient. I recently purchased a single family home in the Jersey Village area that I found on the MLS that was pretty much turnkey - it only needed cosmetic repairs. It took about 4 months to find it as my search criteria was pretty strict, but it needed to be since it was my first property and I wanted make sure I eliminate as many potential issues before purchasing as possible. I only cashflow about $150 but that will increase when/if interest rates improve. Continue to be patient, network, use an realtor if you can (mine is amazing), and learn as much as you can. You'll find something!

Hi Nathan welcome to the BP Family! There is an upcoming monthly Montgomery County REI Meetup on Jan 19th. Here's the link to more info about it on BP. I attended the last one in December and it was great to connect with other investors in this area. There were aspiring, newbies, and seasoned investors and even realtors and other real estate professionals that attended. It's very informal and everyone is inviting. Hope to see you there!

Also, feel free to reach out if you want to connect!

Hey BP family! I'm looking for a preparer and tax strategist that is knowledgeable in real estate investing in the Houston, TX area. Any recommendations would be very much appreciated! 

Hey BP family! I close on my first property this week and after closing, I'm wanting to get a business credit card to use for rental expenses purposes, particularly the things I'll need to purchase to prepare it for renting. Is it better to go through the process to get an LLC and EIN and then apply for the business credit card? I don't plan to transfer the ownership of this property to the LLC since I'll eventually want to refinance the 30yr conventional loan that I'll have down to a lower interest rate. (I've heard there are challenges with getting a conventional loan under an LLC). Or is it better to apply for a business credit card without an LLC and EIN and just use my personal info on the application? TIA for your reply! :)

Quote from @Daniel Tanasa:

Quote from @Conner Olsen:

Quote from @Stephen Daniel Pace:

Quote from @Conner Olsen:

Quote from @Stephen Daniel Pace:

Hi BP! I'm looking into getting a HELOC on my primary residence since I have significant equity mainly due to the current market. I'd like to use it as a down payment or cash purchase for my first investment property so that I don't have to use my cash savings. I've seen and heard that this is possible but want to get thoughts from others who have done this and what success or challenges they've had. Thanks in advance for your replies!

Use a HELOC if you plan to pay it off in under 2 years. If you can't do that then refinance or get a second lien.

Hey Conner! So you're saying refinance the the loan for the investment property or get a second lien on it if I can't pay the HELOC off in 2 years? I'm just trying to understand your recommendation…

 HELOCs are great for short-term projects like flips or BRRRRs. The advice I hear from investors more experienced than me is plan to pay it off in one year, two years max. That's because interest rate environment is so unstable and that can kill your cash flow. If you want to do a buy and hold, I'd get a second loan on your equity or refinancing the whole property to get the cash to buy the investment.

 Do you know any bank or credit union that will take a second lean position for a primary? I see you are in Texas as well. I am asking for a client in Houston. Thank you! :D 

Hey @Daniel Tanasa I just sent you a message in response to your question :)

Quote from @Conner Olsen:

Quote from @Stephen Daniel Pace:

Hi BP! I'm looking into getting a HELOC on my primary residence since I have significant equity mainly due to the current market. I'd like to use it as a down payment or cash purchase for my first investment property so that I don't have to use my cash savings. I've seen and heard that this is possible but want to get thoughts from others who have done this and what success or challenges they've had. Thanks in advance for your replies!

Use a HELOC if you plan to pay it off in under 2 years. If you can't do that then refinance or get a second lien.

Hey Conner! So you're saying refinance the the loan for the investment property or get a second lien on it if I can't pay the HELOC off in 2 years? I'm just trying to understand your recommendation…

Quote from @Gerard Scranton:

Hello Stephen, I too am interest in using a HELOC to start this adventure. I'm still analyzing the data and scenarios as to which route to take. Fix & flip, BRRRR, Private money. Would be great to connect with you and maybe share notes.

Hey Gerard! Sure let’s connect! I closed on my HELOC about a month ago. Took a while to get everything worked out with the credit union I’m using. But I currently have the HELOC funds ready and available to use now so I’m actively trying to find a property. 

Hi BP! I'm looking into getting a HELOC on my primary residence since I have significant equity mainly due to the current market. I'd like to use it as a down payment or cash purchase for my first investment property so that I don't have to use my cash savings. I've seen and heard that this is possible but want to get thoughts from others who have done this and what success or challenges they've had. Thanks in advance for your replies!

Quote from @Bruce Lynn:

@Stephen Daniel Pace    Going to the sale next week?  Have you done your research?

Hi @Bruce Lynn I'm not going this week but still looking into this as a way to get into REI.

Quote from @Tia Wilson:

Hi Stephen,

I'm going to the tax sale next week as well. First time! I've done quite a bit of research on the process and homes and hope to snag one. Let me know if you'd like to network while there. Good Luck to you!

Hey @Tia Wilson I’m not planning to go this month but I’d still like to connect to see how your experience was and what success you had. I’ll message you!