All Forum Posts by: Tanner Lewis

The main thing for Baltimore will be financing. A lot of lenders do not do that market due to high foreclosure rates. Just remember a "cheap" deal isn't always a good deal!

Hey John - I'm also in Austin! If you are starting out, I think relocating to a market with higher cash flow and lower taxes makes more sense. You can move to one of these markets and do a 3.5% down FHA loan, live in the property for a year, and then get another 5% down conventional. With this, you will have 8 units with as little down as possible. Then, I would go ahead and start to use hard money and DSCR to BRRRR properties. This is my strategy, but another may be better based on your goals and risk tolerance.

Hey Jaden - I'm in the same boat! I suggest focusing on your business and scaling that as much as possible before investing in real estate. Since you are likely 1099, you will have a hard time qualifying for conventional financing for the next 2 years, and it makes the most sense to accumulate as much income as possible during that time frame. 

You don't need a license to wholesale, and it can make it more complicated if you do have a license. 

If you are a first-time investor, I suggest NOT borrowing money for a down payment. First, it makes it a lot more difficult to get a loan on the deal (most lenders require that they be in first-position lien with no second-position lien), and second, it increases your leverage and, therefore, the risk of the deal. Once you are experienced and have a good base of cash flow and reserves, I think it makes sense to do a more creative, high-leverage deal, but doing it with low reserves and for your first deal is very risky. 

Pros and cons to both: STR/MTR is more work, but normally, there is a higher return and higher risk, and LTR is less work and has a lower return and lower risk. It mainly depends on your personal risk tolerance.

Hey Gina - 

1. Even if not required, I suggest getting rental loss coverage on your deals. 6 months is suggested. Normally your lender will let you know their requirements.

2. I would ask your realtor for local property management referrals, they will be the best source of the top local players in your market

3. Yes I suggest using an LLC to protect your investments!

Hey Lee - one thing I would ask your lender is if they are able to do your citizenship status. Some lenders can do foreign nationals, but most are able to lend to green cards and most visa-type holders. Find a good loan officer if you are looking for a primary residence, or check out the BiggerPockets "Find a lender" tab to get connected with investor friendly lenders 

Check out Meetup.com! There are tons of great meetups in your area, I try to hit one up at least once a week

1. I always think it is better if possible, if using conventional financing you will need to do it in your personal name, you can do an LLC with DSCR

2. before you buy the property, you can do it wile under contract

3. Doesn't matter, if out of state, you will need your LLC registered to do business in that state

4. You wouldn't need a pure commercial mortgage, you can do LLCs with DSCR loans, which are pretty similar to conventional loans, just more investor friendly: can do LLCs, qualify off property income not personal income, 20% down and 30 year term

5. Yes this is correct. The chain of title will also show that you bought the property which would negate any anonymity protections with the LLC (Wyoming LLCs). The due on sale clause will be standard for every lender that I know of.