All Forum Posts by: Terra Padgett

Quote from @Madri Koppe:

Agreed. A lot depends on what your interests are and what you are willing to learn. RE in all its facets has always interested me so that is a large portion of our investment strategy although we have others. 

I concur. For example, I have a partner who is getting into the Turo rental car business. I have no desire to learn that space or be a rental car service. Heck, I don’t even enjoy driving, would much rather have a chauffeur 🤩 But if he does and can make a fortune doing it, then cheers to him and that business. 

Definitely reach out to the local housing authority &/or their case manager and advise them of the problem. They are required to follow their lease agreement like any other tenant. They can lose their voucher and get kicked off the program. 

Sure, I'll cover your first month's rent after they have moved out of your place, you have changed the locks, and they have provided you proof or a receipt of the first month's rent they paid to their new Landlord. That first month's rent is then deducted from the $4,300 they owe you. You've already paid in advance.  

Flipping, Wholesaling, Owning Rentals, Crypto, Stocks, etc. They ALL can, do, & have worked for many different types of investors. You'll hear lot of chatter about what "doesn't work" or what's "a better investment" for this or that; And maybe it is for some and maybe not for others. Investing isn't an Either Or sport, but rather a This And. Find what fits your desires, goals, or enjoyment levels and run with it. You might find success, you might find losses, you might find a lot of lessons learned. As long as you survive to see another chance at bat. 

My preferences are passive RE investments; whether through Debt, LP Equity stakes, etc. What are yours 🫵?

Retail has remained steady post-pandemic. Unlike it's buddy Office Building. Not sure what to attribute retail's survival to, especially with a lot of store closures, but the asset class does seem to have staying power. 

I've purchased one property with them before. Definitely inflated ARVs and I have no clue where they get their repair costs from. My estimates were much higher. This property in particular had some additional unforeseen costs (main water line damage, sewer line damage, etc.) that certainly caused us to go way over budget. Selling after the rehab was not an option. We were able to refi and pay private lender back, but no cash was able to be pulled out. So we are still holding the property and renting out for a few years and we'll see when the right time to exit will be. I'd say they have a consistent deal flow for you to look at, but certainly don't take the data they provide as your basis for buying/rehabbing/selling. Do your research independently to see if the deal pencils. Go walk the property yourself. 

Quote from @Owen Rosen:

Quote from @Tekoa Glover:

Thanks. What does the DP3 mean

 It's a type of "Dwelling Policy."  I wouldn't worry too much about this terminology though as different companies have different names for similar things.  Insurance jargon is annoying and many terms are synonymous or just plain confusing.  Work with a knowledgeable independent agent.

What Owen said ⬆️

You'll need a DP3 policy or a Dwelling Fire policy. Call a local insurance broker and tell them you need insurance for a rental property you own and they will be able to get you quotes for what you need. You should still always require the tenant to have renters insurance with liability coverage at a minimum. 

Quote from @Ian Stedman:

I guess my hang up is that if I'm already using loaned money as a down payment, how will the bank approve another loan on top of the HELOC.

If you're using the HELOC for just the down payment portion on the investment property, then you'll likely need to fund the rest with private money or a HML and then re-fi out to conventional once you've renovated and rented. Conventional loans typically aren't for rehab projects, but rather for ready-to-rent or light cosmetic upgrades. They're for the long-term hold with the 30 year note. You'll pay back the HELOC once you've done your BRRRR refinance and then you'll only have your new Conventional loan left. You'll have to buy right to get either instant equity or forced appreciation so that you can pull some cash out during the re-fi to be able to use that for your next deal. I'd suggest you speak with some lenders and run your scenarios to see what the right strategy is for your particular deal.

Yes, if you have or obtain a HELOC you can use the funds for pretty much anything. So that could very well go towards an investment property. Be sure you have cash flow to pay the monthly payments on the HELOC until you're able to refinance out the new property. And depending on how you're buying, make sure you'll have enough equity to cash out the amount you'll need to pay back the HELOC.