All Forum Posts by: Todd Powell

@Michael Kistner Why do you want them on one tax address? Is it merely for financing reasons later, or something else? I always believe that separate properties give you more flexibility and when you sell typically will net you more money per unit. I own two 4 plexes that share the same parking lot, but bought from two separate older owners and on two different tax lots. I would not want these combined for any reason I can think of. What is your motivation behind this?

@Erik B. Don't be discouraged, but definitely try things differently. On the west coast over here, multiple offers are happening on every deal that makes sense. If its a good deal at all many investors show up. I have built my RE business on finding off market deals, word of mouth, knocking on doors, driving by run down homes, networking with other investors, realtors, Zillow, craigslist, and even tried writing letters (none ever worked).

Also, get another RE agent! I have been frustrated with those situations in the past. I also have gone directly to the listing agent, and tell them you understand they have to represent the seller with first priority, but that you will accept dual agency. This way, they get paid on both sides of the deal, but just as importantly, they have the direct pipeline of information with the seller to help get the deal done. Information is Power! Also, greed of the deal helps a little as well. I have heard many realtors say, "I am waiting to hear back from the realtor."  Guess what, I work hard to make deals happen and the squeaky wheel gets the grease. Be more aggressive in your approach looking for deals. I have several realtors and I tell them that whoever calls me when I buy will also get the listing when I flip, so they are getting two deals in one! I have a saying, "you have to flip a lot of rocks to find the deal."  Back in 2002-2009, I used to find deals everywhere and when I put my sights on one house I would figure out a way to close the deal. Today, there are so many HGTV house flippers wanna be's that I have to look at 10 before I can get just 1. Its tough, but stay on the grind! Also, cash talks so look into a hard money or private short term investor so you can secure the deal and then structure it later the way you see fit! Hope that helps a little

@Gabriella Vehrs welcome to BP! I am a novice to BP with a week or so, but not notice to RE!

Step 1: LEARN all about RE investing. Listen to podcasts, read BP blogs and forums, books, whatever. Meet some investors that have actually done it, but get the knowledge! Only listen to people who have actually done deals.

Step 2: get income, credit scores, and job times in line. Your DTI, debt to income ratios, and having that savings account ready to go when the time is right! Be a prepared buyer, not a just a dreamer!

Step 3: Start evaluating deals, look at your market, sold comps, valuations, and make sure the numbers make sense. Many people use many different models to gauge what a good deal is. My goal was to find off market deals, so basically buying a dollar for .60 cents. Many will say this cannot be done, but I have done this countless times. DO NOT let negative people impact you and tell you it can not be done. I have had realtors and family members say what I was doing was risky or impossible. It takes hard work, so roll up your sleeves! These are just general steps but I am happy to share other specifics if you want. I wish you success!

@Ken Catron If she could live there, you could do a FHA loan with as little as 3.5% down, but I believe you have to live there for one full year. But, why not live there for 2 years from the purchase and sell it tax free? If its her primary she could do this. If there is a will there is a way. Of course, the market would have to hold for you during that time period. Maybe it would go up further though?

@Ken Catron My understanding is she could get a 5% down type of loan, but typically banks and all lenders want to know you will occupy. They are not in the business of non owner investment riskier deals so you can fix and flip. But, is it nice enough she could live there while fixing?

@Sandy Hu I used to have several with Bank of America but in the down economy they bailed on all of them. I just took a fantastic HELOC out with KeyBank, at 90% LTV and a 15 year draw period interest only. It is prime rate minus .25%. I don't know what kind of product you want, but this was next to no fees with their "friends and family" deal they offered. Hope this helps!

@Angela Jossy Maybe a simple question, but why not keep that said property and only put down 3.5% on a FHA loan? Is this possible? My son house hacked his first 4 plex deal doing that, and then bought a second property a year later and did the same thing and actually moved to keep the legal requirements. Why do you have to have the 20% down for the second property?

@Denise Evans It was clear and decisive that you had a full grasp of this and very detailed knowledge! Thanks for sharing! Many obviously don't fully understand the laws.

@Grant Schroeder Erik is great, and Jason also has a great path how he has built wealth through obtaining properties. I would happy to meet up, and maybe some time with both myself and @Jason Powell

@Denise Evans how do you know so much about this topic? You bring a lot perspective here, and thank you