All Forum Posts by: Travis Main

@Jason Khoury To piggy back of @Katie Smith, Yearly assessments on condos, a common practice, can significantly impact property cash flow. While investing in a condo as a first investment isn't necessarily a bad idea, it's essential to be aware of potential pitfalls. I currently reside in a higher-end condo in Orlando, Florida, and obtaining a mortgage with a sub 3% interest rate was crucial for making it a feasible investment.

Allow me to share a personal anecdote that sheds light on the condo buying experience. When I was searching for a condo in Orlando, I encountered several challenges. The first hurdle was finding a warrantable condo, which proved to be a daunting task despite exploring over 20 different units. Subsequently, I found a reasonably priced unit and proceeded to secure it under contract. However, during an HOA board interview, I was informed by the HOA president about an impending $40,000 assessment per unit for major renovations. This revelation prompted me to reconsider the purchase, as it indicated financial instability and substantial building repair needs. This experience underscores the importance of thorough due diligence when buying condos.

Additionally, it's crucial to be aware of state laws governing condo ownership. For example, in Florida, there's no cap on how much HOA fees can increase annually. Therefore, prospective condo buyers should carefully consider these factors before making a purchase decision. While condos can offer attractive investment opportunities, cautious consideration and research are essential to mitigate risks.

@Michael Chavis

As a novice investor venturing into the real estate realm, immersing yourself in a community of like-minded individuals is paramount. Joining your local real estate investors association (REIA) offers an excellent avenue for such networking. In my experience, the NCREIA stands out as one of the premier REIAs, providing a wealth of invaluable information tailored to your specific market. Engaging with seasoned professionals in your local community allows you to glean firsthand experiential knowledge, offering insights and lessons that may be unique to your area. Learning from those who have navigated similar paths before you can be immensely beneficial as you embark on your investment journey.

I happen to be a member of the NCREIA myself. Should you have any questions about joining or wish to attend a meeting to gauge its suitability for your interests, please don't hesitate to reach out. I'm here to assist you in any way I can.

@Robin Hopkins

I'm a Florida-based lender with operations spanning across the Carolinas. When considering investment properties in South Carolina, it's crucial to pay close attention to property taxes. Unlike primary residences, investment properties in SC are subject to higher tax rates. This factor can significantly impact your cash flow potential, especially if you're contemplating a buy-and-hold strategy. It's a point worth considering as you navigate your investment decisions.

That said, investing in these regions holds great promise. Both states rank in the top 10 for population growth since 2020, indicating robust economic prospects. I foresee continued growth in these markets, presenting numerous investment opportunities for savvy investors.

Should you have any inquiries regarding these markets or require assistance, I'm always available to offer guidance.

@Jack Honroth

While the MLS remains the largest platform for property searches, it shouldn't be your sole resource. The drawback of relying solely on MLS, realtor.com, zillow.com, or similar listing sites is their widespread popularity. The high visibility of listings on these platforms often leads to intense competition, making it challenging to secure deals that align with your investment criteria.

I highly recommend identifying a target market and cultivating relationships with local wholesalers operating in that area. These wholesalers often possess off-market deals that haven't been listed on the aforementioned platforms. Engaging with them allows you to gain a competitive advantage, as you're not vying with as many investors for these targeted opportunities.

While there are other avenues for accessing off-market deals, many investors are leveraging platforms like investorlift.com. However, it's crucial to exercise due diligence when using such platforms. Frequently, the numbers provided may be inflated. Ensure that the purchase price, rehab costs, and After Repair Value (ARV) are all reasonable and accurately assessed. Sometimes, these deals may lack the margins necessary for a prudent investment.

If you ever need assistance evaluating deals to determine their suitability for your investment goals, I'm more than willing to offer my expertise. Don't hesitate to reach out—I'm here to help.

Hey Natali, 

Welcome to the bigger pockets community! The company I work for is very consultative when it comes to real estate investing and it's free of charge. If you ever want to connect to discuss strategy before making the big leap I would be more than happy to assist. Feel free to reach out. 

@Jung-Jin Shim

I strongly advise against entering into any deal where you're facing a negative cash-on-cash return. Ideally, you should aim to at least break even. While some lenders may consider breaking even as "performing," I personally wouldn't classify such an asset as performing. Remember, there are numerous deals available, and although I'm not deeply familiar with the Columbus market, I believe you can find a more favorable opportunity with a positive net return.

If your primary objective is passive income, as indicated by this scenario, investing in the S&P may indeed offer a more passive approach. However, it's essential not to overlook the additional profit avenues mentioned by Kevin—appreciation and mortgage paydown.

Continuing your search for the right deal is key. Transitioning from single-family residences to multifamily properties, particularly those with 2-4 units, is likely to result in a better cash-on-cash return, provided they are acquired at the right price. Remember, success in real estate often hinges on purchasing properties at favorable rates. There's no need to settle for anything less than the perfect opportunity. Patience is a virtue; wait for the right moment to seize the ideal investment opportunity.

Hey Kirk, 

Welcome to the BiggerPockets community! As a fellow member of NCREIA (North Carolina Real Estate Investors Association), I strongly encourage you, as a new investor, to consider attending one of our monthly meetings. These gatherings provide an invaluable opportunity to connect with like-minded individuals in your local market who can offer firsthand advice and insights to support you on your real estate journey.

Similar to the wealth of resources available within the BiggerPockets community, NCREIA offers a multitude of tools and resources to assist you in your endeavors. Should you ever wish to discuss strategies for achieving your real estate goals, please don't hesitate to reach out. I'm here to lend a helping hand and share experiences that can help propel you toward success in the real estate realm.

@Kimberly Mckell Welcome to the bigger pockets community! 

I am eager to provide you with a comprehensive overview of the process involved in obtaining a Hard Money Loan (HML). Despite any initial apprehensions you may have, the process is far from intimidating.

As someone entrenched in the lending industry myself, it's essential to clarify that our primary goal is not property repossession. However, it's prudent to acknowledge the existence of a "loan-to-own" mindset in certain circles. Therefore, it's imperative to conduct thorough due diligence when selecting a company to facilitate your financing. Opting for a reputable entity within the industry is advisable, and seeking out reviews can provide valuable insights in this regard.

When seeking qualification for a hard money loan, lenders typically scrutinize four key factors: company structure, creditworthiness, liquidity, and collateral. Establishing a corporate entity, such as an LLC or corporation, under which the property will be vested, is a common prerequisite. While personal credit may also be evaluated, particularly if a company member holds at least 25% ownership, demonstrating sufficient liquidity is equally crucial. This entails furnishing bank statements reflecting ample cash reserves to cover the property purchase and potential rehabilitation costs to get the project started. Moreover, lenders often mandate reserves to ensure the borrower can meet ongoing financial obligations.

Selecting viable investment properties is another vital aspect of the process. Properties must align with the investor's objectives, facilitating purchase, renovation, and eventual sale with a favorable return on investment.

The pre-approval process varies among lenders but typically involves assembling financial documents, company records, member identifications, and the purchase contract. Subsequent steps include credit assessment and, upon agreement of terms, submission for underwriting. During underwriting, preliminary title searches, insurance procurement, and appraisal arrangements are initiated. Depending on the lender's protocols, either traditional or virtual appraisal methods may be employed. The latter, though more expedient, necessitates access to the property for interior assessment at the borrower's own convenience . Upon completion of the appraisal process and satisfactory underwriting outcomes, final clearance for loan closure is granted.

Should you want further discuss on any aspect of this process just let me know, I would be more than happy to hop on call.

Hey Annwar, 

       I'm a lender who services the Philadelphia area, if you ever would like to connect just let me know.