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All Forum Posts by: Trevor Bond

Trevor Bond has started 13 posts and replied 30 times.

Post: Is this a realistic strategy I can use to help others?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Thanks @Marty Boardman and @Paul Riley

I appreciate the advice and insight from both of you. I will continue to discuss this with my business partners as it seems we have some obstacles to work around and alter our strategy. 

Thank you for the help and I wish you the best of luck in your journey!

Post: Fresh out of College looking for a place to live

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

If you are looking to househack or find a place to live that will be an investment, finding the right market is key. You need to find an area that fits your budget as well (Chicago housing is much more expensive than their suburbs for example). Everyone has different requirements or criteria but I will share a few I recommend looking into as I am an acquisition analyst for a RE investing firm.

Population growth, crime, median housing price, income growth, job growth. Look into what types of businesses and stores are nearby to determine the quality. I would also look to see how many properties fit what you are looking for. For example, if you are looking to househack a duplex, you should research how many are in that town and etc. Don't plan on moving to a city that has no duplexes if you are looking to find a duplex.

There are free crime maps for cities and bestplaces.net has some demographics under the economy tab that should be able to help. Remember that it is generalizing and should be used as a range or reference, it is not completely accurate. 

Let me know if there is any specific resources or areas you are looking into and I would be happy to help.

Best. 

Post: Trying to Buy a House in Norfolk, VA to Turn into a Rental

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Anytime Andrew. 

Like I said, I would ask either multiple local experienced RE investors around about what they do with an LLC and how it is treated by local lenders. Another tip I have is to speak with local lenders and use a small bank/credit union rather than apply through a big bank where you can't build a relationship with someone. And once you get those first two properties, you will be building equity very quickly and will lead you to scale faster.

Post: Trying to Buy a House in Norfolk, VA to Turn into a Rental

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Hey Andrew,

First off thank you for your service. I do not know much about the Norfolk area but I can provide some advice on your strategy.

I think using a VA loan in your name is an amazing idea. You should definitely look into using that and refinancing after a year if you have enough equity and do it again (since you can only have 1 VA or FHA loan at a time). I am personally not the biggest fan of single family because you will not get as much cash flow as multifamily but if you are looking for appreciation more than cash flow it could be worth your time.

For disclaimer, I am not giving legal advice. I think owning an LLC to put your investments under is a smart idea. However, you probably will not need to buy an LLC to get the property. You can do that later as no one is going to sue you the first day and you are getting a VA mortgage in your name. Different lenders handle the LLC entity idea differently so you need to check with your lender to see if you can put the property under that later. I am guessing you will refinance so you can check on an option to refinance and put it under an LLC later. Having an LLC is a good idea, but not a requirement to get into real estate right away. I have heard experienced investors say they get a mortgage under their name when buying property and transfer the property over to their LLC the day after closing. You should speak with a CPA or Attorney for this advice and their time will definitely be worth the money. Protecting yourself with an LLC is important and I am pro-LLC for RE investors, but you can always form one after you own the property. I own an LLC for work and it is not hard to obtain.

My recommendation would be to use the VA loan and house hack (could rehab if good opportunity and it fits your business plan). Later, refinance that VA loan to either use a VA loan on another property and get some money out if possible to invest again. Your mortgage payment will change and could be more or less than before, leading to a possible result in better cash flow if renting. After you get the first VA loan on a house, you and your partner can look into putting a down payment on another property. I would recommend more than one unit, but that is up to you and your strategy and whether you are looking for cash flow and appreciation.

Hope this helps

Post: Is this a realistic strategy I can use to help others?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Hey all,

My business partners and I are considering a potential strategy we found matching our long-term business plan. We are young and currently do not have much capital or equity. Our goal is to earn initial capital to invest with later. Here is an example of what we are thinking:

Example: A house is getting foreclosed on and for sale at $80,000. We know the property is worth around $150,000. We would buy the house for $80k and rent to the current owners who would pay interest payments with an optional balloon payment in 2-3 years if they would like to buy the house again after being able to obtain a mortgage. We would carry a land contract with the intent to sell back to them later if all works out.

I understand the risks with foreclosed tenants and how careful we would have to be with picking the right tenants. This strategy provides an opportunity to help others by not forcing them to move out and letting them stay in their home. Our collective thinking leads us to believe that we have these alternative strategies:

1. Rent to the family using the strategy above

2. Sell if the owners would NOT rent

3. Potential to flip if the numbers and market work out

4. If our current owners can not obtain a mortgage in 2-3 years, we could still sell it later for a great deal or keep renting if we are still making money.

If you have any comments about risk, strategies, or additional insight we are greatly appreciative!

Post: Will appraisal be different depending on the entity?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

That's great Mike. Thank you for taking the time to answer.

Post: Will appraisal be different depending on the entity?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Hello BP,

My question is will my investment property get appraised differently if it is in the name of an LLC or individual? I want to make sure I plan this correctly for the sake of lending and liability. Feel free to add suggestions or advice on my plan below.

I will get an FHA or 203k loan and househack a 2/3/4-plex. I would purchase it in my name and transfer the title to an LLC after closing. I am concerned that if I put it in a LLC before I refinance it (or at sale) and they appraise it as a business (concerned with revenues and expenses) instead of what the home would be worth in the name of an individual.

Best,

Trevor Bond

Post: How competitive is this tertiary market?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Hello all,

I have been planning to move to a new city in 10 months or less and have grown to find multiple markets that meet my investing criteria and where I would be happy to live. How can I find out how competitive the investing market is there if I am located out of state from where I am moving to? 

Thank you

Post: I am stressed: can I get financing as a 10-99 employee?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

@Joshua Janus and @Bob Okenwa Thank you for that help and insight! That helps me out so much and I wish you both luck in the future!

Post: I am stressed: can I get financing as a 10-99 employee?

Trevor BondPosted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 30
  • Votes 5

Hi everyone,

I am 21 and graduating this May and accepted a job as an independent contractor and will be a 10-99 employee. I have been told that it will be harder to get a mortgage because I am an independent contractor and not a W-2 employee. I wanted to ask if you have any thoughts or would know more about this. I want to note my goal is to house hack this year / BRRRR a 2-4 unit property. I am pretty stressed about this and I would most likely be using FHA or loan downpayment loan etc. Does being an independent contractor hurt my chances of buying a property?

Any help would be greatly appreciated.

Have a blessed day,

Trevor